The Morning View: August 12, 2012

BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager

Announced this morning, the Consumer Price Index increased 0.6% in July and has increased 1.0% on an annual basis, both more than expected.  During the month, prices for Gasoline and Transportation Services contributed to the increase, while Food at Home prices decreased.  The core rate, which excludes food and energy prices, also increased 0.6% in July and has increased 1.6% on an annual basis, up from 1.2% in the previous month. Overall, while prices did pick up a bit in July, inflationary pressures remain muted in the current environment.  The price changes reflect consumers getting out a bit more and eating at home less, but the economic re-opening process is still in flux.  As a result, the Federal Reserve is not likely to change their accommodative stance toward the economy.  In all, bond prices are slightly higher following the inflation data release and equity futures are higher heading into the market open. 

This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice, and does not take into account all the circumstances of each investor. Forward-looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.