Macro Economic Mashup: Three Key Inflation Measures Move Higher
Markets are down slightly this morning after macro economic news releases for CPI and inflation measures in India and the Eurozone:
Consumer Price Index: CPI Creeps Higher on Energy and Gas Increases
Although food, energy and gas prices have risen, the Labor Department said core consumer prices rose only 0.1% excluding food and energy. This measure was the same as last month. The actual overall CPI release was 0.5% month-over-month (including food and energy). The gasoline index rose sharply month-over-month. The overall CPI expectation was for 0.4%. Thus, today’s release was slightly worse than expectations.
India’s December Inflation: A Sharp Rise over November
The rate of inflation in India for December rose to 8.4% from Novembers reading of 7.5%. India’s markets sold off following the news. The expectation is India’s government will need to tighten rates in order to fight off a growing inflationary problem.
Eurozone Inflation: The Probability of a 2011 Rate Hike Grows
Inflation in the Eurozone rose 2.2% year-over-year and 0.6% month-over-month, climbing to a 26-month high in December. Yesterday, ECB President Jean-Claude Triche gestured at taking the necessary measure to battle and drastic price increases.