Investment - Articles - US Inflation is a continuing conundrum

 Isaac Stell, Investment Manager at Wealth Club, commented: “Tariff induced inflation has yet to rear its ugly head. Annual US inflation remained stable in July, while month-on-month inflation fell to 0.2%.

 Despite the reassuring headline numbers, core inflation (which excludes energy and food) rose month-on-month to 0.3% with medical care, airline fares and used cars and trucks showing an increase.

 Up until now the Federal Reserve has been in wait and see mode, pausing to find out the effect of Donald Trump’s tariff onslaught. In the absence of any evidence that inflation is picking up, the Fed members who voted in favour of cutting rates may feel further emboldened while those on the fence could feel more inclined to swing behind a move to cut interest rates.

 These are mixed numbers though, and if investors were looking for certainty about the future direction of interest rates they’re unlikely to find it here.”