US core inflation has picked up over the past year.... or has it? It depends which measure you use. Core CPI is back in line with average, but the Fed's preferred measure, core PCE, remains below the Fed's 2% target which makes forecasting US core inflation hard.
Following a stark market response to what was an unexpected result, markets remain volatile. Political uncertainty is at record levels in the UK which impacts business investment. See my interview on Bloomberg TV's European Close show yesterday where I discuss the market impact of the Brexit vote, how imported inflation could hit consumption, and which areas of the market have been worst hit, including sterling and UK property.
A new look at old data suggests that buy-to-let has been the 'only game in town'" in the UK property market for the last 15 years. Tighter regulatory and fiscal policy threatens to disrupt that growth, with potentially significant consequences for the whole residential property market.