October 31, 2024
United States:
Key US Inflation Gauge and Spending Pick Up in Solid Economy
The Federal Reserve’s preferred measure of underlying US inflation posted its biggest monthly gain since April, bolstering the case for a slower pace of interest-rate cuts following last month’s outsize reduction.
The so-called core personal consumption expenditures price index, which strips out volatile food and energy items, increased 0.3% in September, and 2.7% from a year earlier, according to Bureau of Economic Analysis data out Thursday. Overall inflation was 2.1%, the lowest since early 2021 and just above the central bank’s 2% goal.
Europe:
Euro-Zone Inflation Picks up, Backing Cautious Approach on Rates
Euro-area inflation accelerated more than expected — matching the European Central Bank’s target and boosting arguments for gradual rate cuts.
Consumer prices rose 2% from a year ago in October, up from 1.7% the previous month and exceeding analysts’ estimates for a 1.9% increase, Eurostat said Thursday.
Asia:
Ueda Indicates BOJ Still on Track for More Rate Hikes After Hold
The Bank of Japan kept its benchmark interest rate unchanged while sticking to its view that it’s on track to achieve its inflation target, an outlook that points to the possibility of another rate hike in the coming months.
That view was reinforced by Governor Kazuo Ueda at a press briefing following the decision, when he said the current political situation in Japan wouldn’t stop him from lifting rates if prices and the economy stay in line with the central bank’s forecasts.
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