Moomoo Learn wrote a post · Dec 13, 2022 06:13

Learn of Today | CPI in focus

What to expect

If the bond market is correct, US inflation is about to plummet at the pace that it did during the 2008-2009 global financial crisis.

“Headline inflation is peaking and market participants appear keen to look forward, and remain on the lookout for signs that monthly inflation momentum has peaked,” said Andrew Ticehurst, a rates strategist at Nomura Holdings Inc. in Sydney. “Lower breakeven rates could also be signaling increasing concern regarding the possibility of recession.”

Quiz of Today

Q: When the CPI is too high, be alert to the risk of _?

A. Deflation

B. Inflation

C. Deflation and Inflation

Vote of Today

If the forecast is spot on, the annual rate of inflation would taper off to 7.3% from 7.7% in October and a peak of 9.1% in June. JPMorgan published a detailed scenario analysis for the November CPI.