This research has examined the relationship between inflationary expectations and bond yield determination by using a specially constructed inflationary expectations variable, the Core Inflation Rate. In the context of six bond yield models, this studys finds that the Core Inflation Rate, when compared ...
In recent years, headline inflation has typically outpaced core inflation, as seen inFigure 1, because of the rapid rise in energy prices. In 2007, headline inflation was also driven up by a 3.9% increase in food prices. The difference between core and headline has not always been trivial—...
Inflation data help economists understand how quickly prices are going up or going down in an economy. The Fed uses inflationary data to quantify the price-stability aspect of its dual mandate. There are a few different ways to measure inflation, with the Consumer Price Index being the most ...
The Federal Reserve, when it sets its benchmark interest rate and makes monetary and economic policy, considers the effects of inflation. While members of the Fed might consider CPI, core inflation is more frequently mentioned in policy announcements. Core inflation is basically CPI but with the ...
High inflation has also doubled the number of strikes and unionizing in the past year which feeds directly into the cost of labor generating more inflation, hence the inflationary feedback loop. Strikes that cause supply chain disruptions generate supply-si...
“For more than two years, bond markets have been dominated by inflation data and the responses of central banks,” Neuberger Berman wrote in a 2025 outlook. “We think a reacceleration of inflation can be avoided next year, and that central banks will settle into the dull routine of debati...
Inflation Isn't Moderating, It is Consolidating before the Next Leg UpInflation numbers of late have been helped by the drop in fuel costs, the agricultural...
Neuberger Berman believes that inflation may remain stubborn, with revised expectations of a terminal Fed funds rate around 4%. If new fiscal policies support a continued disinflationary environment, Neuberger Berman estimates the fair value of the 10-year Treasury yield somewhere around 4.25%. It’...