U.S. Outlook: Will inflation come back to life?
Just when the market and the Federal Reserve had lost all hope on inflation, we will be watching next week’s inflation data for August with a keen interest.
For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Sept. 8.Key observations:
- Hurricanes Harvey and Irma should only add to the upward price pressure on commodities as building gets underway.
- Producer prices in the construction sector are rising at the fastest pace since 2014.
- From a year ago, retail gas prices are now up 20.5%.
- We think the chance of a December rate hike from the Fed is at just over 50%.