The Day at a Glance | September 14 2021

The Top

*Inflationary pressures become more moderate in the United States.

*Without an integral tax reform, the increase in government revenue will not be enough in the presence of increasing spending pressures: CIEP.

*China implements quarantine in Xiamen city due to the Delta variant`s spread.

*The recovery in employment in Latin-America could be slower given the high levels of indebtedness among corporations: World Bank.

Economic environment

Inflation slows down in the United States. The most recent inflationary figures in the United States confirmed a 0.3% monthly increase (vs 0.4%e.) in prices during August to set the annual rate of inflation at 5.3%. This is the lowest monthly figure of inflation since January and backs the idea of inflation being temporary in the country. Underlying inflation barely increased 0.1% month over month (vs 0.3%e.) and slowed down to an annual 4% (vs 4.2%e.). Prices of used automobiles (-1.5% monthly) and transportation services (-2.3%), which had caused an important rise in the price index in previous months, once again decreased for a second consecutive month. The largest increases were seen among gasoline prices (2.8%) and new vehicles (1.2%), but the rest of the components logged moderate growth, with the larger part of merchandise increasing 0.3% during the month and services recording no change (0%). The data grants more confidence regarding a scenario of temporary inflation, which would not force any sudden action on behalf of the FED. After these figures were made public, the dollar receded and volatility in markets decreased; despite the fact that the New York FED confirmed that inflationary expectations among consumers had reached their highest level since 2013: The average expectation for inflation among consumers this year is set at 5.2% and 4% for the next 3 years.