Making Sense

The technical view prevailed and the internals of the U.S CPI data were not encouraging. Core Services Inflation ticked higher. The Rent of Primary residences moved lower from prior month , rising 6.09% yoy, 0.36% mom (wt 7.71%) but the OER (Owners' Equivalent Rent) rose 6.23% yoy, 0.56% mom (wt 26.02%). The much awaited decline in Core Services Inflation and the Shelter Inflation eludes.  Snapshot YoY MoM Prior YoY Prior MoM 2023 High 2023 Low               CPI 3.11% 0.31% 3.32% 0.23% 6.36% 3.05% Food 2.56% 0.39% 2.73% 0.21% 10.13% 2.73% Energy -4.34% -0.91% -1.84% -0.21% 8.59% -16.68% Core CPI 3.87% ...

 Yesterday, we saw the release of Tier 1 data out of the U.S wherein Headline CPI rose 3.30% yoy and the Core CPI rose 3.90%. See the table below for details: Snapshot Index YoY MoM Prior YoY Prior MoM Headline CPI    308.85 3.30% 0.30% 3.12% 0.10% Core CPI    313.22 3.90% 0.31% 3.99% 0.28% OER    400.50 6.35% 0.47% 6.68% 0.50% Rent of Primary Residences    410.16 6.47% 0.42% 6.87% 0.48% Shelter    390.04 6.17% 0.46% 6.53% 0.45% Services    393.21 4.95% 0.46% 5.18% 0.54%  On the release of the data, USD cau...