Core price pressures grow for US February 17, 2011 AMERICA’S recovery was boosted yesterday, with several data releases boding well for the world’s largest economy. However, the Federal Reserve faces more criticism after core inflation rose at its highest rate for over a year. Consumer price inflation for January came in higher than expected, at 0.4 per cent month-on-month. Core prices – excluding food [...]
US inflation in higher-than-expected rise February 17, 2011 US core consumer prices rose at the fastest pace in more than a year in January, indicating a long period of slowing inflation had run its course. The US Labor Department said its core Consumer Price Index, which excludes food and energy costs, increased 0.2 per cent – the largest gain since October 2009. The [...]
US input costs rising but housebuilding up February 16, 2011 US core producer prices rose to their highest rate in more than two years in January, hinting at a potentially troubling build-up in inflationary pressures. A separate dataset from the Commerce Department showed new housing starts jumped 14.6 per cent in January from December to their highest level since September, beating economists’ forecasts but still [...]
King warns over further inflation rises February 16, 2011 The Governor of Bank of England, Mervyn King, warned that inflation will rise sharply in the first half of this year before falling back next year. But he said there were “large risks” that inflation could dip under or go over the Bank’s two per cent target. He said that factors over which the UK [...]
Inflation hits 27-month high February 15, 2011 INFLATION reached its highest rate since November 2008 last month, as escalating price pressures and tax hikes continue to hammer households suffering from sluggish wage growth and rising unemployment. While inflation on the consumer price index (CPI) climbed 0.3 per cent to four per cent, the tax and price index (TPI) – which includes the [...]
Commodities dent FTSE 100 despite strong banking stocks February 15, 2011 BRITAIN’S s top share index closed lower yesterday as strength in banking stocks, inspired by forecast-busting results from Barclays, was outweighed by a broad retreat in the mining sector on commodity price wobbles. The FTSE 100 index closed down 23.01 points, or 0.4 per cent, at 6,037.08. The FTSE 250, FTSE 350 and AIM 100 [...]
Disappointing economic data keeps markets in the red February 15, 2011 The FTSE has spent the day in the red and closed down 0.38 per cent at 6,037.08 after disappointing US economic data and news. Miners were also led down by news from China, where an above-target 4.9 per cent increase in inflation raised the prospect of further interest rate rises. Banks were buoyant, though, [...]
Indian inflation eases February 14, 2011 The Indian government expects headline inflation to ease to seven per cent by the end of March, finance minister Pranab Mukherjee said yesterday, matching other economic forecasts. The wholesale price index, India’s main inflation gauge, marginally eased to 8.23 per cent in January but the central bank will likely keep tightening monetary policy because price [...]
Don’t blame speculators for soaring food prices February 14, 2011 Experts often tell us that retail investors should steer well clear of speculating in the soft commodities market. It’s too risky, they warn, with too many variables for the average private investor to make a fully informed choice. Chuck in a splash of unpredictable weather and a dash of political interference, and it’s all too [...]
ECONOMISTS’ VIEWS: IS INFLATION HERE TO STAY? February 13, 2011 JAMIE DANNHAUSER | LOMBARD STREET RESEARCH “We broadly sympathise with the view of the Bank – that inflation will peak this month or in March, but fall heavily in January next year and be below target through next year.” IAN STEWART | DELOITTE “My assumption is that a good deal of the excess inflation relates [...]