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Brazil's IPCA Inflation Falls Below Expectations in August
Confirmed
In Short: In August, Brazil's IPCA inflation registered -0.32%, undershooting forecasts, while the U.S. Consumer Price Index is expected to show a small decline, potentially influencing Federal Reserve policy decisions.
Brazil's IPCA inflation in August fell to -0.32%, below the expected -0.29%, according to reports. This decline in inflation is a positive sign for the Brazilian economy, though the exact impact remains to be seen.
Meanwhile, the U.S. Consumer Price Index (CPI) is anticipated to show a slight increase of 0.4% from July, with core inflation rising just 0.2% month-over-month. The report is expected to show a small decline in annual core inflation, according to the U.S. Bureau of Labor Statistics.
Federal Reserve Governor Christopher Waller expressed concerns about underlying inflation trends in a speech at the Jackson Hole Economic Policy Symposium, suggesting that if inflation remains high, the Fed might consider a rate hike.
Traders are currently waiting for the release of the U.S. consumer inflation figures before making any directional bets. The U.S. Dollar has been preserving its gains overnight, with traders cautious about placing bets until the data is released.
The U.S. Bureau of Labor Statistics will publish the August Consumer Price Index on Friday, which could mark a pivotal moment in the Federal Reserve's policy decisions. The report is expected to show a small decline in annual core inflation, according to reports.
In the weeks since Warsh's speech, the most recent jobs report for August has shown that the U.S. economy is performing well, which could influence the Federal Reserve's decisions on interest rates. The report is expected to show a small decline in annual core inflation, according to the U.S. Bureau of Labor Statistics.
Background
Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is also the world's fifth-largest country by area and the seventh-largest by population, with over 214 million people.
What's confirmed
- Brazil's IPCA inflation in August fell to -0.32%, below the expected -0.29%, according to reports. This decline in inflation is a positive sign for the Brazilian economy, though the exact impact remains to be seen.
- Meanwhile, the U.S. Consumer Price Index (CPI) is anticipated to show a slight increase of 0.4% from July, with core inflation rising just 0.2% month-over-month. The report is expected to show a small decline in annual core inflation, according to the U.S. Bureau of Labor Statistics.
- Federal Reserve Governor Christopher Waller expressed concerns about underlying inflation trends in a speech at the Jackson Hole Economic Policy Symposium, suggesting that if inflation remains high, the Fed might consider a rate hike.
- Traders are currently waiting for the release of the U.S. consumer inflation figures before making any directional bets. The U.S. Dollar has been preserving its gains overnight, with traders cautious about placing bets until the data is released.
- The U.S. Bureau of Labor Statistics will publish the August Consumer Price Index on Friday, which could mark a pivotal moment in the Federal Reserve's policy decisions. The report is expected to show a small decline in annual core inflation, according to reports.
- In the weeks since Warsh's speech, the most recent jobs report for August has shown that the U.S. economy is performing well, which could influence the Federal Reserve's decisions on interest rates. The report is expected to show a small decline in annual core inflation, according to the U.S. Bureau of Labor Statistics.
What's still developing
- The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair.
- However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.
- While readings of inflation this summer were “better than expected, they do not tell me that underlying trends have meaningfully improved,” he said in Jackson Hole, Wyoming.
- In the middle of August, U.S. crude oil was trading in the low $80s per barrel.
- Morning Rundown: Americans remember 9/11, the many obstacles to Trump’s $5k pledge, and Super Bowl favorites humbled in Australia Friday’s inflation report could mark a pivotal moment in the U.S.
- Fed Chairman Kevin Warsh also indicated in late August that he would be carefully eyeing Friday’s report.