The core Personal Consumption Expenditures (PCE) price index witnessed a modest increase of 0.1% (seasonally adjusted) for the month and has risen 2.6% from the previous year – broadly as expected by analysts. May 2024 experienced the lowest annual rate since March 2021, the Federal Reserve’s inflation target is 2%.Read More →
The headline inflation rate registered at 3.5% year-on-year, surpassing the 3.4% economists had anticipated in a Dow Jones survey and marking a 0.3% increase from February 2024. The core CPI experienced a 0.4% rise on a monthly basis and a 3.8% increase from the previous year, both exceeding expectations. U.S.Read More →
U.S. inflation climbed in line with expectations in January 2024, according to the preferred measure the Federal Reserve uses to make decisions on cutting interest rates. The personal consumption expenditures (PCE) price index, excluding food and energy costs, increased 0.4% for the month and 2.8% from a year ago, asRead More →
Stocks dropped on Tuesday 13th February 2024 after hotter-than-expected inflation data for January caused Treasury yields to spike The new inflation figure raised doubts that the Federal Reserve would be able to cut rates several times this year, a key part of the equity market bull run case. The consumerRead More →
Progress on U.S. inflation Core prices for personal consumption expenditures (PCE), a preferred measure by the Federal Reserve as a longer-term inflation calculation, rose 2% for the period, while the rate was 1.7%. On an annual basis, the PCE price index rose 2.7%, down from 5.9% a year ago, whileRead More →
Stocks moved lower Thursday 11th January 2024, reflecting the higher-than-expected December 2023 inflation data. The S&P 500 in early trade edged lower by around 0.7%, while the Nasdaq Composite dropped nearly 0.8%. The Dow Jones Industrial Average dropped by 0.6%. The S&P 500 briefly touched 4800 after climbing above its record high of 4,796. Higher thanRead More →
Prices across a wide spectrum of goods and services moved slightly higher in November 2023 but were mostly in line with expectations, thus further easing pressure on the Federal Reserve. The consumer price index, a closely watched inflation gauge, increased 0.1% in November, and was up 3.1% from a yearRead More →
U.S. Inflation was flat in October from the previous month, providing a positive sign that high prices are finally easing their tight grip on the U.S. economy. Is this also a green light for the Federal Reserve to stop raising interest rates. The consumer price index (CPI) was flat inRead More →
Latest U.S. inflation figures The latest inflation figures for the U.S. show that the annual inflation rate rose to 3.7% in August 2021, up from 3.2% in July 2021. This was mainly driven by a sharp increase in energy prices, which jumped up 10.5% over the last month. Gas (petrol) prices accounted for more than half ofRead More →
Up slightly for the first time in a year U.S. consumer prices rose a mild 0.2% in July, but the rate of inflation rose for the first time in more than in a year in a sign it’s going to take a while to get the cost of living fullyRead More →
The Fed have deliberated over ‘transitory’ inflation – (they got that wrong). They have teased us about when rates will be cut (still waiting). And now we are told no rate cut but: ‘the next rate move is unlikely to be up!’ Probably better to say and do nothing atRead More →
Inflation has become a persistent challenge for the Fed The battle against inflation persists, gradually impacting the U.S. economy and presenting substantial challenges for the Federal Reserve. Despite concerted efforts to control it, inflation remains stubbornly remains, leaving policymakers in a dilemma – to stimulate economic growth or to curbRead More →
Markets have fretted about core inflation recently, now analysts are concerned about a highly specific price gauge within the data – ‘supercore’ inflation. This measure tracks services inflation, excluding food, energy, and housing, which has recently surged, rising 4.8% year-over-year in March 2024 and over 8% on a three-month annualisedRead More →
Wholesale U.S. prices rose more than expected in September 2023, according to latest data released indicating that inflation remains a problem for the U.S. economy. The producer price index (PPI), which measures costs for finished goods that producers pay, increased 0.5% for the month, higher than estimated for a 0.3%Read More →
Wholesale prices surged unexpectedly in April, presenting another potential obstacle to any imminent cuts in interest rates. The Producer Price Index (PPI), which tracks the average trajectory of selling prices received by domestic producers for their output, increased by 0.5% in April. It also showed a 2.2% rise on aRead More →
The gross domestic product (GDP) from January to March 2024, grew at an annualised rate of 1.6%, significantly underperforming the projected 2.4%. The personal consumption expenditures (PCE) price index, crucial for the Federal Reserve’s inflation assessments, climbed at an annualised rate of 3.4% for the quarter, marking the largest increaseRead More →
Despite the recent surge in the Consumer Price Index (CPI), and better than expected PPI data, markets have shrugged off any concern… for now Fickle On Wednesday 10th April 2024 the CPI data announcement pushed the markets down and on Thursday 11th the markets recovered after the PPI data wasRead More →
The U.S. economy is on a rip, with employers adding around 303,000 jobs in March 2024 – the largest increase in almost a year. As the world’s largest economy continues to surge, questions arise about the Federal Reserve’s next move regarding interest rates. Stronger-than-expected Job Growth The unemployment rate fellRead More →
Federal Reserve Chairman Jerome Powell stated on Wednesday 3rd April 2024 that policymakers will need time to assess the current inflation situation, leaving the schedule for potential interest rate reductions unclear. Referring to the stronger-than-anticipated price pressures at the year’s onset, Powell reportedly stated that he and his colleagues areRead More →
The U.S. Consumer Price Index, a comprehensive gauge of the cost of goods and services, rose by 0.4% for the month and increased by 3.2% compared to the previous year. The annual rate was marginally higher than expected. The monthly rate was slightly above the forecast of 0.3%. This mayRead More →
Is progress on U.S. inflation stalling? That’s the fear spreading through Wall Street as another inflation reading on Friday 16th February 2024 came in hotter-than-expected. The producer price index rose 0.3% in January 2024. The largest increase since August 2024 and higher than the 0.1% forecast. Excluding food andRead More →
The Federal Open Market Committee (FOMC) held interest rates steady and indicated a willingness stop raising interest rates. But a cut anytime soon is unlikely until inflation is brought fully under control and nearer to the Fed’s 2% inflation target. The Federal Reserve sent a signal that it is finishedRead More →
Turkey’s central bank on Thursday 25th January 2024 hiked its key interest rate to 45%. It comes amid an ongoing struggle against double-digit inflation for Turkey’s policymakers, with the rate hike the latest step in that ongoing fight. 30 Turkish Lira to 1 U.S. dollar Inflation in Turkey increased nearly 65%Read More →
Inflation, rose marginally to 4% in December, up from 3.9% in November 2023. Economists had forecast a slight fall but unexpected rises in alcohol and tobacco prices were behind the surprise rise. However, with energy bills predicted to come down in 2024, there are still expectations of interest rate cutsRead More →
U.S. GDP figure better that forecast The U.S. economy grew even stronger than previously calculated in the third quarter, the result of better than expected business investment and stronger government spending, the Bureau of Economic Analysis reported Wednesday 29th November 2023. Gross domestic product (GDP), a measure of all goodsRead More →
Federal Reserve members, in their most recent meeting, gave little indication of cutting interest rates anytime soon, particularly as inflation remains well above their goal of 2%, according to minutes released Tuesday 21st November 2023. The detail of the meeting held 31st October – 1st November 2023, showed that FederalRead More →