All articles tagged with #price pressures
U.S. inflation remains subdued with a 2.4% rise in CPI in May, showing limited impact from tariffs so far, but concerns persist about future price increases and their effects on monetary policy.
US Treasury Secretary Janet Yellen warned that the decline in inflation may not be smooth, despite recent reports showing a rebound in price pressures. She emphasized that while progress on inflation is favorable, it may not be a smooth path month to month. Yellen attributed the previous surge in inflation to pandemic-induced disruptions in the global supply chain, a tight labor market, and increased consumer demand. She stated that President Biden's top priority is addressing the high costs that concern many Americans and expressed confidence that inflation will come down over time, dismissing concerns of stagflation.
French farmers blocked roads across the country to protest against price pressures, taxes, and green regulations, which they say threaten their livelihoods. They are urging the government to ease its drive for lower consumer prices and loosen environmental regulations. The unrest reflects similar grievances shared by farmers across Europe, and comes amid concerns over the impact of the EU's Green Deal on farming. Fearing spillover from farmer unrest in other European countries, President Emmanuel Macron's government has already withdrawn a contested draft farming law.
French farmers are increasing pressure on the government with protests over price pressures, taxes, and green regulations, threatening to expand their demonstrations unless their grievances are addressed. The farmers are frustrated with issues such as a tax on tractor fuel, cheap imports, water storage problems, and pressure from retailers, and are seeking assurances from the government to stabilize farming revenues and reduce bureaucratic regulations. The government has withdrawn a draft farming law and invited farming representatives for talks in response to the escalating protests.
The rise in US core inflation indicates persistent price pressures, highlighting concerns for the Federal Reserve as it monitors economic indicators.
The November inflation report is expected to show a slight cooling of price pressures in the US economy, with economists predicting a 3% increase in the consumer price index (CPI), just below the previous month's 3.2% rise. Gasoline prices are expected to drop significantly, resulting in flat monthly inflation. However, core prices, excluding food and energy, are anticipated to climb 0.3% monthly and 4.1% annually, indicating persistent underlying price pressures. The Federal Reserve, which has raised interest rates 11 times since March 2022, will closely monitor the report as it assesses the need for further rate hikes. Inflation continues to burden US households, particularly low-income individuals, who face higher costs for essential goods and services.
Core consumer inflation in Tokyo unexpectedly accelerated in October, indicating broadening price pressures and raising expectations of a near-term end to ultra-low interest rates. The data suggests that the Bank of Japan (BOJ) may revise up its inflation forecasts at the upcoming policy meeting. The Tokyo core CPI rose 2.7% year-on-year, exceeding market forecasts, while the "core core" index, which excludes fresh food and fuel prices, increased by 3.8%. Services prices also rose, indicating potential inflationary pressure beyond goods. The BOJ, which has maintained ultra-loose policy, is facing pressure to adjust its bond yield control due to rising global interest rates.