US Inflation Figures
Andrew Milliner, Global Bonds Portfolio Manager at Janus Henderson Investors, has put together the below comments in reaction to current U.S. inflation figures and what it means for the economy and markets moving forward. Please let me know if you have any questions or wish to further discuss with Andrew.
April Producer Price Index: Core Final Demand Up 0.7% MoM
This morning's release of the April Producer Price Index (PPI) for Final Demand was at 0.6% month-over-month seasonally adjusted, down from a 1.0% increase last month. It is at 6.2% year-over-year, up from 4.2% last month, on a non-seasonally adjusted basis. Core Final Demand (less food and energy) came in at 0.7% MoM, unchanged from the previous month and is up 4.1% YoY NSA. Investing.com MoM consensus forecasts were for 0.3% headline and 0.4% core.
Baby Boomer Employment - April 2021
The 20th century Baby Boom was one of the most powerful demographic events in the history of the United States. We've created a series of charts to show seven age cohorts of the employed population from 1948 to the present.
Long-Term Look at the CPI
The Consumer Price Index for Urban Consumers (CPI-U) released this morning puts the year-over-year inflation rate at 4.16%. It is abovethe 3.76% average since the end of the Second World War and above its 10-year moving average, now at 1.73%.
Will COVID-19 Accelerate Euro-Area Integration?
Widespread lockdowns have resulted in record output declines and soaring debt across the euro area. But the political response to the COVID-19 crisis may be positive for the European integration project—and for euro-area bond markets.
Inflation: The Components
Here is a table showing the annualized change in Headline and Core CPI, not seasonally adjusted, for each of the past six months. Also included are the eight components of Headline CPI and a separate entry for Energy, which is a collection of sub-indexes in Housing and Transportation. We can make some inferences about how inflation is impacting our personal expenses depending on our relative exposure to the individual components.
Components of the CPI: April 2021
Let's do some analysis of the Consumer Price Index, the best-known measure of inflation. The Bureau of Labor Statistics (BLS) divides all expenditures into eight categories and assigns a relative size to each. The pie chart illustrates the components of the Consumer Price Index for Urban Consumers, the CPI-U.