Following the UK inflation data this morning we scoot across to the US to see how inflation is doing over there
Inflation is running at 1.1% y/y in the States and is expected to rise to 1.5% today. Core CPI is already above the Fed’s target rate of 2.0% by 3 ticks. Inflation has been a big topic for Fed heads with some happy to let it overshoot before hiking and some who wish to hike in advance of that happening. By and large those differences seem to be narrowing and the market thinks that the two sides shall meet, most probably, in December.