Despite a relatively calm week in global markets, the focus was on higher-than-expected inflation figures.


In brief:

• Inflation data: The Personal Consumption Expenditures (PCE) index and February Consumer Price Index (CPI) print both exceeded forecasts, igniting concerns about the persistence of disinflationary trends.
• Bond Market Reactions: Bond markets showed a more pronounced response to the inflation news compared to equity markets. We saw U.S. rates rising by nearly 20 basis points and Australian rates following suit. 
• Market Outlook and Assumptions: While markets anticipate an easing cycle for short-term rates, there's a growing sentiment of stagflation due to declining growth expectations coupled with rising inflation forecasts.

Get access to the charts: https://www.investsense.com.au/industry-articles/a-flat-market-despite-surprising-inflation-data?utm_source=Podcast&utm_medium=Mar_16

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