Lates News

Allianz's chief economic advisor Mohamed El-Erian stated that the core CPI inflation data in the United States is completely in line with market expectations, while the overall CPI is slightly lower than expected. This is good news. However, the not so optimistic news is that, as with other inflation data, the US economy has now entered its sixth year of inflation consistently exceeding the Federal Reserve's target. Specifically, the monthly core CPI in January remained steady at 0.3%, in line with expectations, while the overall CPI was 0.2%, slightly below the market expectation of 0.3%. Annual inflation indicators both saw a slight decrease to 2.5% and 2.4%, respectively. The bond market reacted swiftly to this data, initially pushing the 10-year US Treasury yield down to 4.08%, marking the lowest level so far this year.