News | Forex Optimum



US: Inflation rises to 4-decade high in December – UOB

Senior Economist at UOB Group Alvin Liew comments on the latest US inflation figures.

Key Takeaways

“The latest US CPI data showed consumer price inflation surged further by 0.5% m/m, 7.0% y/y in Dec (from 0.8% m/m, 6.8% y/y in Nov), at a new record y/y pace since Jun 1982 (7.2% y/y). Core CPI (which excludes food and energy) also rose by 0.6% m/m, 5.5% y/y, from 0.5% m/m, 4.9% y/y in Nov, the highest y/y print since Jun 1991 (4.96%) The inflation outcome again did not surprise the markets as it was quite close to expectations.”

“The headline and core CPI inflation were not only higher in Dec but were also seen as spreading price pressures further among the main categories within the CPI basket.”

“Further US inflationary pressures could persist in 1H 2022 due to the confluence of a range of factors driving up prices that will take time to resolve (such as logistics bottlenecks and supply disruptions, amidst recovering demand) before turning lower in 2H. While we keep our 2022 CPI inflation at 3% and the core CPI inflation forecast at 2.5% for now, we recognise the need to upgrade the numbers if the Omicron variant of COVID-19 does materially disrupt supply chains, worsen logjams and labor shortages, all of which will inevitably add further price pressures to the US and the broader global economy.”

You may also be interested:

00:07 22.01.2022
GBP/JPY slumps back to 154.00 level as risk-off flows, weak UK data hit sterling and lower yields, safe haven demand help yen
GBP/JPY dropped 0.7% on Friday, falling from above 155.00 to around 154.00. Risk-off flows and soft UK data weakened sterling while safe-haven demand and lower global bond yields strengthened the yen. GBP/JPY fell sharply on Friday and heavy downside in the global equity market and commodity space weighed on more risk-sensitive currencies such as sterling, whilst a sharp drop in global bond yields on safe-haven demand boosted the rate-sensitive yen. Much worse than expected UK Retail Sales
23:27 21.01.2022
S&P 500 drops below 200DMA for first time since June 2020, nearing 4400 as investors spooked by poor Netflix guidance
US equities continued to fall on Friday after downbeat subscriber guidance from Netflix, whose shares dropped over 20%. The S&P 500 dropped another 1.6% towards 4400 after failing to test 4500 earlier in the session. The index is now down 5.4% on the week and has broken below its 200DMA for the first time since June 2020. US equity markets continued to sell off on Friday, as downbeat earnings from tech giant Netflix weighed on sentiment and its competitors. NFLX shares dropped over 20%
20:51 21.01.2022
NZD/USD stable in 0.6725 area after Thursday/Friday’s APac session drop, next week’s Fed meeting & NZ CPI data eyed
After dropping sharply during Thursday’s US and Friday’s APac sessions, NZD/USD has stabilised in the 0.6725 area. Next week’s Fed meeting and New Zealand CPI data will be the key events to watch. NZD/USD will be eyeing a test of the 0.6700 level. After dropping sharply late on Thursday/during early Friday Asia Pacific trade after slipping below an uptrend that has supported the price action going all the way back to mid-December, NZD/USD has stabilised in the 0.6725 area
Bonuses VIP