April 12, 2023
United States:
US Core CPI Jumps Again While Showing Some Hints of Moderating
A key measure of US inflation remained brisk but showed hints of moderating in March, likely keeping the Federal Reserve on track to raise interest rates once more next month.
The core consumer price index — which excludes food and energy and is closely watched by the Fed — rose 0.4% from the prior month following a 0.5% gain, in line with economists’ estimates. Yet key measures of housing costs posted the smallest monthly increases in about a year and grocery prices dropped.
Europe:
ECB’s Guindos Says Underlying Inflation Is Sticker Than Expected
Core inflation pressures are more persistent than anticipated, according to European Central Bank Vice President Luis de Guindos.
The measure of consumer-price growth that excludes energy and food — and is currently the key guide for ECB interest-rate setters — will probably remain elevated, Guindos told an event in Madrid.
Asia:
China Bonds Rally on Hopes PBOC Will Ease to Stimulate Growth
Traders are piling into China’s government bonds, driving benchmark yields to the lowest since November on bets that more monetary easing may be on the way.
The nation’s 10-year sovereign bond yield fell as low as 2.81% on Wednesday after China’s subdued inflation data highlighted the scope for more policy support. The move takes the yield’s decline from the year’s high to 12 basis points.
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