CHILE: Electricity Tariff Hike To Drive Jan Inflation Higher
Feb-06 17:06
- January CPI inflation data are due tomorrow, with headline prices expected to rise by 1.0% m/m on the back of another hike in electricity tariffs, following a 0.2% m/m decline in December. In annual terms, headline inflation is seen rising to 4.8% y/y, according to the median estimate of surveyed economists, from 4.5% the month before.
- JP Morgan projects January CPI at 0.85% m/m, with about 20bp in contribution from electricity prices. They say that this should be the last adjustment of electricity tariffs, which alone added 100bp to headline inflation in 2024.
- BBVA says that relative to market expectations, the risk may be skewed to the downside, as inflation in services and goods may have decelerated due to weak domestic demand and greater economic slack. However, important unknowns remain, namely the passthrough from recent wage hikes and accumulated CLP depreciation. Regardless, the market and the BCCh will be keeping a close eye on CPI ex-electricity for the policy impact. By H2 2025, substantial base effects are likely to support a faster reversion in the headline and ex-volatiles measures.
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US: Trump Says He Is Very Serious About Mexico/Canada Tariffs
Jan-07 17:05
US President-elect Donald Trump, speaking at his Mar-a-Lago presser, has stated he is "very serious" about imposing "substantial" tariffs on Canada and Mexico, noting that his incoming administration "wants to get along with everyone" but it "takes two to tango".
- Trump said: "We'll impose new tariffs so that the products on our stores will once again be stamped with those beautiful words: Made in the USA, and we are not treated well, as you know, by Canada. Canada is subsidized to the tune of about $200 billion a year, plus other things...something's going to have to be done. Same thing with Mexico. We have a massive deficit with Mexico, and we help Mexico a lot."
- Trump added: "... Mexico has to stop allowing millions of people to pour into our country. They can stop them. And we're going to put very serious tariffs on Mexico and Canada, because Canada, they come through Canada too, and the drugs that are coming through are at record numbers, record numbers. So we're going to make up for that by putting tariffs on Mexico and Canada, substantial tariffs."
FED: US TSY TO SELL $90.000 BLN 8W BILL JAN 09, SETTLE JAN 14
Jan-07 17:05
- US TSY TO SELL $90.000 BLN 8W BILL JAN 09, SETTLE JAN 14
FED: US TSY TO SELL $95.000 BLN 4W BILL JAN 09, SETTLE JAN 14
Jan-07 17:05
- US TSY TO SELL $95.000 BLN 4W BILL JAN 09, SETTLE JAN 14
