Our Scans · (FS.6.07) Inflation · Weekly Summary

• [New] Between 2013 and 2023, electricity prices closely tracked inflation, but we expect increases in electricity prices to outpace inflation through 2026. EIA - Energy Information Administration
• [New] The rise in inflation expectations can be viewed as a Trump bump as consumers are concerned that US tariffs will lead to higher inflation. investing.com
• [New] The SNB has indicated that it will continue to lower interest rates to respond to the Swiss franc's appreciation and falling inflation. investing.com
• [New] In the short to medium term, tariffs will likely drive inflation higher and significantly disrupt the global supply chain, threatening many U.S. jobs at manufacturers, wholesalers, and retailers. Forbes
• [New] Benchmark US stock indexes erased their 2025 losses Tuesday on signs trade tensions are easing and after a report showed US inflation was softer than economists forecast. www.swissinfo.ch
• [New] AFRM is reliant on consumer spending, which remains under pressure from persistent inflation and its borrowing costs will remain high due to the Federal Reserve's unwillingness to cut interest rates. 24/7 Wall St.
• [New] The UK has faced a challenging economic environment over the past few years, with inflation rates hitting historic highs and energy prices soaring due to global disruptions. NeBIO
• [New] With US core inflation stubbornly above 2%, any lingering tariff could keep price pressure alive and complicate the Federal Reserve's path to rate cuts. Market Business News
• [New] The UK rate of inflation as measured by the consumer price index (CPI) stands at 2.6% in the year to March, but recent energy price hikes and other domestic bill increases may mean that inflation will rise again in the year to April. Money to the Masses
• [New] As the UK looks ahead to more growth in 2025, the year could bring renewed challenges from a higher pace of inflation, increased trade frictions, and a heightened state of economic uncertainty. KPMG
• [New] While a trade war could hit economic growth, it could lead to lower inflation in the UK over time as countries such as China look to divert cheap goods originally bound for America. BBC News
• [New] Looking ahead, the Bank of England is projecting a temporary spike in inflation to around 3.7% in Q3 2025, driven by rising energy costs and regulated price increases, before easing toward its 2% target by 2027. BlackRock
• Going forward, the US's high valuation could ease more broadly as the narrative of US exceptionalism has faded, with the US likely to confront slowing growth and rising inflation due to tariffs. DBS
• US Fed Chairman Jerome Powell said that he is in no hurry to cut interest rates due to the high level of uncertainty in the US economy, along with the inflation risk imposed by the high tariffs on imports. Mint
• Fed policymakers cautioned that the risks of higher unemployment and higher inflation have risen as they opted to maintain the benchmark interest rate for the third time in a row. The Guardian
• Higher inflation could well tie the Fed's hands on how far it is willing to cut rates, though it could also look through what is essentially a supply shock and focus on weakening demand in the US economy. Pictet Asset Management
• The US is at risk of stagflation, where inflation increases, and economic growth slows. Carrara Capital - Access a World of Opportunity
• Experts expect the Fed to hold rates steady in response to inflation and economic uncertainty. Bankrate.com

Last updated: 20 May 2025