A Morgan Stanley note from Friday ICYMI, saying that the data on inflation that was out during the week, for US CPI and PPI “point to a quicker progression in the disinflationary process”. And add that the slower momentum is “notable”.
Morgan Stanley have thus lowered their forecast for core PCE inflation in 2023 and 2024:
- 3.3% 4Q/4Q this year (from 3.4%)
- and 2.2% in 2024 (from 2.3%)
Separately MS say that the Auto Workers strike adds to uncertainty in the economy and that will keep the Federal Open Market Committee (FOMC) on hold for the rest of 2023.
The FOMC statement is due on Wednesday at 2pm US Eastern time:
This article was written by Eamonn Sheridan at www.forexlive.com. Source