February 13, 2024
United States:
US CPI Data to Show Services as Key Driver of Disinflation
Monthly data on US consumer prices due Tuesday is set to show more disinflation in services following recent declines in goods prices, which will bolster the case for Federal Reserve interest-rate cuts, according to Bloomberg Economics.
The Bureau of Labor Statistics report will probably show the consumer price index, and the core index excluding food and energy items, both rose 0.2% in January, Bloomberg economists Anna Wong and Stuart Paul said Monday in a preview of the release.
Europe:
Inflation Has Sent German Pay Back to 2016 Levels, Study Shows
Soaring prices over recent years have pushed inflation-adjusted German wages back to levels last seen in 2016 — boosting arguments for significant pay increases, according to a study whose results could worry the European Central Bank.
“To compensate for the massive real wage losses of the two previous years, strong real wage increases are necessary in the coming wage rounds,” said Thorsten Schulten, a researcher at the Hans Boeckler Foundation, which has ties to the Confederation of German Trade Unions and whose Institute of Economic and Social Sciences, known as WSI, conducted the analysis.
Asia:
Japan GDP Set to Confirm Slip to World’s Fourth-Largest Economy
Japan’s latest growth figures are set to confirm it slipped to fourth-largest economy in the world last year, a development that reflects the impact of its feeble currency and aging demographics.
While the economy is seen returning to annualized growth of 1.2% in the fourth quarter after a bruising contraction in the summer, figures for the calendar year due Thursday are almost certain to show the value of output falling behind Germany’s in dollar terms. India’s economy, meanwhile, is poised to overtake both in the next few years.
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