U.S. inflation in April rose faster than expected. The core Personal Consumption Expenditures index (PCE) — the preferred measure of inflation for the U.S. Federal Reserve — increased by 0.7 percent last month, the highest jump since late in 2001. Looking on from the outside, Brazilian markets fear potential knock-on effects.
However, the reactions from the Fed and the Joe Biden administration suggest that a hike in prices is not necessarily a bad thing, as consumer price inflation has been at very low levels for years. Some say it is a direct result of the U.S.’s steady vaccination campaign which is pushing the country back to a sense of normalcy — as more people are immunized, many see it as a good opportunity to go out and spend money.
Others blame it on supply chains running amok as a temporary whiplash effect of the pandemic.
Year-on-year...
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