Market Wire: US inflation decelerates, lowering rate expectations and lifting market sentiment
A 1.8 percent month-over-month jump in energy prices – fuelled by a 4 percent recovery in the gasoline sub-index – added to increases in food and other categories in supporting the all-items index. With highly-volatile food and energy components excluded, core prices rose 6.3 percent year-over-year, up 0.3 percent over the prior month. This was well below the 0.5 percent increase markets had expected. As expected, shelter costs kept rising, increasing 0.8 percent in the month as rents and owners equivalent measures moved up. Overall non-energy services inflation turned more mixed, with transportation up 0.7 percent, while medical care costs...