U.S inflation

2022 - 8 - 11

Dow futures rip higher by 400 points after lighter-than-expected ... (CNBC)

Investors are awaiting the July consumer price index report due Wednesday, which will give the Federal Reserve further data on inflation.

The billionaire investor is currently embroiled in a legal battle with Twitter, which he had agreed to buy for about $44 billion. "I still think the Federal Reserve is on for 75 basis points….They need to see much more improvement than this sustained, especially in the core. "The curve has flattened to negative-50 basis points between 2s and 10s. When the 2-year Treasury yield trades above the 10-year yield, many on Wall Street see that as strong recession indicator. The yield on the 30-year Treasury bond fell 6 basis points to 2.96%. It is sometimes called Wall Street's "fear gauge," and tends to spike when investors are more uncertain about the future. The Dow Jones Industrial Average surged more than 500 points following a better-than-expected inflation report which lifted stocks, especially in technology and banks. With about an hour left in Wednesday's trading session, the Dow is holding onto a rally of more than 400 points. "It looks like the odds of another 75 basis point hike by the Fed have dipped significantly in the wake of this report and we could only see a 50 basis point hike at the next meeting. Shares of Disney surged more than 5% after hours when the company reported earnings that beat Wall Street estimates on both the top and bottom lines, with strong spending at theme parks. ... If we continue to see declining inflation prints, the Federal Reserve may start to slow the pace of monetary tightening," said Nancy Davis, founder of Quadratic Capital Management. Since 1990, that would be the 10th longest such streak, according to Bespoke Investment Group.

US inflation eased slightly in July on lower petrol prices (Financial Times)

The US consumer price index rose by 8.5 per cent year-on-year in July, a slower annual increase compared to June, as inflationary pressures eased on the ...

U.S. Inflation Eased Slightly to 8.5% in July (The Wall Street Journal)

The Labor Department on Wednesday said the consumer-price index, a measure of what consumers pay for goods and services, rose 8.5% in July from the same month a ...

- Opinion: At Mar-a-Lago, the FBI Tries Presidential Meddling Again - Opinion: Whistles Start to Blow at the FBI You may cancel your subscription at anytime by calling Customer Service.

US inflation falls to 8.5% in July but still close to multi-decade high (The Guardian)

Gas prices drop sharply after a hitting a national average of $5 a gallon in mid-June.

Energy and food prices are notoriously volatile and could still rise again. After stripping out food and energy costs – which are highly volatile – prices climbed by 5.9% in the year to the end of July, matching last month’s reading. The labor department reported that the gasoline index fell 7.7% in July, offsetting increases in the food and shelter indexes.

US inflation slips from 40-year peak but remains high (The Australian Financial Review)

Washington | Overall consumer prices in the US were unchanged during July, leaving the annual rate lower and providing some relief to both the Federal ...

The price of bread rose 3.7 per cent in July and pork chops were up 5.1 per cent. The Fed’s forecast of a soft landing would be greatly improved if we see continued declines in core goods.” On Friday, Congress is poised to give final congressional approval to a revived tax-and-climate package pushed by President Biden and Democratic lawmakers. Falling gas prices were the main driver of the reduction in the latest numbers. Connect with Matthew on Americans have become more optimistic about future prices. “We’re seeing some signs that inflation may be getting to moderate. Bank of America’s US and global economist Aditya Bhave said the July inflation report was a welcome relief for the economy and expects the Fed to increase rates by 50 basis points in September. That index fell 7.7 per cent in July. The energy index fell 4.6 per cent over the month due to the lower petrol and natural gas prices but the index for electricity increased. Residential rental prices continued their rise, with rent of primary residences up 0.7 per cent in July. Rent of primary residence is now up 6.3 per cent on an annual basis, up from 5.8 per cent in the year to June. One-third of Americans rent their homes, and higher rental costs are leaving many of them with less money to spend on other items. The core inflation reading – an index which measures all items less food and energy – rose 0.3 per cent in July, a smaller increase than in April, May, or June. The annual core rate stayed flat at 5.9 per cent, but that is still too high for the Fed. As earlier months of high inflation dropped out of the numbers, the official annual inflation rate declined to 8.5 per cent from the 41-year high of 9.1 per cent – a bigger reduction than most economists expected.

US inflation was 0% in July (Quartz)

After months of touching historic highs, it looks like US inflation has finally peaked—barring any unforeseen shocks. US consumer prices didn't increase at ...

That’s still a far cry from the record-high lumber prices in May 2021, and should contribute to lower prices for another key item: new homes. Lower prices for other commodities point to further relief farther down the line. In July, prices for a slew of commodities and raw materials dropped, including various types of food. On the year, prices rose by 8.5% on the year, down from 9.1% in June. While monthly prices didn’t budge, inflation for food and housing accelerated in June, a concerning sign for Fed officials. That’s a marked slowdown from June, when prices rose 1.3%, and the lowest monthly inflation rate in more than two years.

U.S. inflation at 8.5 percent, slips from from 40-year high (PBS NewsHour)

Falling gas prices gave Americans a slight break from the pain of high inflation last month, though the surge in overall prices slowed only modestly from ...

In the U.K., inflation soared 9.4% in June from a year earlier, a four-decade high. The Fed has raised its benchmark short-term rate at its past four rate-setting meetings, including a three-quarter point hike in both June and July — the first increases that large since 1994. One-third of Americans rent their homes, and higher rental costs are leaving many of them with less money to spend on other items. But the New York Fed survey found that Americans’ foresee lower inflation one, three and five years from now than they did a month ago. Chair Jerome Powell has said the Fed needs to see a series of declining monthly core inflation readings before it would consider pausing its rate hikes. On Friday, the House is poised to give final congressional approval to a revived tax-and-climate package pushed by Biden and Democratic lawmakers.