Citigroup Warns Bond Traders About Misinterpreting Inflation
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According to Citigroup, the bond market has misunderstood inflation. Despite lower annual inflation and higher unemployment rates, inflation expectations for the next few years are higher than they were at the beginning of 2021. The bank’s expert also predicts that core inflation, which doesn’t include volatile food and energy prices, will likely fall below 0.4% m/m in May for the first time since November, which goes against economists’ predictions. [/s2If]
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