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The Morning View: June 10, 2021

Announced this morning, the Consumer Price Index increased 0.6% in June, slightly higher than expected, and is 5.0% higher on annual basis, the highest annual figure since 2008.  Prices of Used Cars and Trucks were again strong for the month, while Energy prices were flat.  The core rate, which excludes prices for food and energy, increased 0.7% in May, also more than estimates, and is up 3.8% on an annual basis, which is the highest annual figure since 1992. Meanwhile, Initial Jobless Claims were 376,000 for the week ending June 5th, slightly above forecasts, but continue the trend lower from the previous week.  Overall, strong inflationary data persists for the second month in a row and the annual figures are at levels not seen in some time.  Reflation appears to be broadly occurring, but prices for lumber and copper are abating from recent highs, continuing the debate on transitory versus long-term price pressures.  In addition, the trend lower in jobless claims shows the labor market is healing, which may be a faster process than most expect considering seasonality effects and the re-opening of the economy.  In all, bond yields ticked higher following the release of the data and equity markets are mixed 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.