United States:
Producer Prices in U.S. Surge in June, Exceeding Forecasts
“Prices paid to U.S. producers rose in June by more than expected, indicating pressure is mounting on companies to pass along higher costs to consumers. The producer price index for final demand increased 1% from the prior month and 7.3% from June of last year, Labor Department data showed Wednesday. Excluding volatile food and energy components, the so-called core PPI also rose 1%, the most on record, and was up 5.6% from a year ago.”
Europe:
U.K.’s Inflation Jump Tests BOE’s Relaxed View on Stimulus
“U.K. inflation unexpectedly accelerated to the highest level in three years in June, driven by widespread price increases that challenge the Bank of England’s argument that the surge will be temporary. Consumer prices climbed 2.5% from a year earlier, exceeding all but two estimates in a Bloomberg survey of 35 economists. Prices rose from May in the vast majority of 12 broad divisions, the Office for National Statistics said Wednesday. The pound advanced.”
Asia:
Bank of Korea Rate-Hike Timing Clouded by Covid: Decision Guide
“Bank of Korea is expected to provide further guidance on its plans to raise interest rates this year when the board meets Thursday, even as a renewed surge in coronavirus cases rules out an imminent tightening. All 20 analysts surveyed by Bloomberg predict South Korea’s central bank will hold its key rate at a record-low 0.5% this week. That announcement would be overshadowed, though, if it transpires that there were dissenting votes calling for a hike at the meeting, an outcome that typically presages a policy move in subsequent months.”
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