September 30, 2022
US PCE Price Index Jumps More Than Forecast While Spending Rises
A key gauge of US inflation picked up steam in August, while consumer spending ticked up, suggesting resilience among American households in the face of rising prices across the economy.
The personal consumption expenditures price index, which the Federal Reserve uses for its inflation target, rose 0.3% from a month earlier, topping estimates. From a year ago, the gauge was up 6.2%, also higher than forecast and well above the central bank’s 2% goal.
French Inflation Unexpectedly Eases as ECB Weighs Next Move
French inflation unexpectedly slowed, part of a diverging price picture among the continent’s top economies as the European Central Bank decides whether to deliver another steep hike in interest rates.
Consumer prices in the euro area’s second-largest economy advanced 6.2% from a year ago in September — down from 6.6% in August. Economists had estimated inflation held steady.
China Escalates Cash Injection Ahead of Golden Week Holiday
China bumped up its injection of short-term liquidity by more than nine times this week, signaling its resolve to avoid a cash squeeze during the Golden Week and in the run-up to the Communist Party’s twice-a-decade leadership summit.
The People’s Bank of China net injected 868 billion yuan ($122 billion) into banking system via reverse repos this week, the most since January 2019. That’s after a net injection of 92 billion yuan in the previous week. Quarter-end and Golden Week holidays next week may have played a part in the PBOC’s decision to boost liquidity, according to Maybank Securities Pte Ltd.
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