US inflation

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.

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.

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.

It is, of course, premature to declare victory on the basis of a single month's numbers but the underlying influences on the fall in America's headline inflation rate from a 41-year high of 9.1 per cent in June to 8.5 per cent in July were encouraging. The ...

The prospect of some tapering of the likely path of Fed rate rises led to a slight softening of the US dollar against other major currencies. The caveats within any assessment of inflation rates is the geopolitical turbulence. That will come as a relief to other central banks, including the Reserve Bank, worried about capital outflows and imported inflation if the US dollar continued to strengthen. Fed officials, however, have remained quite hawkish, perhaps because they don’t want to risk reversing the recent decline in US consumer and business expectations of future inflation. The markets’ responses were driven by an optimistic assessment of the implications of the data for future US rate rises. Declines in travel-related costs, clothing and education also contributed to the easing of the rate.

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 ...

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Tech shares in America have entered a bull market, with the Nasdaq up more than 20 per cent since mid-May as the United States' annual inflation figure ...

“It’s saying, ‘inflation’s peaked’ and the bond market likes that. “The number was much better than I thought … but if you delve into the number a little, there’s still things you could get worried about.” “And the stock market likes that,” he told Sky News Business Editor Ross Greenwood.

Australian shares traded to a high of 7071 following a rally on Wall Street after inflation surprised on the downside.

The diversified developer reported a final comprehensive income of $924 million as revenue jumped almost 20 per cent to $2.8 billion as it settled 2523 residential lots, in line with its prediction for the year. The company also delivered a surprise increase in its final dividend to 8.5¢ per share. Meanwhile, insurance giant QBE rose 3.3 per cent to $12.54 despite revealing a hefty fall in profits. Among companies delivering earnings updates, shares in AMP fell after the wealth manager reported a 24.5 per cent slump in half-year profit. However, he warned there was more work to be done, noting the comments of US Federal Reserve officials Neel Kashkari and Charles Evans that inflation remains unacceptably high. The S&P All Ordinaries similarly rose 1.2 per cent or 86.7 points to 7325.4 points. Nasdaq gains lifted Australia-listed tech names Novonix, Life360, Brainchip and Block. US equities were the major beneficiaries, the interest-rate sensitive Nasdaq advancing to its highest level in three months. Computershare fell 5.1 per cent to $23, adding to its loss of 4.85 per cent on Wednesday. Telstra shares fell 1.25 per cent to $3.96 after the telco revealed a dip in revenue and profits, largely in line with analyst expectations and the company’s earlier guidance. Financial markets are now pricing in a 50 per cent chance of a 75 basis point interest rate increase at the next US Federal Reserve in September, compared to a 75 per cent chance before the release. Shares have lost 77 per cent of their value over the past five years and closed on Thursday down 0.9 per cent to $1.15.

The US appears to have finally passed peak inflation, raising the prospect that the path of future interest rate rises there and around the world ...

The prospect of some tapering of the likely path of Fed rate rises led to a slight softening of the US dollar against other major currencies. The caveats within any assessment of inflation rates is the geopolitical turbulence. That will come as a relief to other central banks, including the Reserve Bank, worried about capital outflows and imported inflation if the US dollar continued to strengthen. Fed officials, however, have remained quite hawkish, perhaps because they don’t want to risk reversing the recent decline in US consumer and business expectations of future inflation. The markets’ responses were driven by an optimistic assessment of the implications of the data for future US rate rises. Declines in travel-related costs, clothing and education also contributed to the easing of the rate.

US inflation decelerated in July by more than expected, reflecting lower energy prices, which may take some pressure off the Federal Reserve to continue ...

Shelter costs -- which are the biggest services’ component and make up about a third of the overall CPI index -- rose 0.5% from June and 5.7% from last year, the most since 1991. After data last week showed still-robust labor demand and firmer wage growth, a further deceleration in inflation could take some of the urgency off the Fed to extend outsize interest-rate hikes. The impact of inflation on wages has started to dent spending, with the pace of personal consumption growth decelerating between the first and second quarters. But annual inflation remains high at more than 8% and food costs continue to rise, providing little relief for President Joe Biden and the Democrats ahead of midterm elections. The core and overall measures came in below forecast. A decline in gasoline offset increases in food and shelter costs.

The euro and Japanese yen were sitting pretty on Thursday morning after U.S. inflation data overnight came in less hot than feared and sent the dollar ...

The euro and Japanese yen were sitting pretty on Thursday morning after U.S. inflation data overnight came in less hot than feared and sent the dollar tumbling. If price rises have reached their zenith, investors expect the U.S. Federal Reserve will not have to maintain its eye-wateringly steep pace of interest rate hikes, which had been supporting the dollar. - The euro and Japanese yen were sitting pretty on Thursday morning after U.S. inflation data overnight came in less hot than feared and sent the dollar tumbling. - If price rises have reached their zenith, investors expect the U.S. Federal Reserve will not have to maintain its eye-wateringly steep pace of interest rate hikes, which had been supporting the dollar.

The dollar lost further ground versus other major currencies on Thursday, after traders reined in bets on an aggressive interest rate hike by the Federal ...

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Inflation is beginning to wane, offering Americans some relief. However, while things look set to improve, the U.S. economy is still grappling with the ...

In the U.K., inflation soared 9.4% in June from a year earlier, a four-decade high. Last month’s modest slowdown in inflation might enable the Fed to slow the pace of its increases in short-term rates when it meets in late September – a possibility that sent stock prices jumping. Still, Fed Chair Jerome Powell has emphasized that the central bank needs to see a series of lower readings on core inflation before it will pause rate hikes. Last month’s declines in travel-related prices helped lower core inflation, a measure that excludes the volatile food and energy categories and provides a clearer picture of underlying price trends. That’s mostly because of higher gas prices but also because it’s now using more trucks to keep up with the demand for food. There are other signs that inflation may fade in coming months. Bread prices leaped 2.8% last month, the most in more than two years. Average paychecks are rising faster than they have in decades, but not fast enough to keep up with inflation. Republicans, who have made inflation a top campaign issue, stressed that prices are still painfully high. Airfares are still nearly 30% higher than they were a year ago. And even if price increases continue to weaken, they are a long way from the Fed’s 2% annual target. Mr. Biden highlighted the flat monthly inflation figure.

The FT News Briefing is produced by Fiona Symon, Sonja Hutson and Marc Filippino. The show's editor is Jess Smith. Additional help by Peter Barber, Michael ...

The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music. US stocks and bonds rally after lower than forecast inflation data US stocks rallied after the latest US inflation report showed price rises slowed in July, Disney beat analyst expectations and added 15mn subscribers to its Disney+ streaming service, and social media companies want livestreams to be the future of shopping.

Economy is "experiencing a healthy deceleration, not a recession," Goldman Sachs analyst says.

Even if the Fed can manage to slow the economy enough to stamp out inflation without causing a recession, higher interest rates pull downward on prices for all kinds of investments regardless. Traders are now betting on the Fed to raise overnight interest rates by half a percentage point at its meeting next month. But a resilient jobs market has offered a strong counterweight, leading to a muddied outlook for the economy. Energy stocks as a group rose 3.6% for the biggest gain among the 11 sectors that make up the S&P 500. In afternoon trading the S&P 500 was up 13 points, or 0.3%, to 4,223, with roughly four out of five stocks on the index rising. Goldman Sachs analyst Manuel Abacasis said in a research note that current economic data suggests "the economy is experiencing a healthy deceleration, not a recession."

Inflation is beginning to wane, offering Americans some relief. However, while things look set to improve, the U.S. economy is still grappling with the ...

In the U.K., inflation soared 9.4% in June from a year earlier, a four-decade high. Last month’s modest slowdown in inflation might enable the Fed to slow the pace of its increases in short-term rates when it meets in late September – a possibility that sent stock prices jumping. Still, Fed Chair Jerome Powell has emphasized that the central bank needs to see a series of lower readings on core inflation before it will pause rate hikes. Last month’s declines in travel-related prices helped lower core inflation, a measure that excludes the volatile food and energy categories and provides a clearer picture of underlying price trends. That’s mostly because of higher gas prices but also because it’s now using more trucks to keep up with the demand for food. There are other signs that inflation may fade in coming months. Bread prices leaped 2.8% last month, the most in more than two years. Average paychecks are rising faster than they have in decades, but not fast enough to keep up with inflation. Republicans, who have made inflation a top campaign issue, stressed that prices are still painfully high. Airfares are still nearly 30% higher than they were a year ago. And even if price increases continue to weaken, they are a long way from the Fed’s 2% annual target. Mr. Biden highlighted the flat monthly inflation figure.