US Economy: Inflation Behavior and Revised Data

TLDRThe latest data on US inflation has provided some relief on Wall Street. Inflation behaved as expected and reinforced speculation about potential rate cuts. However, experts believe that despite the setback in January, the overall story remains the same - there is a period of disinflation ahead. It is predicted that core inflation in March and April may come in weaker than expected. The data also shows a decline in inflationary impulses in the labor market.

Key insights

💯The US inflation figures for January were in line with expectations, reinforcing speculation about rate cuts.

📉There is a period of disinflation ahead, with experts predicting weaker core inflation in March and April.

📉Inflationary impulses in the labor market are fading, indicating a decline in overall inflation.

🗓️Future key dates to watch for include Jay Powell's testimonies and the February CPI release.

💼The market is pricing in potential rate cuts, but the exact number and timing are uncertain.

Q&A

What were the results of the US inflation figures for January?

The US inflation figures for January were in line with expectations, with a 0.3% increase in headline inflation and a 0.4% increase in core inflation.

What does the data suggest about future inflation?

The data suggests a period of disinflation in the coming months, with experts predicting weaker core inflation in March and April.

What is the impact of inflationary impulses in the labor market?

The data shows that inflationary impulses in the labor market are fading, indicating a decline in overall inflation.

What are the key dates to watch for in relation to US inflation?

Key dates to watch include Jay Powell's testimonies and the release of the February CPI.

Is the market expecting rate cuts?

Yes, the market is pricing in potential rate cuts, but the exact number and timing are uncertain.

Timestamped Summary

10:19The US inflation figures for January came in line with expectations, reinforcing speculation about potential rate cuts.

13:19The overall index futures are shaking higher in relief on the in-line inflation numbers.

14:09Snowflake stock is down 21% after a sales outlook miss and a change in CEOs.