Financial Markets Daily Report13 January 2023
In yesterday’s session, the US CPI data for December centered the stage and confirmed the downward trend kicked off last summer. In particular, the headline index fell by 0.1% m/m and the core measure rose by 0.3%. On year-on-year terms, inflation eased to 6.5% (headline) and 5.7% (core), both in line with consensus expectations.
- In yesterday’s session, the US CPI data for December centered the stage and confirmed the downward trend kicked off last summer. In particular, the headline index fell by 0.1% m/m and the core measure rose by 0.3%. On year-on-year terms, inflation eased to 6.5% (headline) and 5.7% (core), both in line with consensus expectations.
- Despite the overall decline in the general index, the evolution of certain components (e. g. shelter and other services) suggested inflationary pressures are likely to persist and will require the Fed to maintain a restrictive monetary policy during 2023. That said, the data cemented expectations for a slower pace of rate hike at the next meetings.
- In this context, sovereign bond yields declined, particularly so in the US, and stock indices rose across the board.
- Today, Spain’s CPI headline inflation for December was revised 0.1pp downwards to 5.7% y/y while core inflation (including processed food) was upwardly revised to 7.0%.