December 13, 2022
US Core Inflation Slows, Giving Fed Some Breathing Room on Rates
A key gauge of US consumer prices posted the smallest monthly advance in more than a year, indicating the worst of inflation has likely passed and validating an anticipated slowing in the pace of Federal Reserve interest-rate hikes.
Excluding food and energy, the consumer price index rose 0.2% in November and was up 6% from a year earlier, according to a Labor Department report Tuesday. Economists see the gauge — known as the core CPI — as a better indicator of underlying inflation than the headline measure.
European Stocks Rally After Cooler-Than-Expected US Inflation
European stocks jumped after US inflation climbed less than expected, with investors weighing the data’s potential impact on slowing the Federal Reserve’s rate increases.
The Stoxx Europe 600 gained 1.8% by 1:51 p.m. in London after a key gauge of US consumer prices in November posted the smallest monthly advance in more than a year, indicating the worst of inflation has likely passed and validating an anticipated slowing in the pace of Fed rate hikes. Traders pared bets on future interest rate hikes by the Fed and the European Central Bank.
China Postpones Key Economic Policy Meeting Due to Covid Spike
China is delaying a closely watched economic policy meeting due to start this week after Covid infections surged in Beijing, according to people familiar with the matter.
There’s no set timetable for when the Central Economic Work Conference, usually attended by President Xi Jinping, will be rescheduled, the people said, asking not to be named discussing confidential information.
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