US Inflation Revisions Are Damp Squib, Canadian Jobs Beat
Revisions to seasonal adjustments used in the US consumer price index helped push bond yields lower and boost equity prices this morning. The annualized change in headline inflation over the last six months of 2024 was reduced by 0.2 percent, while core price growth remained unchanged. This combination should leave monetary policymakers unmoved, but will also alleviate hedging requirements among market participants who had feared a repeat of early-2023’s revisions. All-items consumer price index, monthly % change The Canadian economy generated more jobs than anticipated in January, but wage growth slowed sharply, helping firm market expectations for an imminent pivot...