The consumer inflation data (CPI, its acronym in English) of the United States, released last Tuesday (13), fell like a bucket of cold water in the financial market.
The 0.1% rise in the indicator surprised investors, who were optimistic about a possible slowdown in US inflation. The expectation was for a fall of 0.1%.
In the annual comparison, the CPI — equivalent to the IPCA here — was 8.3%, while investors expected a sharper drop, around 8.1%.
A closer reading of the indicator’s components shows that inflation remains persistent and spread across the services sector, raising bets that the Federal Reserve (Fed, the US central bank) will be more aggressive at next week’s monetary policy meeting.
The interest rate is expected to rise by 0.75 pp, although some more pessimistic economists are already talking about a 1 pp increase. Friday (14) — there should be some calibration regarding expectations about interest rates there.
In response to the negative surprise, Tuesday marked one of the worst days on Wall Street in two years, with sharp drops in the benchmark Dow Jones and Nasdaq indexes. In Asia, stocks fell following the tone of Wall Street, while Europe tried to rehearse a recovery, remaining stable in this morning’s period.
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*Posted by Tamara Nassif
Source: CNN Brasil
