Daily Brief – US Consumer Price Inflation

US Consumer Price Inflation

With January CPI coming in at 0.2% and annual inflation at 2.4%, the Federal Reserve will not be feeling undue pressure to cut interest rates for the time being. With inflation expected to increase this year as tariffs feed through and the effects of a depreciating USD are felt, despite the political pressure to cut interest rates, there are good arguments for leaving rates as they are at present.

EUR/USD 1.1864.

Switzerland 

With a population of 9.1 million at the end of 2025, Switzerland is due to vote on a proposal from the immigration curbing political right to limit the population to 10 million by 2050. Needless to say, the counter argument is that Switzerland has traditionally derived 30% of its population from abroad and anyway, many of those immigrants do jobs that the Swiss do not wish to do themselves. The pragmatic Swiss have however arrived at the nub of the issue: there is a finite number of people that the small country can house, care for, educate and police without negatively impacting Switzerland’s quality of life.

GBP/CHF 1.05.

Heathrow Airport

It has taken a Dane in the shape of newish Heathrow Airport CEO Thomas Woldbye to debunk the case for a third runway and simultaneously to explain why Heathrow airport feels crowded. Brits walk on the left and most of the rest of the world walk on the right with the result that they keep on bumping into each other. In short, Heathrow is not overcrowded, it’s the passengers that make it feel like that. That’s all right then. Case dismissed. 

GBP/USD 1.3628.

British Pound

A poor performance from Sterling marking the worst week for more than 3 months on the back of flatlining UK growth of just 0.1%, despite Chancellor Reeves’ efforts to talk it up, political infighting in Westminster with red on red action inside the government with the Conservatives and Reform needing to do little to stir the pot, and lastly positive EUR market sentiment. All that adds up to the Pound buying less in Europe and making those fast impending summer holidays more expensive.

EUR/GBP 0.8716.

Born in the USA

This day in 1985 Bruce Springsteen made it to Number One in the UK with this album his first in the UK which had 7 out of 10 songs that went to the top of the Singles Charts. Born in the USA is also BS’s most successful album ever although in the light of recent social media exchanges with POTUS it would seem that the Boss has cooled on the USA that is the USA of today.

Born down in a dead man’s town
The first kick I took was when I hit the ground
End up like a dog that’s been beat too much
‘Til you spend half your life just to cover it up now

Born in the USA
I was born in the USA
I was born in the USA
Born in the USA, now

Got in a little hometown jam
So they put a rifle in my hands
Send me off to a foreign land
To go and kill the yellow man

Born in the USA
I was born in the USA
Born in the USA
I was born in the USA

Come back home to the refinery
Hiring man said, “Son, if it was up to me”
Went down to see my V.A. man
He said, “Son, don’t you understand, now?”

Oh, yeah
No, no
No, no, no

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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