The latest inflation print likely caused concerns that the Federal Reserve will leave interest rates higher for longer.

On a 12-month basis, headline producer inflation eased to 2.9 percent, higher than the market estimate. Core wholesale inflation also rose to a higher-than-expected 3.6 percent. Consumer inflation has been softening recently.

Inflation Remains Contained The SNB said inflation has increased in recent months due to higher energy prices, while price pressures elsewhere in the economy have remained limited.

the post-COVID-19 pandemic inflation surge.

Additionally, wholesale inflation excluding food, energy, and trade rose just by 0.2 percent. Wartime Inflation March’s consumer price index report suggested that underlying inflation was holding steady.

Services inflation also rose to 3.5 percent from 3 percent, while underlying inflation, which excludes volatile energy and food prices, increased to 2.5 percent from 2.2 percent.

Energy shocks feed directly into inflation in ways monetary policy cannot directly fix. What happens when financial markets are running hot, and an energy shock is pushing inflation higher at the same time?

It might depend on how inflation is measured. With Kevin Warsh taking over from Jerome Powell as chairman of the Federal Reserve, reforms are expected. One of these changes could be how the Fed tracks inflation.

“As we have said before, we will not let higher oil prices become persistent inflation,” he said.

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

Reading the Inflation Tea Leaves More consumers anticipate a pickup in inflation over the next 12 months. The one-year inflation outlook rose to a higher-than-expected 3.8 percent from 3.4 percent in February.

Inflation across the eurozone will hit 3 percent this year, up from 2.1 percent last year, and higher than the European Central Bank’s target of 2 percent. The commission predicts inflation will then fall to 2.3 percent in 2027.

Westpac expected rising fuel costs to impact inflation for the next three quarters, Bustamante said.

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.

"Underlying inflation then eases, and headline inflation falls due to declines in oil and travel prices," Hunter said.

Government bonds from Tokyo to New York City extended losses on May 18 as rising oil prices linked to the Iran war continued to push inflation fears. Benchmark 10-year ‌U.S.

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.

“I always have to point out that that was a 1970s term, at a time when unemployment was in double figures and inflation was really high,” he said.

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.

But there could be near-term inflation challenges in the next batch of reports. The Cleveland Fed Inflation Nowcasting Model estimates the March annual inflation rate will rise to 2.9 percent, fueled by soaring energy costs.

Canada’s inflation rate had fallen to 2.8 percent in June, after reaching 3.2 percent in May.Core inflation measures, which exclude “volatile” components like food and gasoline, remained stable in July, the agency said.

The current agreement between the Bank of Canada and the federal government sets an inflation target of 2 percent, which is the midpoint of its inflation-control range of 1 percent to 3 percent.

Stabilizing Forces While financial markets had already anticipated elevated May inflation readings, investors and monetary policymakers are hunting for evidence of inflation stabilizing.

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.

StatCan said food inflation rose by 4.3 percent in May after rising by 3.5 percent in April, which marked the 16th consecutive month food inflation has “outpaced headline inflation on a year-over-year basis.”

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.

The inflation data arrive days before the Bank of Japan's next monetary policy meeting, scheduled for June 15 and 16.

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.