Is the US CPI a shock?
About the author:
- Author name:
- By Michael Knox
- Job title:
- Chief Economist and Director of Strategy
- Date posted:
- 14 May 2021, 11:30 AM
The recently reported Consumer Price Index (CPI) was way higher than anticipated. I explain why in my latest podcast.
"What we have is a short-term surge in energy and used-car prices because a year ago (due to COVID19) the price of those fell to very low or even negative numbers. Now that the US economy is opening up again and people are driving again, we have a surge in those prices and that generates a short-term kick in inflation in the US.
Is this going to be a problem for the Federal Reserve? We think not.
It is wage inflation which will eventually generate price inflation but that won't happen until unemployment is much lower than it currently is, which won't happen this year or next year, but it will happen."
Watch Now
Listen
Find out more
View more analysis from Michael Knox by clicking on 'economic strategy' in the popular topics list, or listen to his full playlist of podcasts on Soundcloud. Alternatively, contact your Morgans adviser or nearest Morgans branch.
Contact us
If you would like access or more information, please contact your adviser or nearest Morgans office.
Request a call
Find local branch
Need access to our research?
You are also welcome to start a two-week trial of our online platform, which provides access to detailed market analysis and insights, provided by our award-winning research team.
Create trial account
Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.
-
Print this page
-
Copy Link