U.S. Core Inflation Holds Steady as Energy Drags Down Main Index
Friday, 11 January 2019 20:48 WIB | ECONOMY |Ekonomi ASCPI

A key measure of U.S. inflation was little changed in December while falling energy prices dragged down the broader gauge, giving the Federal Reserve little urgency to raise interest rates soon as it signals a more cautious approach in 2019. 

Excluding food and energy, the so-called core consumer price index rose 2.2 percent from a year earlier for a second month and increased 0.2 percent from November, matching the median estimates of economists, according to a Labor Department report Friday. The broader CPI cooled to a 1.9 percent annual gain and was down 0.1 percent from the prior month as energy costs fell the most in almost three years.

The data suggest inflation is contained around the Fed™s target, with prices underpinned by steadily rising wages and a tariff war with China. While the central bank last month penciled in two interest-rate hikes in 2019 following four in 2018, officials are now signaling a potential pause through March or longer amid headwinds from trade, the U.S. government's partial shutdown and global growth risks.

Friday's report showed shelter costs, which account for one- third of the CPI, rose 0.3 percent for a second month. That reflected 0.2 percent increases in both owners-equivalent rent - - one of the categories designed to track rental prices -- and rent of primary residence, while hotel and motel rates advanced the most since May. 

Prices for medical care, which make up 8.6 percent of the CPI, rose 0.3 percent from the prior month.

Fed officials have taken a less hawkish tone since the December meeting, when they raised interest rates. In the past week, Chairman Jerome Powell and other officials have stressed that the central bank will be patient and flexible in responding to economic data, including the potential effects of the trade war.

On Thursday, Fed Vice Chairman Richard Clarida said in a speech that œinflation has surprised to the downside recently, and it is not yet clear that inflation has moved back to the central bank's goal on a sustainable basis.

December figures for the Fed™s preferred gauge of inflation -- a separate measure related to consumption -- are scheduled for release on Jan. 31, though the report could be delayed because of the partial government shutdown. The Fed-preferred index and its core gauge tend to run slightly below the Labor Department™s CPI measures.

A separate report on Friday from the Labor Department indicates consumers are gaining more spending power from lower fuel costs. Average hourly earnings, adjusted for inflation, rose 1.1 percent in December from a year earlier, following a 0.8 percent gain in the prior month. 

That could support consumer spending, which accounts for about 70 percent of the U.S. economy, at a time when the outlook is dimming for companies in a variety of industries. On Thursday, news from Macy's and Kohl™s Corp. compounded concerns that rising interest rates and Chinese trade turmoil could dent consumption.

Source : Bloomberg

RELATED NEWS

U.S. retail sales snap 6-month winning streak in September as receipts fall 0.3%
Wednesday, 16 October 2019 19:40 WIB

Sales at U.S. retailers fell in September for the first time in seven months as most stores posted lower receipts, signaling that a widely expected slowdown in consumer spending is underway. Retail sales fell 0.3% last month, the government said Thursday, ending a streak of six straight strong gain...

U.K. Inflation Holds Below BOE Target as Fuel Costs Fall
Wednesday, 16 October 2019 15:58 WIB

Motoring costs fell last month and the price of computer games jumped, leaving U.K. inflation comfortably below the Bank of England™s 2% target. Consumer-price growth held at a near three-year low of 1.7% in September, the Office for National Statistics said Wednesday. Core inflati...

U.S. Consumer Prices Trail Projections as Used-Car Costs Tumble
Thursday, 10 October 2019 20:04 WIB

A key measure of U.S. consumer prices rose by less than expected in September as used-car costs fell by the most in a year, likely bolstering the case for the Federal Reserve to cut interest rates for the third time in three months. The core consumer price index, which excludes food and e...

UK GDP Contracts 0.1% m/m in August, Misses Estimates
Thursday, 10 October 2019 15:59 WIB

The UK GDP monthly release showed 0.1% contraction in August versus 0.0% expected and +0.4% previous. Meanwhile, Index of services (August) arrived at +0.4% 3m/3m vs. +0.1% expected and +0.3% last. The Gross Domestic Product released by the National Statistics is a measure of the total value of al...

U.S. Payrolls Miss Estimates as Wages Cool in Sign of Downshift
Friday, 4 October 2019 19:46 WIB

U.S. private hiring was less than forecast in September as wage gains cooled, offering a warning that the record-long expansion may be starting to falter even as the jobless rate fell to a half-century low. Private payrolls expanded by 114,000 after an upwardly revised 122,000 advance the...

ANOTHER NEWS
Hong Kong stocks closed higher (Review)
Thursday, 17 October 2019 03:54 WIB Hong Kong shares closed higher on Wednesday, in line with a rally across Asia and after shrugging off a mid-morning drop when the city's leader was forced to briefly abandon a policy speech owing to heckling by opposition lawmakers.The Hang Seng...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.