A snippet via Goldman Sachs on US inflation.
- Price inflation is .. slowing sharply.
- Over the past two months, sequential core PCE inflation has averaged 2.6% at an annual rate—half the pace of the prior year
GS says the implications for the Federal Reserve:
- if wage growth and core inflation continue to come down, Fed officials will become gradually more tolerant of easier conditions
And, for markets:
- we think risk assets only partially reflect the better recent news on US inflation
GS say that core PCE inflation should drop under 3% this year, GS says falling shelter inflation will help:
