Core inflation picks up
Been busy this morning, so haven't gotten around to this yet...
Market-based measures of inflation expectations have fallen sharply over recent months, but in real time inflation remains far too high.
Headline US inflation is at least on the way down, essentially as expected, dropping back from 9.1 per cent in June, to 8.5 per cent in July, and to 8.3 per cent in August, after coming at 0.1 per cent for the past month.
This means that headline inflation has been relatively flat for two months now.
But...and it's a big but...core CPI came in well above expectations - largely driven by shelter and rents - pointing to price stickiness ahead.
The Federal Reserve will thus hike by at least 75 basis points at least at the next meeting, according to financial markets.
A bit of stock market (and crypto) pain ahead, as the Federal Funds rate hurtles towards 4 per cent.
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New home sales in Australia recorded their weakest pair of months in July and August since the lockdowns, driven by a 15 per cent monthly drop in Victoria.
There was another significant insolvency in Brisbane yesterday, this time leaving creditors short by a potential $140 million.
Seems to be an almost daily occurrence in Brisbane at the moment - must be something in the water...
