Despite a robust economy and tight labor markets, inflation is still low and steady. These data provide some relief for the Federal Open Market Committee.

Inflation hawks may be eating crow today. Despite their fears of tight labor markets and a strong economy, inflation is only creeping, not accelerating. I don't think that this report assures that the Fed tightening cycle is over, but I wouldn't be surprised to see rising market expectations of a rate cut. With most prices in check and energy prices easing, this report is about as good as it gets.

Slowing income gains and increased uncertainty have savaged consumer spending. This has removed the only major support for the economy, insuring the recession will last, at least, into early next year.

We don't see inflation shooting up because of what has happened in the labor market. I have a fairly benign outlook for inflation, in line with the Bank of England forecast.

It fits in with the picture that the labor market is turned, inflation has turned and in a few more months they'll be tightening.

Inflation is still moderate but this is about the outlook, and an economy that's doing well bears always risks.