Josh Hirt, the leading senior US economist at Pioneer Navigation, stated that he still maintains a cautious attitude towards US inflation. Due to base effects, monthly inflation data in the first few months of this year may be lower - strong data from early 2024 will make today's data appear weaker. At the same time, monthly inflation seems to be normalizing close to the level targeted by the Federal Reserve. 'This is a very positive development,' he said. Pressure on inflation from housing prices and rental pump is also starting to ease. On the other hand, Hirt pointed out the adverse factors brought about by new tariffs and wage increases. These factors may continue to push inflation higher in the coming months. Hirt expects the core inflation rate for January to be 0.27%, with overall inflation data remaining flat compared to December as the pressure from energy price pump eases.
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Vanguard Navigation takes a cautious attitude towards US inflation, and base effect may make the data weak
Josh Hirt, the leading senior US economist at Pioneer Navigation, stated that he still maintains a cautious attitude towards US inflation. Due to base effects, monthly inflation data in the first few months of this year may be lower - strong data from early 2024 will make today's data appear weaker. At the same time, monthly inflation seems to be normalizing close to the level targeted by the Federal Reserve. 'This is a very positive development,' he said. Pressure on inflation from housing prices and rental pump is also starting to ease. On the other hand, Hirt pointed out the adverse factors brought about by new tariffs and wage increases. These factors may continue to push inflation higher in the coming months. Hirt expects the core inflation rate for January to be 0.27%, with overall inflation data remaining flat compared to December as the pressure from energy price pump eases.