UBS On-Air: Paul Donovan Daily Audio 'More on inflation (and deflation)'

US consumer price inflation details continue to suggest that US rate cuts are overdue. Harmonized inflation slowed again (to 1.85% y/y). Durable goods prices are falling at the most aggressive rate in two decades. Most sectors experience deflation somewhere in the US. Investors should remember that the slowing of the fantasy owners’ equivalent rent has no direct effect on consumer spending power.