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US Core Inflation: Temporary Relief?
US core inflation did not land sharply higher than expected for the first time in four months. Headline CPI readings were in line with expectations, but core inflation was a little softer than expected. That doesn’t mean that core inflation was soft last month, but it does provide one month’s relief in what remains a full cycle debate over transitory and longer-lived drivers. At an annualized rate, the 0.3% m/m seasonally adjusted rise in US core inflation translates into a 4% pace which continues to strongly overshoot the Fed’s run slightly hotter revised goals statement. As chart 1 shows, that annualized pace ... (full story)