- 'Party atmosphere': Skygazers treated to another aurora show
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Thunberg leads pro-Palestinian, climate protest in Milan
- Stock markets diverge before China weekend briefing
- EU questions shopping app Temu over illegal products risk
- Han Kang's books sell out in South Korea after Nobel win
- Shanghai markets sink ahead of briefing on mixed day for Asia
- Investors, analysts eye bigger China stimulus at Saturday briefing
- Musk unveils robotaxi, pledges it 'before 2027'
- At least 11 dead in Florida but Hurricane Milton not as bad as feared
- Asian markets mixed after Wall St drop, Shanghai dips before briefing
- Automaker Stellantis says CEO will retire in 2026
- Musk's promised robotaxi unveil delayed
- On US coast, wind power foes embrace 'Save the Whales' argument
- At least 10 dead in Florida after Hurricane Milton spawns tornadoes
- Internet Archive reels from 'catastrophic' cyberattack, data breach
- Wall Street stocks retreat from records on US inflation data
- Israel strikes central Beirut, killing 22
- Solar storm could impact US hurricane recovery efforts: agency
- Delta eyes Election Day travel pullback as profits climb
- Florida battered by hurricane, floods but spared 'worst-case scenario'
- UK's William and Kate in first joint public engagement since cancer treatment
- Over 200 women in legal talks with Harrods over Fayed abuse claims
- A very stiff breeze: BBC says sorry for 20,000 kph wind forecast
- Musk finally unveiling his long-promised robotaxi
- London's Frieze art fair goes potty for ceramics
- US, Europe stocks fall on US inflation data
- US consumer inflation eases to 2.4% in September
- Hurricane Milton tornadoes kill four in Florida amid rescue efforts
- South Korea's Han Kang wins literature Nobel
- Ikea posts fall in annual sales after lowering prices
- Stock markets diverge, oil gains after China rebounds
- World can't 'waste time' trading climate change blame: COP29 hosts
- South Korean same-sex couples make push for marriage equality
- Mumbai declares day of mourning for Indian industrialist Ratan Tata
- 7-Eleven owner restructures to fight takeover
- Sri Lanka recovering faster than expected: World Bank
- Hong Kong, Shanghai rally as most markets track Wall St record
- Uniqlo owner reports record annual earnings
- Hong Kong, Shanghai rally as markets track Wall St record
- Indonesia biomass drive threatens key forests: report
- Mumbai mourns Indian industrialist Ratan Tata
- China opens $71 bn 'swap facility' to boost markets
- Asian markets track Wall St record as Hong Kong, Shanghai stabilise
- 'Denying my potential': women at Japan's top university call out gender imbalance
- China's central bank says opens up $70.6 bn in liquidity to boost market
- Youth facing unprecedented wave of violence, UN envoy warns
- 'A casino in every kitchen': Brazil's online gambling craze
- Nobel chemistry winner sees engineered proteins solving tough problems
RBGPF | -1.03% | 59.49 | $ | |
RYCEF | 0.58% | 6.92 | $ | |
CMSC | -0.14% | 24.555 | $ | |
NGG | 0.88% | 66.265 | $ | |
BTI | -0.04% | 35.095 | $ | |
RIO | 0.55% | 67.21 | $ | |
GSK | -1.03% | 38.811 | $ | |
AZN | 0.25% | 77.06 | $ | |
SCS | 2.48% | 12.92 | $ | |
CMSD | -0.28% | 24.7 | $ | |
RELX | 1.51% | 47.07 | $ | |
VOD | -0.78% | 9.665 | $ | |
BCC | 1.95% | 141.71 | $ | |
JRI | 0.08% | 13.23 | $ | |
BCE | 0.27% | 32.95 | $ | |
BP | -0.48% | 32.185 | $ |
US consumer inflation still elevated but Fed under stress
US consumer inflation edged down in February but remains elevated, according to government data released Tuesday, adding pressure to the Federal Reserve as it balances its inflation fight with financial stability concerns.
The central bank has been on an aggressive campaign to tame inflation, raising interest rates eight times since early last year to ease demand.
While Fed Chair Jerome Powell initially said the Fed is prepared to increase the pace of rate hikes if necessary, as economic data runs hot, the collapse of Silicon Valley Bank (SVB) last week and New York-based Signature Bank may complicate its efforts.
The consumer price index (CPI) rose six percent from a year ago, below January's figure and in line with expectations, according to Labor Department data released Tuesday.
While this was the smallest annual rise since September 2021, the level remains well above policymakers' longer-term two percent inflation goal.
Between January and February, the CPI rose 0.4 percent, slowing from the month prior as well.
"The index for shelter was the largest contributor... accounting for over 70 percent of the increase," said the Labor Department in a statement.
It added that the indexes for food, recreation, as well as household furnishings and operations were also contributors.
In particular, the food index in February remains nearly 10 percent above last year's level, with prices of dining out still high.
Meanwhile, costs of shelter and transportation services ticked up, underscoring the challenges of bringing inflation down.
Excluding the volatile food and energy segments, CPI picked up 0.5 percent from January, edging down from the prior month's number.
- Financial stability key -
While many analysts had predicted that the Fed could step up its rate increases as the economy runs hotter than hoped, some are dialing back their expectations now.
The Fed and other central banks worldwide have been hiking interest rates since last year to contain decades-high inflation.
This helped several lenders post healthy profits for 2022, but the higher rates have also lowered the value of bonds bought by banks when they had lower returns.
SVB collapsed after it took a loss of $1.8 billion in the sale of $21 billion in securities.
The implosion marked the biggest banking failures since the 2008 global financial crisis, leaving the Fed in a tough position as it tries to battle inflation without adding to an ongoing rout of some banking stocks.
The data supports a 25 basis points rate hike at the Fed's upcoming policy meeting, said economist Rubeela Farooqi of High Frequency Economics.
"However, the decision ultimately will depend not only on the economic data but also financial stability concerns, which could keep the Fed on the sidelines next week," she said.
O.Hansen--CPN