August 31, 2023
United States:
Fed’s Preferred Inflation Gauges Rise Modestly, Spending Jumps
The Federal Reserve’s preferred measure of underlying inflation posted the smallest back-to-back increases since late 2020, encouraging a burst of consumer spending and feeding growing expectations that the economy can avert a recession.
The core personal consumption expenditures price index, which strips out the volatile food and energy components, rose 0.2% in July for a second month. The overall PCE price index also increased 0.2%, Bureau of Economic Analysis data showed Thursday.
Europe:
Euro-Zone Inflation Gauges Hold Above 5% Before Key ECB Meeting
Euro-area inflation stopped slowing in August, presenting European Central Bank officials with a quandary as they weigh whether pressures are too persistent to risk a pause in interest-rate hiking.
Consumer prices rose 5.3% from a year earlier, stuck more than 2 1/2 times above the goal sought by policymakers, because of energy. Economists had anticipated weakening. An underlying measure stripping out volatile items slowed as expected to reach exactly the same level as the headline gauge.
Asia:
China Eases Down Payments, Mortgage Rates in Fresh Stimulus Move
China unveiled reductions in down-payment requirements for homebuyers and will allow lenders to lower rates on existing mortgages, taking major new steps to a halt a slump in the country’s residential property market.
The minimum down payment will be 20% for first-time buyers and 30% for second-time buyers, according to a joint statement from People’s Bank of China and National Administration of Financial Regulation on Thursday.
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