The Weekly Brief - J.P. Morgan Asset Management
CLOSE

The Weekly Brief

Contributor Global Markets Insights Strategy Team

US headline and core inflation for March both moved above 2% year on year (y/y). The headline index grew by 2.4% (y/y) and core inflation reached 2.1% (y/y).

This increase can be partially attributed to the fading effect of lower mobile phone service costs, which fell significantly this time last year. Despite a marginal drag from lower energy prices last month, this inflation release suggests that as the labour market tightens, inflation could continue to edge higher. The Personal Consumption Expenditure index, which is the US Federal Reserve’s (the Fed’s) preferred measure of price increases, could therefore reach their 2.0% target soon. This, combined with fiscal tailwinds, should lead to a further three rate hikes by the Fed in 2018 – one hike more than the median Fed dot plot currently forecasts.

US headline and core inflation both above 2%
%

Source: BLS, Thomson Reuters Datastream, J.P. Morgan Asset Management. Data as of 13 April 2018.

The Weekly Brief (16 April 2018)

Related products

JPM Global Macro Opportunities Fund
Leveraging global macro themes to generate performance. This fund targets positive returns in various market conditions by capitalising on the opportunities created by economic trends within a risk-controlled framework.
JPM Multi-Asset Income Fund
Using a flexible approach that seeks only the best income opportunities from around the globe, our Multi-Asset Income Fund aims to provide investors with a consistent and attractive income stream and the opportunity for capital growth.
JPMorgan Global Growth & Income plc

The JPMorgan Global Growth & Income plc seeks out strong long-term returns by investing in a best ideas, high-conviction portfolio from across the world's stock market. The Company also delivers predictable quarterly income distributions which are set at the beginning of its financial year.


Important information

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professional advisers, if any investment mentioned herein is believed to be suitable to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields is not a reliable indicator of current and future results.

J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is issued in the United Kingdom by JPMorgan Asset Management (UK) Limited, which is authorized and regulated by the Financial Conduct Authority, Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.