US headline inflation appears to have reached a local peak – Lloyds Bank

The research team at Lloyds Bank, explains that the US headline inflation had also been tracking higher but now appears to have reached a local peak.

Key Quotes

“CPI inflation reached 2.7% y/y in February, the highest since March 2012. Outside of the influences of food and energy costs, ‘core’ inflation is also considerably higher than in the euro area, with February’s 2.2% y/y reading in line with the average observed since 2016. That ongoing relative ‘core’ resilience has underpinned higher relative levels of US market-implied inflation expectations against those for the euro area, even as readings have recently dipped a little globally.”