Monday, November 18, 2013

Price Inflation Warning from UBS Economist

UBS economist Maury Harris writes:
The y/y percentage change in the core PCE deflator has decelerated by 52bps through September.
That deceleration has been the result of sharp drops in medical goods, health care services and financial services inflation. Combined, these account for almost all the deceleration witnessed over the last year. However, these now seem to be showing signs of re-acceleration. From June to September, the 3-month annualized rate of change for medical goods inflation has jumped from -0.4% to +4.8%, health care services have risen from -0.5% to +1.3%, and financial services inflation has bounced from +0.2% to +2.6%.

No comments:

Post a Comment