January 31, 2025
United States:
Fed’s Favoured Inflation Gauge Posted Muted Advance in December
The Federal Reserve’s preferred measure of underlying inflation remained muted in December, which should support further reductions in interest rates.
The so-called core personal consumption expenditures price index, which excludes food and energy items, rose 0.2% from November and 2.8% from a year earlier, according to Bureau of Economic Analysis data out Friday.
Europe:
German Inflation Stays Unchanged, Backing ECB Rate Caution
German inflation remained elevated, reminding the European Central Bank that caution is still needed as it continues to lower interest rates.
Consumer prices rose 2.8% from a year ago in January, matching December’s pace and the median estimate in a Bloomberg survey of economists.
Asia:
BOJ’s Ueda Voices Confidence on Rate Hike Messaging to Market
The Bank of Japan’s message on gradual interest hikes has been clearly received by financial markets, Governor Kazuo Ueda said, adding that more hikes will take place if its economic outlook is realized.
Ueda said the BOJ’s policy settings are still accommodative after recent rate hikes and that would remain the case as the central bank continues to support the inflation trend.
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