If You’re Looking For Inflation, Health Insurance Costs Are Rising Faster Than Ever
While all eyes were trained on Mario Draghi Thursday morning, core inflation in the US came in hotter-than-expected for August, printing 2.4% from a year earlier, ahead of the 2.3% economists were looking for.
The MoM print was 0.3%, also ahead of estimates.
Although the headline gauge was actually cooler than forecasts, the rise in the underlying measure is notable, coming as it does ahead of an expected uptick in price pressures tied to new US tariffs on Chinese goods.
Remember, the new p
Goods inflation is dead, services is quite alive. Makes sense when you can buy cheap junk from wherever, but if your panaceas is giving out you need to go local. Hello Phillips curve.
I’m no math whiz, but if my calculations are correct, a single basis-point increase in the Fed Funds rate adds $1B to the annual deficit. Just sayin’…
And the 10yr just shot up three bps in the last hour.