US Inflation Cools Down

US inflation is one of the most watched economic numbers across the globe. That’s because it decides the further trajectory of Fed actions, which in turn determines government bond yield across the globe and also actions by different central banks. On that front, there is good news as the consumer price index in the US increased by 5% in March. It was 6% in February. Now, at 1 place inflation is ebbing down while on the other hand, recent economic data in US suggests there is some softness in the economy. Nonfarm payrolls in the US increase by 236,000. This is smallest increase since 2020 December. Even annual growth of hourly wage came at 4.2% which is the lowest increase since 2021 June. With banking lingering crises there is anticipation that Fed may not be very aggressive in rate hike. This is positive news for the global economy and markets.