Lower rates would indeed risk kicking off a second wave of inflation, not immediately but within a year or two.

Estimates from the Cleveland Fed Inflation Nowcasting Model suggest the annual PCE inflation rate rose to 2.8 percent. Core PCE inflation is expected to come in at 2.9 percent.

As Milton Friedman famously argued, this phenomenon is known as inflation.

The headline inflation rate reached 1.9 percent in August, nearly aligning with economists' forecasts that inflation would increase to 2 percent, up from 1.7 percent in July.

U.S. inflation slowed in November, with the Consumer Price Index rising 2.7 percent from a year ago—with core inflation also cooling. A $7 million SNAP benefit scheme was busted in Boston on Thursday.

Commentary Last Tuesday, the Federal Open Market Committee (FOMC) minutes from its December meeting were posted, signaling that at least one additional key interest rate cut is anticipated if inflation cools in the upcoming months.

Invest in Inflation-Resistant Assets Certain assets can help you get high returns without losing money during inflation.

From each, we can expect inflation will continue to decline. There is another reason to think inflation will fall in the months ahead.

They also create the conditions for more inflation down the line. It could be a year or two but it will eventually come. This is the danger. The Trump administration needs to put a priority on killing inflation.

The nation received a summer update this week on America’s inflation situation.

Plus, they're designed to keep pace with inflation based on the consumer price index. TIPS can add inflation defense as well as volatility protection to your portfolio.

Estimates suggest the annual inflation rate will hold steady at 3 percent, according to the Cleveland Federal Reserve's Inflation Nowcasting model.

State of Inflation In December, the annual inflation rate held steady at 2.7 percent, and core inflation came in at 2.6 percent.

The checks, which began going out last week, are meant to offset inflation.

The trend line of lower inflation that we saw just after inauguration is no longer with us. That turned out to be a brief illusion. The great worry now is that we might be headed into a second wave of inflation.

Rent inflation remained sticky at 4.2 percent amid low vacancies, while construction costs stayed elevated due to labour shortages and materials inflation.

Bessent rejected claims that tariffs were driving recent price pressures, pointing instead to services costs and citing new data showing flat imported-goods inflation.

Bessent added that recent data showing flat imported-goods inflation undercut claims that tariffs are driving price increases, saying the latest inflation uptick is coming from services, not trade policy.

For years, we’ve heard that inflation was merely transitory and somehow was always “cooling” despite obvious evidence of the worst inflation in 40 years at least. Now that Trump is in charge, the tune has entirely changed.

Wednesday’s FOMC statement said, “Inflation remains somewhat elevated.” This is perplexing since all three inflation measures – the CPI, PPI and PCE – are trending lower and, except for gold, commodity prices are falling.

Tariffs and Inflation Economic observers are still determining whether Trump's tariffs are showing up in the inflation data.

Commentary Inflation numbers came out on Dec. 11. For once, we got some honesty from the mainstream media. “Growing inflation poses challenges for the Fed,” The Wall Street Journal wrote.

The report also expects there to be an easing of inflation for services, excluding shelter, over its projection horizon.

Painting the Inflation Picture Overall, the inflation picture appears to have stabilized in the United States. The bureau reported on Jan. 13 that the consumer annual inflation rate was unchanged at 2.7 percent—in line with market forecasts.

Economists had anticipated that 12-month consumer inflation would remain unchanged at 3 percent, while producer inflation was expected to grow at a monthly rate of 0.3 percent.

Understand the Real Yield The real, or inflation-adjusted, yield from TIPS is a gauge of future inflation expectations.

Inflation Still Too Hot With inflation picking up again, price pressures remain too strong for the RBA to justify a rate cut.

It is inaccurate for media constantly to claim that tariffs will feed inflation. The main hope of the attempt to control inflation is to avoid a second and third wave such as we saw in the 1970s.

January’s annual PCE inflation rate is expected to be 2.6 percent, based on the Cleveland Fed’s Inflation Nowcasting Model. Although prices are still rising, the pace of inflation is far lower than what was observed from 2021 to 2023.

The latest producer price index, a pipeline inflation indicator that tracks price changes at the wholesale and producer level, rose by just 0.3 percent. Core producer inflation edged up by just 0.1 percent.