US Inflation Remains Stable


The consumer price index rose by 0.4%, and Core CPI by 0.1%. CPI was expected to rise by 0.4%. Core CPI held expectations for a rise of 0.2%.

The dollar retreats after the figures were published. EUR/USD is around 1.3120, and USD/JPY is falling towards the 83.50 line.

In the last FOMC Statement, more emphasis was given to rising prices. Oil prices are high, and this is weighing on the US consumer. The Fed is more focused on Core CPI though.

On a yearly basis, inflation stands at 2.9%. Core inflation is at 2.2%, a bit above the Fed’s new target of 2%, but not too far away.

All in all, it seems that price rises are better seen in oil prices rather than other products. “Second round effects” aren’t seen, not yet. Deflation isn’t a threat anyway, so QE3 isn’t getting closer either.

The current status quo is likely to remain.

US Industrial production and Capacity Utilization Rate will be published soon, at 13:15 GMT.

The University of Michigan’s consumer sentiment is due for 13:55 GMT. See how to trade this event with EUR/USD.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.


  1. Central Bank News on

    Inflation is likely going to be a pretty tough obstacle for further quantitative easing… sterilized QE may be an option, but then you’re only chipping away at things at the margin

  2. Thanks for your comment. I certainly agree: sterilized QE may be interesting, but I can’t really see how it helps.

  3. Pingback: Southie parade, Jobless claims & Eurozone surplus | Invest Together | Currensee's Investing Blog