Inflation is still not contained but not enough to stall retail leasing

Inflation is still alive and well in the U.S., and the bond markets are beginning to price maybe just one interest rate cut by the Fed in 2025. That’s the bad news.

But other than the price of eggs currently currently rising as a result of the bird flu outbreak in the U.S., the inflationary outlook is not so bad for most costs other than services, a labor factor that is not likely going to be influenced by new tariffs on imported goods.

In the most recent report this week, headline inflation rose from 2.9% to 3.0%, and core inflation, excluding food and fuel, rose from 3.1% to 3.3%; that’s not so alarming.

While core inflation (excluding food and fuel) rose, three other key measures and the Fed’s “supercore” (services excluding shelter) fell. In all cases, they remain above 3%, which it is still too high for the Fed to accept.

Read more: Eggs-istential Inflation Scrambles Bond Markets (Bloomberg)