Tuesday, 02 January 2024 12:17 GMT

Inflation In Focus As Markets Remain Resilient


(MENAFN- Mid-East Info) By Daniela Hathorn, senior market analyst at Capital



This week CPI and PPI are going to be firmly in the spotlight as markets are increasingly focused on whether inflation is proving more persistent than expected, particularly as energy prices remain elevated and AI-related investment continues to create strong demand for labour, semiconductors and industrial inputs. Last week's jobs data alone may not justify further tightening, but it strengthens the argument that the Fed can afford to remain restrictive. With expectations for a rate hike by year-end rising sharply over the past week, inflation data now has the potential to either reinforce or challenge that repricing.

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Past performance is not a reliable indicator of future results.

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