CPI numbers came in looking pretty week, especially given the FED’s view that there may be inflationary pressure around the corner. Core inflation YoY was up very little at 1.8% from last month’s 1.7%. But the YoY inflation rate came in negative 0.1% down from last month’s 0.0%. Negative YoY inflation has not been seen since late 2009. This seems to me to give more evidence, along with this month’s low non-farm payroll, to a possible slowdown of the economy and certainly doesn’t invite to think the FED will be hiking rates in June. Unless we see a big turnaround in next month’s data, which I would see as unlikely, looks like a rate hike will be on hold for now.

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