Inflation

When we dived into mayo inflation last year, we found that Consumer Price Index (CPI) data from the Bureau of Labor Statistics showed prices increasing about ...

Core inflation across Asia likely won't be as long lasting as in other parts of the world, allowing policy makers to focus on slowing growth as headline ...

Prices at the wholesale level fell from June to July, the first month-to-month drop in more than two years and a sign that some of the U.S. economy's ...

Its short-term rate is currently in a range of 2.25% to 2.5%, the highest since 2018. Congressional Republicans have made rising inflation a major line of attack in the upcoming midterm elections. The Fed could announce a third straight three-quarter point rate hike when it next meets in late September or instead carry out a less drastic half-point hike. Inflation at the wholesale level still jumped 9.8% in July compared with a year earlier, suggesting that inflation will remain at painful levels for months to come. The wholesale report follows government data Wednesday that showed that consumer inflation was unchanged from June to July — the first flat figure after 25 straight months of increases. The wholesale costs of eggs, beef and vegetables all jumped.

Argentina's central bank raised its benchmark interest rate by 950 basis points on Thursday as the country struggles to keep a lid on spiraling inflation ...

In Mexico, the central bank on Thursday also raised the country's benchmark interest rate three-quarters of a percentage point to 8.5%, its highest level since the bank's current regime was put in place in 2008. Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com

Wholesale inflation fell in July, adding to investor optimism that pricing pressures may have peaked.

“Remember it took three years and two recessions in the early 1980s before the Fed was successful in their battle against inflation.” On Wednesday, the S&P 500 rose 2.1% to around 4,210 points, its highest level in three months. Tech stocks in particular have bounced back—following a brutal selloff in the first half of the year—thanks to market expectations that inflation has peaked.

Tokyo's Nikkei 225 surged 2.6%, catching up on gains after being closed Thursday for a holiday. Hong Kong and Seoul also advanced, while Shanghai and Sydney ...

On Wall Street, the S&P 500 closed 0.1% lower at 4,207.27 Thursday but was still on pace for a fourth consecutive weekly gain. Traders are now betting on the Fed to raise overnight interest rates by half a percentage point at its meeting next month, down from Fed’s last two increases of 0.75 percentage points. It’s up more than 14% from its bottom in mid-June. Even if the Fed can manage to slow the economy enough to stamp out inflation without causing a recession, higher interest rates pull downward on prices for all kinds of investments regardless. “Stocks were unable to hold onto robust gains following back-to-back reports that suggest inflation has peaked. Markets got a boost Thursday after a report showed inflation at the wholesale level slowed more than economists expected last month. In other trading Friday, U.S. benchmark crude oil shed 31 cents to $94.03 per barrel in electronic trading on the New York Mercantile Exchange. It jumped $2.41 to $94.34 per barrel on Thursday. The euro fell to $1.0319 from $1.0322. Some Fed officials also made comments after Wednesday’s inflation report suggesting their battle against rising prices is far from over. Worries about a possible recession still loom over the market, as the Federal Reserve continues to raise interest rates to fight inflation. The Nasdaq gave up 0.6% to 12,779.91, and the Dow rose 0.1% to 33,336.67. The Russell 2000 index of smaller companies rose 0.3%, to 1,975.26. The three indexes are also on pace for a weekly gain. That came a day after a cooler-than-expected reading on inflation at the consumer level which raised hopes among investors that inflation may be close to a peak and that the Federal Reserve will be less aggressive about raising interest rates than feared.

The producer price index, which gauges the prices received for final demand products, fell 0.5% from June.

The numbers come a day after the consumer price index showed that inflation was flat in July though up 8.5% from a year ago. It could take up to three months for improved supply chains to affect prices for the end consumer." That compares with an 11.3% increase in June and the record 11.7% gain in March. Before July's easing, prices had been running at their highest levels in more than 40 years. Continuing claims rose 8,000 to 1.43 million. The year-over-year gain was 9.8%.

Wall Street's main indexes opened higher on Thursday (Aug 11), extending a rally from the previous session as fresh evidence of cooling inflation further ...

For some time now a shortage of refining capacity has pushed up gasoline and fuel oil prices faster than those on crude oil. The July drop in retail energy ...

Part of July’s break in “core” inflation reflected a 0.5% drop in the prices of transportation services, a direct result of the drop in energy prices that, as already indicated, will not likely persist. The price of a barrel of benchmark West Texas Intermediate grade hit a low of $88.54 at the beginning of August. Since, it has risen to $91.41 a barrel. July showed a monthly gain of 0.3% or a 3.7% annual rate. This measure between April and June rose between 0.6% and 0.7% a month or at a 7.8% average annual rate. The stock market took the news to heart, so much so that the benchmark S&P 500 Index rose 1.7% on the opening bell. July brought a measure of relief on the inflation front.

Markets surged yesterday after we got a 0.0% reading on month-over-month headline CPI. This was below the 0.2% that was expected, and well below the 1.3% ...

And the year-over-year headline number was 8.5%, down from 9.1% in the previous month. Of course, headline inflation was heavily influenced by the recent plunge in gasoline prices. However, core inflation — which excludes food and energy— also came in well below expectations (0.3% sequentially versus the 0.5% median estimate of economists).

Today the Producer Price Index (PPI) saw a welcome decline for July as energy prices fell, but the Fed may have more work to do to fully tame inflation.

The markets still think the Fed has some work to do and will continue to raise rates for the remaining Fed meetings of 2022. The markets think the Fed will start to moderate rate increases slightly at their September meeting, but rates are still certainly expected to move up. Looking forward the Fed will need to estimate where inflation is going in setting interest rates. The Fed doesn’t want to end its inflation battle too soon, but its also worried about pushing the U.S. into recession as many indicators suggest is a strong possibility. Once those are stripped out, underlying inflation may remain at a higher level than the Fed wants to see. July’s price decline is mostly due to falling energy costs which are down 9% for the month.

Calling the top of the current wave of inflation has been a painful exercise for economists and central bankers, who have been proven wrong time and again ...

BANGKOK (AP) — Shares were mixed Friday in Asia after a muddled day on Wall Street, where benchmarks meandered following another encouraging report about ...

Traders are now betting on the Fed to raise overnight interest rates by half a percentage point at its meeting next month, down from Fed’s last two increases of 0.75 percentage points. Such data have raised hopes among investors that decades-high inflation may be close to a peak and that the Federal Reserve will be less aggressive about raising interest rates than feared. It’s up more than 14% from its bottom in mid-June. He noted that household spending would likely weaken further as Britain braces for much higher energy prices as a result of disruptions to supplies due to the war in Ukraine. Some Fed officials also made comments after Wednesday’s inflation report suggesting their battle against rising prices is far from over. Even if the Fed can manage to slow the economy enough to stamp out inflation without causing a recession, higher interest rates pull downward on prices for all kinds of investments regardless. The decline was better than most forecasts. Enough hope for a peak in inflation and Fed aggressiveness has built that the S&P 500 has roughly halved its losses from earlier in the year. Worries about a possible recession still loom over the market, as the Federal Reserve continues to raise interest rates to fight inflation. However, inflation is still painfully high and the economy has given false signals before that relief was on the way only for investors to have the rug pulled out from underneath them. The futures for the S&P 500 and Dow Jones Industrial Average were up 0.5%. On Thursday, the S&P 500 lost 0.1%, the Dow edged 0.1% higher and the Nasdaq gave up 0.6%. The three indexes were on pace for a weekly gain. The report Thursday showing that U.S. inflation at the wholesale level slowed more than economists expected last month came a day after a cooler-than-expected reading on inflation at the consumer level.

The S&P 500 closed 0.1% lower after having been up 1.1% in the early going. The Nasdaq fell 0.6%, while the Dow Jones Industrial Average eked out a 0.1% gain.

The S&P 500 closed 0.1% lower after having been up 1.1% in the early going. The Nasdaq fell 0.6%, while the Dow Jones Industrial Average eked out a 0.1% gain.

An afternoon pullback left stock indexes on Wall Street with a mixed finish Thursday, erasing most of their gains from a morning rally over new signs of ...

Even if the Fed can manage to slow the economy enough to stamp out inflation without causing a recession, higher interest rates pull downward on prices for all kinds of investments. But enough hope for a peak in inflation and Fed aggressiveness has built that the S&P 500 has roughly halved its losses from earlier in the year, and it’s up more than 14% from its bottom in mid-June. Traders are now betting on the Fed to raise overnight interest rates by half a percentage point at its meeting next month. But a resilient job market has offered a strong counterweight, leading to a muddied outlook for the economy. Worries about a possible recession still loom over the market, as the Fed continues to raise interest rates to fight inflation. The Southeast Asian country’s economy has been hard hit by the pandemic, which ravaged its all-important tourism sector. Energy stocks as a group rose 3.2% for the biggest gain among the 11 sectors that make up the S&P 500. The indexes got a big boost early after a report showing inflation at the wholesale level slowed more than economists expected last month. Maybe a little bit too much short-term euphoria kind of got in the market.” Walt Disney Co. shares jumped 4.7% after the entertainment company reported stronger profit for its latest quarter than analysts expected. Inflation is still painfully high, of course, and the economy has given false signals before that relief was on the way only for the rug to get pulled out from underneath investors. The Standard & Poor’s 500 index closed 0.1% lower after having been up 1.1% in the early going.

The headline news in yesterday's release of the Consumer Price Index (CPI) data for July was the 7.7 percent (44 percent at an annual rate) decline in ...

And it will concern those who, correctly, fear that the economy is facing a rising chance of entering a recession. That constitutes an acceleration from 11.1 percent in June and reflects the fact that shelter inflation (one-third of the CPI) continued its unabated rise. The core (non-food, non-energy) CPI rose year-over-year at a 5.9 percent rate – unchanged from June. The bundle of food, energy, and shelter (FES) that constitutes over one-half of the typical monthly spending rose at a painful 11.3 percent rate.

US inflation cooled unexpectedly in July, boosting markets around the world. The worst may be over, but the RBI and Fed remain cautious.

All these may lead to higher growth in the medium term, and investors could enter with a medium- to long-term view,” the CIO of an asset management firm said. The decline in US inflation numbers in July is reassuring for the markets. In his monetary policy statement recently, RBI Governor Shaktikanta Das said that domestic edible oil prices were expected to soften further on the back of improving supplies from key producing countries, and supply-side interventions from the government. Global commodity prices and food prices that shot up after the war in Ukraine began, have also softened. “DIIs holding up goes beyond the conventional dimension of Indian markets which used to fall significantly when FPIs pulled out, and rose when they came back. Indian markets were already drawing comfort from softening crude oil prices and overall inflation, and were on the rise.

Economists surveyed by Dow Jones were expecting headline CPI to increase 8.7% on an annual basis and 0.2% monthly. Year-over-year change in the consumer price ...

The energy index rose 32.9% from a year ago. Recent commentary from policymakers has pointed toward a third consecutive 0.75 percentage point interest rate hike at the September meeting. But gasoline was still up 44% from a year ago and fuel oil increased 75.6% on an annual basis, despite an 11% decline in July. While inflation has been accelerating, gross domestic product declined for the first two quarters of 2022. The central bank has hiked benchmark borrowing rates by 2.25 percentage points so far in 2022, and officials have provided strong indications that more increases are coming. "They've been saying they're ready to deliver a 75 basis point hike if they have to. I don't think they have to anymore." Butter is up 26.4% over the past year, eggs have surged 38% and coffee is up more than 20%. The report was good news for workers, who saw a 0.5% monthly increase in real wages. Despite the monthly drop in the energy index, electricity prices rose 1.6% and were up 15.2% from a year ago. - The report was good news for workers, who saw a 0.5% monthly increase in real wages. Prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, a slowing pace from the previous month due largely to a drop in gasoline prices.

New US data suggests that the worst of inflation may be over after a tough year of price increases.

That means that central banks will continue to increase borrowing costs. About 39 percent of economists asked said that they expect inflation to stay high past 2023. Nevertheless, core inflation remains higher than most central banks’ comfort zone both in developed and developing economies. There has been much uncertainty surrounding gas flow via the Nord Stream pipeline. Core inflation, the number that measures inflation while excluding the price of volatile components like food and fuel, has started to cool in the US and UK. Some economists predict Japan and the eurozone will follow suit. US central bank officials see inflation decelerating through the second half of the year, the European Central Bank puts the peak in the third quarter and the Bank of England sees it in October.