Economists now, on average, predict inflation will be 2.6 per cent this year, up from 2.2 per cent before the election, according to forecast aggregator Consensus Economics, due to the risk that Trump’s biggest policy pledges on immigration, tariffs and tax cuts, and cutting red tape could raise the cost of living.

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.

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.

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

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?

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.

Corporate earnings are coming in strong. Investors are also seeing the Trump administration take a less aggressive approach to tariffs than some had expected.

The European Central Bank is expected to cut interest rates this Thursday and hint at further easing ahead as policymakers, together with the rest of the world, try to process the implications of U.S. President Donald Trump’s policies for growth.

Inflation likely accelerated in December, putting pressure on the Federal Reserve to keep interest rates relatively high.

Learn how Fed meetings affect mortgage rates and what it means for borrowers. Discover trends, impacts, and expert predictions on mortgage rates.

Markets are puzzled about how inflationary President Trump’s tariffs could be, with some analysts playing down their impact on prices.

Faced with a solid economy and mounting inflation concerns, the U.S. central bank has said it will “move cautiously” on cutting interest rates.