September 13, 2022
United States:
US Inflation Tops Forecasts, Cementing Odds of Big Fed Hike
US consumer prices were resurgent last month, dashing hopes of a nascent slowdown and likely assuring another historically large interest-rate hike from the Federal Reserve.
The consumer price index increased 0.1% from July, after no change in the prior month, Labor Department data showed Tuesday. From a year earlier, prices climbed 8.3%, a slight deceleration, largely due to recent declines in gasoline prices.
Europe:
ECB’s Simkus Sees Hike of ‘at Least’ a Half-Point in October
The European Central Bank should raise interest rates by at least a half-point at its October meeting, according to Governing Council member Gediminas Simkus.
Despite the ECB describing last week’s historic 75 basis-point rise as “front-loading,” the Lithuanian central bank chief said Tuesday that the end-point of the cycle of hikes isn’t important right now.
Asia:
India Inflation Basket Needs Urgent Revision, Economists Say
India’s retail inflation basket needs to be revised to improve the efficacy of monetary policy, according to a paper by a New Delhi-based economic policy think-tank.
“Higher the weightage of food in overall CPI, the more cumbersome it is for monetary policy to contain inflation,” economists including Deepak Mishra and Ashok Gulati wrote. “The structure of headline inflation in India is quite different from the advanced economies which limits the efficacy of monetary policy in India,” they wrote.
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