Inflation

The Monetary Policy Committee (MPC)  will meet before the Reserve Bank of India (RBI) writes to the Central government regarding its failure to meet the inflation target, according to comments by RBI Governor Shaktikanta Das. “Let me not preempt what we write to the government because… MPC has to have a meeting to discuss the Reserve Bank’s reply to the government,” Das told reporters in Mumbai in a post-policy interaction. ALSO READ: RBI Monetary Policy Highlights: Repo rate hiked by 50 bps to 5.9%, FY23 inflation projection retained at 6.7% The rate-setting MPC typically meets six times in a year to decide on interest rates. The rate-setting panel has met several times outside the cycle over the last two years as it acted swiftly to dampen the impact of the Covid-19 pandemic. The RBI is now on the brink of failing to meet its inflation mandate, as retail inflation has been above the its target of 4 percent for 35 months and outside the tolerance ceiling for eight … [Read more...] about Monetary Policy Committee will meet to discuss RBI letter to govt on inflation aim failure

- A + A WASHINGTON (Sept 30): US consumer spending increased more than expected in August, but aggressive interest rate hikes from the US Federal Reserve (Fed) as it battles stubbornly high inflation are slowing demand, which could limit an anticipated rebound in economic growth in the third quarter. The report from the Commerce Department on Friday also showed underlying inflationary pressures building up last month. The US central bank last week raised its policy interest rate by 75 basis points, its third straight increase of that size, and signaled more large increases to come this year. “The latest data are pointing to a loss of momentum in household spending,” said Rubeela Farooqi, chief US economist at High Frequency Economics in White Plains, New York. “With further rate hikes in the pipeline, risks to both consumption and growth remain to the downside.” Consumer spending, which accounts for more than two-thirds of US economic activity, increased 0.4% last … [Read more...] about US consumer spending rebounds, but high inflation eroding demand

AMSTERDAM – Inflation in the Netherlands jumped in September to its highest in decades, driven by skyrocketing energy prices, the statistics agency (CBS) said on Friday. Consumer prices, harmonized to be comparable with inflation data from other European Union countries (HICP), rose to 17.1 percent this month after August’s jump to 13.7 percent. Energy prices in the euro zone’s fifth largest economy were 114 percent higher than in September 2022, while food prices jumped 10.5 percent. Inflation helped drive retail sales up 2 percent in August, the CBS said, even though sales volumes dropped 6% as consumer confidence has hit an all-time low. This month, the Dutch government said it would spend about 18 billion euros next year to help people pay their bills, and also capped the prices of gas and electricity. … [Read more...] about Dutch inflation leaps to 17%, boosted by high energy prices

TOKYO  – Sterling and the euro rose to fresh one-week highs on Friday, buoyed by the Bank of England’s moves to calm markets and hawkish signals from the European Central Bank. The British currency was headed for its best week against the U.S. dollar in 2 1/2 years as the BoE waded into the debt market to buy gilts for a second day on Thursday, buoying UK yields. Heated German and Dutch consumer inflation data also served as a reminder that the job of the ECB, BoE and other central banks is not done, with the figure for the wider 19-country euro zone due later on Friday. The pound touched $1.1222 early in the Asian session, taking it very close to erasing all of the precipitous losses in the aftermath of the new government’s so-called mini budget last Friday. It gave back some of those gains later in the session but was still up 0.12 percent at $1.11325 at of 0522 GMT, on track for a 2.61 percent advance this week, the most since March 2020. That’s despite plumbing a record low … [Read more...] about Sterling recovers with euro as UK fiscal angst recedes, European inflation accelerates

FRANKFURT – Euro zone inflation zoomed past forecasts to hit a fresh record high this month, reinforcing expectations for another jumbo interest rate hike from the European Central Bank in October. Price growth in the 19 countries sharing the euro accelerated to 10 percent in September from 9.1 percent a month earlier, data from Eurostat showed on Friday, beating expectations for a reading of 9.7 percent. Figures a day earlier had shown inflation in Germany, the bloc’s biggest economy, jumping to its highest rate since the time of the Korean War 70 years ago. Inflation was still driven mainly by volatile energy and food prices but continued to broaden out, with virtually all categories, from services to industrial goods, now showing painfully high readings. That is likely to make uncomfortable reading for the ECB, which targets price growth at 2 percent, as it suggests that inflation is increasingly being fuelled by excess demand and is at risk of getting entrenched. Indeed, … [Read more...] about Euro zone inflation hits record high 10%, raising pressure on ECB

The core index of the Federal Reserve’s preferred measure of inflation went up in August, despite a historically aggressive campaign of interest rate hikes intended to slow it. The Personal Consumption Expenditures Price Index (PCE), which measures the value of goods and services purchased by “persons” residing in the U.S., was down slightly in August from 6.4% to 6.2% annually, but was higher than economists anticipated, according to CNBC. This decline was almost entirely off the back of falling energy prices, with so-called core PCE, which does not consider the more-volatile food and energy indices, increasing in August from 4.7% to 4.9% annually, according to the Bureau of Economic Analysis. This new data closely mirrors the results of the more well-known Consumer Price Index (CPI), released earlier this month, which also saw core prices rise as overall inflation remained near historic highs. As inflation lingers, investors have grown increasingly concerned that the … [Read more...] about The Fed’s Favorite Inflation Indicator Just Spiked Even Higher

Children form financial habits as early as ages 7 to 9, according to the National Financial Educators Council. However, their curiosity about money and how the economy works often starts even before that. Questions about the role of money in our lives can bring a panicked expression to the faces of some parents. They’re concepts that seem too complicated to explain or that you may not be entirely sure of yourself. Here are 10 common questions children are likely to ask you about finances—and some ideas on how to answer them like a pro. Key Takeaways Younger children, still learning the idea of money as a limited resource, are more likely to ask questions about why you can’t always just get more at the bank. As kids get older and ask about the price of various items, parents can introduce the basic concept of supply and demand. Teenagers are typically ready for more advanced financial concepts, such as how stocks work and the ways that people invest. Young Kids … [Read more...] about 10 Questions That Kids Ask About Money

- A + A SINGAPORE (Sept 30): Buyout firms and asset managers are moving in on billions of dollars of infrastructure assets across Southeast Asia, lured by the sector's growth prospects and stable, long-term returns, bankers and analysts say. Merger and acquisition deal volume is up in the sector so far this year, data shows, and a healthy pipeline of deals could make Southeast Asia a rare bright spot for global funds, as they grapple with rising finance costs and slumping markets. The industry is also flush with potentially available assets, after a boom in infrastructure development fed by rapid economic growth. Telecom operators including PLDT in the Philippines and Indonesian carriers, grappling with tight margins and burdensome debt, have done sale and lease back transactions for thousands of cell phone towers. "Southeast Asia is a highly sought-after market, given the compelling growth outlook for infrastructure assets," said Ee-Ching Tay, head of investment … [Read more...] about Global funds find promise in Southeast Asia infrastructure deals

Singapore has unveiled a package of measures for the property market, including tightening lending limits for housing loans in response to a rise in interest rates, as well as new steps to moderate demand. The move would ensure “prudent borrowing” and “avoid future difficulties” in servicing home loans, said Singapore’s central bank, the Ministry of National Development and the Housing & Development Board in a joint statement late on Thursday. The measures – including lowering the amount of government loans available to buy public housing by 5 percentage points – were announced late on Thursday and came into effect from Friday. The interest rate floor used in bank loan calculations has also been raised, reducing the amount of lending a person can obtain in relation to their income level when buying from either the public or private property market. OCBC economist Selena Ling said the steps were prudent and should “dampen any exuberance and slow the pace of price … [Read more...] about Singapore tightens housing loan limits as rates rise

European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, Sept 28, 2022. REUTERS/Yves Herman BRUSSELS – European Union countries meet on Friday to approve emergency levies on energy firms’ windfall profits and launch talks on their next move to tackle Europe’s energy crunch – possibly, a gas price cap. Energy ministers from the 27 EU member countries are negotiating measures proposed by Brussels last week to attempt to contain an energy price surge that is stoking record-high inflation and threatening a recession. They include a levy on fossil fuel companies’ surplus profits made in 2022 or 2023, another levy on excess revenues that low-cost power producers make from soaring electricity costs, and a mandatory 5% cut in electricity use during peak price periods. Diplomats from several countries were confident ministers would approve the package on Friday. Then, the ministers will turn their attention to the EU’s next move to contain the price … [Read more...] about EU countries to back energy windfall levies, lock horns over gas price cap