This year, UK private-sector employers are planning to give staff a basic annual pay leap of 2…
American consumer prices stand still
In November, American consumer prices didn’t change, although held back by a steep dive in the price of gasoline. However, underlying inflation pressures was still firm in the face of soaring rents as well as healthcare costs.
The strength in underlying inflation disclosed by the Labor Department actually backs points of view that the key US financial institution will have interest rates lifted at its December 18-19 policy gathering. By the way, this year the Fed has increased rates up to three times.
However, with crude prices going down, financial market conditions tightening as well as economic surge decelerating, some financial analysts are assured that the key US bank could settle for fewer rate lifts next year.
November's intact outcome in the Consumer Price Index followed October’s 0.3% rally. It appeared to be the poorest outcome for eight months. The CPI rallied by 2.2% for the 12 months through November, which is the smallest jump since February, having soared by 2.5% in October.
The CPI ascended by 0.2%, excluding the volatile energy and food components, which is in line with October's surge. It raised the year-on-year surge in the so-called core CPI from October’s 2.1% to 2.2%.
By the way, November’s inflation outcome was in line with experts’ hopes.
US Treasury prices pared losses following the report, while the evergreen buck tumbled versus a basket of its rivals.
Notwithstanding the firmness in core consumer prices, the total inflation outlook is soft against the backdrop of diving crude prices as well as signs of decelerating economic surge both in America and overseas.
Tuesday’s report disclosed that in November producer prices tacked on by 0.1% having speeded up by 0.6% in October.
Gasoline prices went down by about 4.2% in November having rebounded by 3% in October.
The UK’s key inflation rate rallied in February, although stayed close to January's two-year minimum, assisting customers to preserve their spending power even as Brexit was still uncertain…
The Monetary policy committee of the Bank of England will vote on the level of interest rate and release its monetary policy summary on March 21, at 14:00 MT time.
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…