After experience of Biden administration, fighting price rises likely to be political priority over targeting economic growth

Reports of the demise of US inflation have been greatly exaggerated. Today on the show, Rob Armstrong and Aiden Reiter discuss the continuing high numbers and what the Fed might do about it this year. Also they go long Ohio State and short New Year’s resolutions.

Unhedged feels only a little reassurance. We thought inflation was all but beaten four months ago, and were wrong; once burnt, and all that. Despite this good report, however you look at it, core inflation is closer to 3 per cent than 2 per cent, and the trend is sideways, not down.

And almost as expensive due to years of cash flowing in to escape the inflation in neighbouring countries such as Argentina. What’s nicer than an ocean-view apartment to preserve your wealth in real terms?

Simply sign up to the Global Economy myFT Digest -- delivered directly to your inbox. Central banks around the world are expected to lower borrowing costs as global inflation eases from the multi ...

Yields down, stocks up. After government bonds sold off sharply the week before, buyers were back after favourable inflation prints calmed investors’ nerves in the US and UK in the past week. As far as returning to normal it might be as close as we are going to get for some time.

Economists polled by Reuters expect Wednesday’s US consumer price index to show inflation of 2.8 per cent in December, up from 2.7 per cent a month earlier. They anticipate that core inflation, which strips out volatile components such as food and energy prices,

The battle of expectations continues. Republicans believe inflation will fall to 0.1%, while Democrats foresee 4%.

Let’s face it, while they are intellectually fascinating, there are no good news stories about bond markets. It’s always “someone’s defaulted”, “someone’s crashing the economy”, or some other such awfulness.

Wall Street has been seesawing for weeks as traders tear up their forecasts for what the Fed will do with interest rates in 2025. A further easing would boost the U.S. economy and prices for investments, but it could also give inflation more fuel.

Shares in UK bakery chain Greggs fell more than 10 per cent on Thursday with the company blaming weak consumer confidence for a slowdown in sales.

Rachel Reeves is facing a major headache with the UK’s economy right now, but it could be about to turn into an international migraine. As Donald Trump’s inauguration begins his second term in office,