#ConsumerPriceInflation#

There hasn’t been all that much to talk about this week. The primary focus in markets has been around the coronavirus recovery outlook, with plenty of added concern as cases continue to tick up and lockdown measures are back in play around the globe, including China.

Inflation as measured by headline CPI rose by much lower than expected 4.59% in December (against exp 5%) primarily on lower vegetable prices. Food inflation eased to 3.51% yoy in December from 9.5% in November. The inflation print will ease some nerves in the domestic bond and money markets which h

Annual consumer inflation expected to rise in December, core rate stable. Weak Retail Sales in November, December undermine pricing power. CPI a secondary statistic after Fed adoption of inflation averaging. Interest rate policy is divorced from consumer prices. Inflation in the US has been stable f