From our colleagues at our sister company, Argent Trust:
Announced this morning, the Consumer Price Index increased 0.1% in March, slightly lower than expected and lower than the previous month. It grew 5.0% on an annual basis. Monthly prices for Tobacco and Smoking products, up 0.8%, were relatively strong, while monthly prices for Utility gas service (natural gas), down -7.1%, and Gasoline, down -4.6%, were weak. The core rate, which excludes prices for food and energy, increased 0.4% in March, as expected and slightly less than the previous month. It increased 5.6% on an annual basis, a slightly higher annual level than the previous month.
Overall, inflation measures came in as expected, with lower monthly increases than the previous period. The results reaffirm the overall move lower we have seen in inflation since last summer. However, the annual figure for the core rate moved up to 5.6%, in the wrong direction and still more than double the Fed’s 2% target. Given these results, the Fed likely wants to continue keeping policy tight until inflationary measures show more progress toward their goal. The company commentary and earnings revisions in upcoming quarterly results will be a key component for markets in the coming weeks.
In all, the 10-year US treasury yield is lower following the report and equity futures are higher as we head into the market open.
This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice, and does not take into account all the circumstances of each investor. Forward-looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.
