May 31, 2024
United States:
Fed’s Favored Inflation Gauge Cools, Spending Unexpectedly Drops
The Federal Reserve’s preferred measure of underlying US inflation moderated in April and consumers dialed back their spending, supporting plans for an eventual reduction in interest rates.
The so-called core personal consumption expenditures price index, which strips out the volatile food and energy components, increased 0.2% from the prior month. That marked the smallest advance of the year, according to Bureau of Economic Analysis data out Friday.
Europe:
ECB Seen Making Fewer Rate Cuts in Fight to Curb Inflation Risks
Economists are dialing back their expectations for how far the European Central Bank will lower interest rates after it starts cutting next week, according to a Bloomberg survey.
Respondents anticipate that the first of six quarter-point reductions in the deposit rate — currently at 4% — will be announced next week. That’s one step less than they predicted before the Governing Council last set policy in April.
Asia:
India’s Growth Tops 8%, Giving Boost to Modi as Vote Ends
India’s economic growth topped 8% in the fiscal year that ended in March, faster than expected, giving Prime Minister Narendra Modi’s government a boost days before election results are announced.
Gross domestic product rose 8.2%, the Statistics Ministry said Friday, above the 7.9% forecast by economists in a Bloomberg survey. For the January-March quarter, GDP grew 7.8% from a year ago, higher than expected, but lower than the revised 8.6% expansion in the previous quarter.
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