September 13, 2023
United States:
US Core CPI Picks Up, Keeping Another Fed Hike in Play This Year
Underlying US inflation ran at a faster-than-expected monthly pace in August, leaving the door open for additional interest-rate hikes from the Federal Reserve.
The so-called core consumer price index, which excludes food and energy costs, advanced 0.3% from July, marking the first acceleration since February, Bureau of Labor Statistics data showed Wednesday. From a year ago, it increased 4.3%, in line with estimates and marking the smallest advance in nearly two years.
Europe:
Traders Flip to Bet on ECB Hike as Inflation Upends Rate View
In a span of days, the market has completely changed its view what the European Central Bank is likely to do on Thursday, highlighting just how much uncertainty surrounds the decision.
Money markets are now pricing in a 68% chance the ECB raises interest rates by a quarter of a percentage point. The view has changed rapidly in recent weeks as evidence builds that Europe is facing persistent inflation that’s been made worse by soaring energy prices.
Asia:
Rice Falls Further as Malaysia Seeks to Cut Reliance on Imports
Rice prices extended losses as buyers continued to juggle the fallout from India’s export restrictions, with Malaysia seeking to reduce its reliance on overall imports which make up more than a third of its needs.
Thai white rice 5% broken, an Asian benchmark, dropped $19 on Wednesday to $621 a ton, according to the Thai Rice Exporters Association. Prices rallied to the highest level in almost 15 years early last month.
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