12th April 2022
US inflation rises to 8.5%, meets estimates
US inflation has come in near economists' estimates at 8.5% year on year (YoY) in March, bringing inflation to the highest level in the US since the early 1980s. The Consumer Price Index (CPI) which measures a broad basket of goods, saw an increase from 7.9% YoY, showing that prices continue to rise as conflict in Europe also pushes many prices further, most notably energy. The core measure of CPI which excludes energy and food prices, was up 6.5% YoY, showing the stronger impact energy and food prices have had on the March figure. The US central bank has, ahead of this month's data, increased signaling that it stands ready to help counter inflation, and has said it will hike interest rates and reduce the bank's balance sheet at a faster pace if required. Following the news, most developed market assets are seeing positivity, including precious metals and bonds, whilst the US dollar fades in absence of any surprise to the downside.