Overseas Headlines – July 14, 2020

United States:

U.S. Consumer Prices Climb by Most Since 2012 on Higher Gasoline

“U.S. consumer prices posted the biggest monthly gain since 2012 on a rebound in gasoline costs, though inflation remained subdued more broadly amid the pandemic. The consumer price index jumped 0.6% from the prior month, the first increase since February, after a 0.1% drop in May, Labor Department figures showed Tuesday. The median forecast in a Bloomberg survey of economists called for a 0.5% increase. Compared with a year earlier, the gauge increased 0.6%.”



U.K. Faces Biggest Budget Deficit in Peacetime History

“Britain could see its budget deficit soar to a peacetime record this year as the coronavirus lockdown hammers the economy, according to the country’s fiscal watchdog. Borrowing, which was forecast to be 55 billion pounds ($69 billion), could now hit 322 billion pounds, the Office for Budget Responsibility said Tuesday. That’s the equivalent of over 16% of GDP, the highest for any year since World War II. Debt remains above 100% of GDP for the next five years.”



China Posts Surprise Trade Gains as Economies Try to Reopen

“China’s exports and imports both rose in June, signaling that demand at home and abroad may have started to recover even as the pandemic continues to ravage the global economy. Exports rose 0.5% from a year ago, while imports expanded 2.7%. Both had been forecast by economists to fall. The trade surplus shrank from a record-high in May to $46.4 billion last month.”



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