October 28, 2022
US Core PCE Inflation Picks Up While Consumers Show Resilience
A core gauge of US inflation accelerated in September, while consumer spending stayed resilient, indicating widespread price pressures and solid demand that reinforce the Federal Reserve’s case for another big interest-rate hike next week.
The personal consumption expenditures price index excluding food and energy, a key measure of underlying inflation tracked by the Federal Reserve, rose 0.5% from a month earlier, Commerce Department data showed Friday. From a year ago, the gauge was up 5.1%, a pickup from the prior month, though slightly below economists’ forecasts.
ECB Officials Signal Battle Against Inflation Far From Over
The European Central Bank must take more firm action to combat record inflation, even after delivering back-to-back hikes in interest rates of 75 basis points, according to officials from the Governing Council’s more hawkish flank.
After investors initially interpreted this week’s ECB decisions as a sign that policymakers may be easing off a touch in their efforts, Lithuania’s Gediminas Simkus urged another strong increase in borrowing costs at the final meeting of this year in December.
Global Funds Cut China Bond Holdings for Eighth Straight Month
Global investors sold China’s onshore bonds for the eighth straight month, the longest streak on record, as the notes’ appeal was dampened by a surge in Treasury yields and a weaker yuan.
Foreign investor holdings of Chinese bonds in the interbank market fell by about 70.7 billion yuan ($9.7 billion) in September following net sales of 35.4 billion yuan in the previous month, according to data from China Central & Depository Clearing Co. and Shanghai Clearing House.
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