All articles tagged with #inflation rate
The article discusses recent improvements in CPI inflation figures, indicating a slight easing in inflation pressures, with additional details available through a subscription to the Financial Times.
The core PCE inflation rate in July matched expectations at 2.9%, supporting the Fed's potential rate cuts, with markets pricing in an 87% chance of a September rate cut and a continued bullish trend in the stock market despite some volatility.
Eurozone inflation dropped below the ECB's 2% target to 1.9% in May, the first time in seven months, increasing the likelihood of interest rate cuts this year as economists predict further easing due to stronger euro, cheaper commodities, and a softer labor market.
Asia-Pacific markets were mixed as the Bank of Japan's October meeting minutes revealed discussions on how to communicate the shift in their yield control stance. Japan's inflation rate slowed to its lowest level since July 2022, while Hong Kong's Hang Seng index tumbled almost 2% due to heavyweights Tencent and NetEase plunging after China released draft rules on curbing excessive gaming and spending. In Malaysia, the inflation rate fell to its lowest level since February 2021. Oil prices rebounded after Angola's announcement of its withdrawal from OPEC. The Bank of Japan also wrestled with communicating its yield curve control policy shift in October. Meanwhile, Japan's inflation rate slowed to its lowest level since July 2022. The S&P 500 is on track for its longest weekly winning streak since 2017, and the third-quarter real GDP came in lower than expected.
The UK inflation rate dropped more than expected to 3.9% in November, the lowest annual reading since September 2021. The decline was driven by decreases in transport, recreation and culture, and food and non-alcoholic beverages. The Bank of England maintained a hawkish tone, keeping its main interest rate unchanged at 5.25%, and emphasized the need for restrictive policy for an extended period. UK Finance Minister Jeremy Hunt welcomed the figures, stating that the country is starting to remove inflationary pressures and is on the path to healthy, sustainable growth.
Asia-Pacific markets experienced a widespread decline as investors analyzed economic data from the region, including lower-than-expected inflation rates in South Korea and Tokyo. Hong Kong's Hang Seng index dropped to its lowest level since November 2022, while China's CSI 300 index hit a four-year low. The Reserve Bank of Australia maintained its benchmark policy rate, and India's service sector activity expanded at a slower pace than anticipated. Private surveys indicated that Hong Kong's business activity expanded for the first time in four months, and China's services PMI climbed to its highest level since August. Japan's private sector activity contracted for the first time this year, and Tokyo's inflation rate reached its lowest point since July 2022. Additionally, CNBC Pro highlighted stocks to consider before the year-end, and a Wharton professor suggested that the Federal Reserve should acknowledge the possibility of rate cuts in December's meeting. Defensive sectors outperformed in the S&P 500, while mega-cap and AI stocks weighed on the Nasdaq. Oil prices continued to decline despite OPEC+ production cuts.
The new rate for Series I Bonds starting on Nov. 1 will be 5.27%, consisting of a 1.3% fixed rate and a 3.94% inflation rate. This is the highest fixed rate since 2007. Investors who purchased Series I Bonds during high inflation periods received a 0% fixed rate, while those buying now will receive the 1.3% fixed rate for as long as they hold the bond. There are purchase limits and cash-out restrictions, but strategies can be employed to maximize returns.
US inflation has increased for the first time in a year, resulting in families spending an average of $709 more per month compared to two years ago. The rising cost of living and inflation rate have contributed to higher household expenses for American families.
Hong Kong markets, including the Hang Seng index, slid over 2% as investors digested private surveys on economic activity. Mainland Chinese markets also experienced losses, with the Shanghai Composite recording its fifth day of losses in six days. South Korea's Kospi saw gains for the third straight day, while the Kosdaq snapped a nine-day winning streak. Japan's Nikkei 225 and Topix both ended the day in positive territory. Meanwhile, Chinese property stocks, including Country Garden, tumbled on renewed debt concerns. Singapore's inflation rate slowed to its lowest point since February 2022, while Malaysia's inflation rate hit a 16-month low. Japan's business activity expanded for the seventh straight month, while Australia's private sector saw a contraction for the first time since March. New Zealand's trade surplus narrowed in June, and Bank of America believes Europe's oil majors are close to bottoming out. Credit Suisse urges caution beyond three months as recession risks remain, and the early returns for this earnings season are slightly below average.