Slowing US inflation

We get more evidence out of the US that inflation is indeed slowing. One example is the housing market where latest data from November suggests prices are down for a fifth month in a row and now off 2.5% from a peak in June last year. Here rising mortgage costs are starting to bite. Another important example are US employment costs: the employment costs index, a preferred measure of the Fed,  came out yesterday. It increased only 1% in the fourth quarter at a slower-than-expected pace. As we believe Fed’s decisions on rates will remain data dependant, odds are increasing the Fed will become less hawkish.