The latest US services numbers provide yet another data confirmation that the #inflation process is still well-embedded in the economic system.
Its drivers have moved from an isolated set of factors (energy and food) to goods inflation and, now, services and wage inflation.
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Its drivers have moved from an isolated set of factors (energy and food) to goods inflation and, now, services and wage inflation.
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Bottom line: while the headline rate will continue to fall, #inflation is likely to prove more sticky than the Federal Reserve seems to expect.
With that, the 2s-10s yield curve inversion deepened to levels last seen 41 years ago (Bloomberg chart below).
More to follow
#economy
With that, the 2s-10s yield curve inversion deepened to levels last seen 41 years ago (Bloomberg chart below).
More to follow
#economy
From the @wsj and illustrating the strength of services and the divergence vis-a-vis manufacturing. Good news for growth and jobs; consistent with changing inflation drivers and a sticky inflation rate on the way down; and a further illustration of a Fed having fallen well behind
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