Consumer Prices

Get Back To Work Mr.Draghi - Deflation "Monster" Spreads Across Europe

Today's current inflation data dump from across the European nations appears to confirm forward inflation expectations trend (plumbing new record lows). With a considerably bigger than expected decline in prices , pushing Germany, Spain, and France back into deflation, pressure is mounting on Mr.Draghi. As one EU economist exclaimed, "the data send a clear message to the ECB and the only question that remains now is how bold action would be." Save us Mario from spending less on the things we need...

Now It's China's Turn To Crash: Shanghai Plunges 6.4% Overnight

In recent weeks Chinese stocks remained relatively resilient, levitating quietly day after day. That all changed overnight when the Shanghai Composite plunged by 6.4% with the drop accelerating into the close. This was the biggest drop in over a month and was big enough to almost wipe out the entire 10% rebound from the January lows in one session.

Peter Schiff Warns "The Fed's Nightmare Scenario Is Becoming Reality"

Once markets figure out that the Fed is all hat and no cattle when it comes to fighting inflation, the bottom should drop out of the dollar, consumer price increases could accelerate even faster, and the biggest bubble of them all, the one in U.S. Treasuries may finally be pricked. That is when the Fed’s nightmare scenario finally becomes everyone’s reality.

Fed Doves Cry As Core Consumer Prices Jump At Fastest Pace Since August 2011

This must be trasitory, right? Core Consumer Prices surged 0.3% MoM - the biggest jump since August 2011 - and is up 2.2% YoY (the most since June 2012). Furthermore, Shelter costs surged 3.7% YoY - the most since October 2008. We assume this will be ignored for a data-dependent Fed that needs to keep the easing dream alive (as long as stocks are off the highs)...

Biggest Short Squeeze In 7 Years Continues After Bullard Hints At More QE, OECD Cuts Global Forecasts

Just when traders thought that the biggest and most violent 3-day short squeeze in 7 years was about to end a squeeze that has resulted in 3 consecutve 1%+ sessions for the S&P for the first time since October 2011, overnight we got one of the Fed's biggest faux-hakws, St. Louis Fed's Jim Bullard, who said that it would be "unwise" to continue hiking rates at this moment, and hinted that "if needed", the most natural option for the Fed going forward would be to do further Q.E.

China Food Prices Soar Most Since 2013 As Producer Prices Hit 47th Straight Month Of Deflation

Another month and another massive deflationary print for Chinese Producer Prices. Year-over-year, PPI dropped 5.3% ('better' than the 5.3% drop expected and the 5.9% plunge last month) making this the 47th month in a row of deflation with mining's collapse picking up again to -19.8% YoY. On th emore worrisome side, CPI rose 1.8% YoY, below expectations of +1.9% but still the hottest consumer price rise since August (and this was amid the greatest credit binge in history) driven by the biggest jump in food prices since 2013.

Hilsenrath: Yellen's Comments Have A "Downbeat Undertone"

The only question that matters today: is a "downbeat undertone", aka bad news, good news for stocks once again, and will the market relapse to its old "bad news is great news" regime, or will it take advantage of today's brief European bank euphoria to sell the rally as it has throughout all of 2016?

Hyperinflating Venezuela Used 36 Boeing 747 Cargo Planes To Deliver Its Worthless Bank Notes

Recently we joked that it is unclear just where Venezuela will find all the paper banknotes it needs for all its new currency.  And, as if on cue, the WSJ answered. As it turns out we were not the only ones wondering how the devastated "socialist paradise" gets its exponentially collapsing paper currency, which in just the past month has lost 17% of its value. The answer: 36 Boeing 747s.

Negative Interest Rates Already In Fed’s Official Scenario

"The severely adverse scenario is characterized by a severe global recession, accompanied by a period of heightened corporate financial stress and negative yields for short-term U.S. Treasury securities.... As a result of the severe decline in real activity and subdued inflation, short-term Treasury rates fall to negative ½ percent by mid-2016 and remain at that level through the end of the scenario."

This Question Should Not Be A Difficult One To Answer

Ten years ago, all this would have been written off as the stuff of an insane mind or conspiracist. Now, it is just normal and economists would have you think it the only option. At what point do we accede back to logic and rational thought?

Global Stocks, Bonds Jump On BOJ NIRP Stunner; Rally Fizzles After Crude Fades Gains

It is safe to say that nobody expected the BOJ stunner announced last night, when Kuroda announced that Japan would become the latest country to unleash negative interest rates, for one simple reason: Kuroda himself said Japan would not adopt negative rates just one week ago! However, a few BIS conference calls since then clearly changed the Japanese central banker's mind and as we wrote, and as those who are just waking up are shocked to learn, negative rates are now a reality in Japan. The immediate reaction was to send the USDJPY surging by nearly 200 pips, back to levels seen... well, about a month ago.