Forex Investment and Currency Trading

CPI inflation jumped to 8.7% yoy in February, the highest level since May 1996. The spike in CPI prices was driven by higher food prices, which rose by 23.3% yoy, while non-food prices rose by 1.6% and core inflation excluding food and energy remained at 1%. The pick-up in food price inflation was mainly due to the snow storm which drove up prices of fresh vegetables and pork. Nevertheless, persistently elevated CPI inflation is beginning to entrench expectations. Moreover, the general environment of excess liquidity and low interest rates could lead to an excess-demand led generalized inflation. In addition, import [...]

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