Disinflation

As of the Roosevelt Institute has pointed out, the mechanics of the mid-70s disinflation didn’t look at all like what we’ve seen recently.

Bullard, acknowledging the cooling off of money supply, said this downshift in money "bodes well for disinflation," which means the Fed is likely to face an enduring trend of lower price pressures.

Euro declines today comes amid a mixture of data that indicated more disinflation in conjunction with the declining pessimism of the German consumers in addition to the sharp decline in the Eurozone bond yields.

Fed is finally looking at rate cuts as disinflation gets underway.

Our overall sales continue to be affected by industry-wide disinflation.

Per my analysis, disinflation is very likely to be the trend in 2023 with many tops having been confirmed or soon to be among CPI components.

That makes Thursday’s consumer price index report for July critical for showing whether the economy is seeing sustained disinflation and whether markets are correct in believing rates are close to peaking.

That would certainly help the goods disinflation cycle and remove some heat from core rates.

The bank said last month, when it delivered a larger-than-expected 500 basis points rate hike, that the current level of monetary tightness is significantly close to the level required to establish the disinflation course.

The FOMC is still likely to be encouraged by the positive inflation data from December 2022, which would fit in the narrative of disinflation.

The sharp slowdown in China has resulted in persistent disinflation and further support measures will be needed to avoid a downturn in inflation expectations that could dampen consumer spending.

Today, savings levels are improving due to disinflation but remain below pre-COVID levels.

US stocks are rallying after some standout earnings and economic data that suggests disinflation trends should remain in place for a while.

What happens now depends on whether we accept, quibble, or deny the obvious conclusion: the Fed has been late to recognize the shift from inflation to disinflation/deflation.

As we’ve argued consistently, there are serious reasons to doubt that disinflation is really going to have staying power.

Goldilocks dies when pleasant disinflation morphs deflationary and she also expires when it morphs inflationary.

He stressed that three factors will determine the course of disinflation in the coming period.

If past rate cuts start to turn disinflation into outright deflation, it will present a whole new set of challenges.

In addition, during the after-meeting press conference, Powell said that any unexpected weakness in the labor market would prompt the Fed to begin the rate cutting process even if the disinflation momentum continues to stall out.

Investors’ portfolio preferences will work in favor of the Turkish Lira and the real exchange rates will support disinflation, the minister said, noting that the Central Bank’s reserves are increasing.