Jump to content

US Inflation Hits 9.1% on Soaring Gas Prices, Sky-High CPI to Embolden Fed Hawks

Recommended Posts

Jul 13, 2022 | DailyFX
Diego Colman, Market Analyst


  • June U.S. inflation spikes 1.3% on a seasonally adjusted basis and 9.1% over the last 12 months, well above expectations
  • Core CPI rises 0.7% m-o-m and 5.9% y-o-y, also above estimates
  • Unrelenting inflationary pressures will likely seal the deal for another 75 basis points hike at the July FOMC meeting

US Inflation Hits 9.1% on Soaring Gas Prices, Sky-High CPI to Embolden Fed  Hawks

Inflationary pressures remained scorching hot last month amid soaring energy costs in the U.S. economy, giving the Federal Reserve cover to continue front-loading interest rate increases during the battle to restore price stability, a process that is sure to be protracted and bumpy considering the current state of affairs.

According to the U.S. Bureau of Labor Statistics, CPI, which measures the overall level of prices of a representative basket of goods and services purchased by Americans, soared 1.3% on a seasonally adjusted basis and 9.1% from a year earlier in June, topping estimates in both cases. Analysts surveyed by Bloomberg News had expected the headline gauge to rise 1.1% m-o-m and 8.8% y-o-y.


June Inflation

Source: BLS

The annual inflation rate marked a new cycle high, quickening to the fastest pace since November 1981, nearly five times above the Fed’s symmetric 2% target, a situation that undoubtedly warrants raising borrowing costs above the neutral level and into restrictive territory expeditiously to prevent second-order effects from cascading and increasing risks to the outlook.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 30/01/23 00:00
  • Posts

    • Maximize Your Stock Market Returns: Latest News on SP500, Top Tech Stocks with Elliott Wave Analysis and Trading Strategies Stay Ahead of the Stock Market with the Latest News and Analysis on SP500, Top Tech Stocks, US ETF Sectors and Trading Strategies. Get up-to-date insights on the bullish weekly cycle, Elliott wave analysis and profitable trading opportunities in the finance sector with top companies like Apple, Tesla, Amazon, Microsoft, JPMorgan and more. Stock Market Content: SP500, AAPL, AMZN, NVDA, TSLA, GOOGL, BRK.B, SQ, META, NFLX, ENPH, MSFT, BAC, JPM. US ETF Sectors. Elliott Wave Analysis US Stocks News: Apple (AAPL),Tesla (TSLA), Amazon (AMZN), Nvidia (NVDA), Microsoft MSFT, Berkshire Hathaway (BRK/B), Block, Inc (SQ), Meta Platforms, Netflix (NFLX), Enphase (ENPH), Alphabet GOOGL. XFL Finance Sector ETF, JPMorgan JPM & Bank of America BAC, Goldman Sachs Group Inc (GS) Stock Market Summary TradingLounge Bullish Weekly Cycle in play, Bullish Monday Profit Taking Tuesday Elliott Wave Analysis: (iii) of iii) of 3 Trading Strategies: Long Video Chapters 00:00 SP500 04:45 Apple (AAPL) 08:01 Amazon (AMZN) 11:00 NVIDIA (NVDA) 11:34 Meta Platforms (META) 17:47 Netflix (NFLX)  18:59 Enphase (ENPH) 22:04 Tesla (TSLA) 24:06 Alphabet (GOOGL)  29:16 Microsoft (MSFT) 34:52 Berkshire Hathaway (BRK.B) 35:56 Block Inc. (SQ)  37:28 Bank of America BAC 25:22 TRIAL Buy 1 Month Get 3 Months  Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com  
    • Does anybody know the BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) equivalent with a GBP currency hedge? I want the interest yield but I don't want the currency risk.
    • Capital, win loss ratio. If you have a trading edge and you can consistently win 50% of your trades, so your winning 5 trades out of 10. So if your risking 1% of your capital per trade, out of your 10 trades 5 would be losers, so that’s 5% loss and realistically out of the 5 winning trades, some would make small profits, some break even and 1, 2 or 3 could run nicely IF you can let your profits run, basically your making money out of 2 trades out of the 10 trades (80/20 Rule Pareto principle) So a $20,000 acct risking 1% is $200 per trade, this will keep the trader with his trade risk based on being able to win 50% of his trades. A long term trend trader can win with 30% wining trade. Basically you need to know your numbers. Rgds Pete
  • Create New...