UBS On-Air: Paul Donovan Daily Audio 'Prices palooza'

It is a sad comment on the quality of communication by the US central bank that a single US consumer price inflation number can have so much sway over policy expectations. Single data points should not be relied on to this extent. If today’s data does not produce a US rate hike in September, disinflationary forces may keep rates on hold this year. If rates are raised, a second rate hike would probably follow.