- Meta AI turns pictures into videos with sound
- US dockworkers return to ports after three-day strike
- DR Congo to begin mpox vaccination campaign Saturday in east
- Meta must limit data use for targeted ads: EU court
- Oil extends gains, jobs report lifts Wall Street
- US hiring soars past expectations in sign of resilient market
- As EU targets Chinese cars, European rivals sputter
- Top EU court finds against FIFA in key transfer market ruling
- Oil extends gains, Hong Kong stocks resume rally
- 'A man provides': Ukrainian miners send families away as Russia advances
- EU states greenlight extra tariffs on EVs from China
- Hong Kong stocks resume rally, oil dips after Middle East-fuelled surge
- Crude stable after Israel-Iran surge, Hong Kong stocks resume gains
- Hera spacecraft to probe asteroid deflected by defence test
- US dockworkers to head back to work after tentative deal
- After Helene's destruction, North Carolina starts to rebuild
- Dockers end three-day strike at Montreal port
- What next for OpenAI after $157 billion bonanza?
- Israel-Hamas war causes 86-percent dive in Gaza GDP: IMF
- Milan's Morata moves house after Inter-fan town mayor 'violates' privacy
- 'Devastating' storm hits Augusta National but Masters will go on
- Relief in Brazil, Asia over delay to EU deforestation rules
- Oil prices jump, stocks fall on Middle East tensions
- Biden says 'discussing' possible Israeli strikes on Iran oil facilities
- Oil prices rise, stocks fall on Middle East tensions
- Oil rallies, stocks mostly retreat on Middle East tensions
- Phasing out teen smoking could save 1.2 mn lives: study
- 'Welcome relief': Asia producers hail EU deforestation law delay
- Japan PM slated to announce plans for 'happiness index'
- Turkish inflation falls less than expected in September at 49.4%
- Easing inflation lifts profit at UK supermarket Tesco
- Skiing calls on UN climate science to combat melting future
- China wine industry looks to breed climate resilience
- Tokyo rallies on weak yen, Hong Kong drops after surge
- Dutch airline KLM unveils 'firm' cost-cutting measures
- Carpe diem: the Costa Rican women turning fish into fashion
- Senegal looks to aquaculture as fish stocks dwindle
- Will AI one day win a Nobel Prize?
- Climate change, economics muddy West's drive to curb Chinese EVs
- Argentina's Milei vetoes university budget after huge protests
- TotalEnergies plans to grow oil and gas production until 2030
- 2024 Nobels offer glimmer of hope as global crises mount
- Tokyo rallies on weak yen, Hong Kong reverses after surge
- Tunisia readies for vote as incumbent Saied eyes victory
- High childcare costs in US weigh on women's employment
- US voters seek help with crushing childcare costs
- Taiwan shuts down for second day as Typhoon Krathon to land
- Supercharged storms: how climate change amplifies cyclones
- Biden official urges talks as US port strike enters second day
- Huge protests in Argentina over public university cuts
RIO | -0.36% | 69.58 | $ | |
CMSC | -0.13% | 24.708 | $ | |
BTI | 0.41% | 35.255 | $ | |
CMSD | -0.24% | 24.83 | $ | |
NGG | -0.89% | 66.38 | $ | |
GSK | 0.34% | 38.501 | $ | |
BP | 1.62% | 32.995 | $ | |
SCS | 1.98% | 12.875 | $ | |
RYCEF | 0% | 6.98 | $ | |
RBGPF | -3.17% | 58.93 | $ | |
BCC | -0.21% | 138 | $ | |
RELX | -1.27% | 46.025 | $ | |
AZN | -0.76% | 77.345 | $ | |
VOD | -0.12% | 9.678 | $ | |
JRI | -0.15% | 13.28 | $ | |
BCE | -0.24% | 33.76 | $ |
US inflation eases slightly to 8.5% in July as fuel prices dip
US inflation eased slightly in July, official data showed Wednesday, taking pressure off the Federal Reserve to hike interest rates sharply while bringing a much-needed boost to President Joe Biden just months before crucial midterm elections.
With energy costs dropping in recent weeks, the CPI dipped to an annual rate of 8.5 percent last month, the Labor Department reported.
Fueled by aggressive consumer spending of pandemic savings, global supply chain snarls, domestic worker shortages and Russia's war on Ukraine, the consumer price index had soared 9.1 percent on-year in June, the highest in 40 years.
But July's consumer price index was unchanged compared to the month before, well below a forecasted increase, while CPI excluding volatile food and energy goods rose just 0.3 percent -- the smallest in four months -- the figures showed.
Consumer prices have continued to climb in the United States, squeezing family budgets and, by extension, Biden's popularity.
His opponents accuse the president of precipitating inflation with his gigantic $1.9 trillion coronavirus relief package, which he enacted in March last year shortly after assuming office.
And Republicans renewed their criticism of Biden's economic policy, warning that Sunday's passage in the Senate of his massive climate and healthcare bill titled the "Inflation Reduction Act," would do the opposite of its stated purpose.
But the devil is in the details.
Experts worry that the inflation slowdown linked to the drop in gasoline prices could be outweighed by rising rent and real estate prices.
"The larger issue is what happens to home ownership costs & rents," Diane Swonk, chief economist for KPMG, wrote on Twitter.
The question now facing Washington is whether it will be possible to bring inflation down sustainably, without plunging the world's largest economy into recession, after two quarters of economic contraction.
In a bid to tamp down inflation, the Fed has already hiked the interest rate four times to a range of 2.25 to 2.5 percent, including 75-basis-point increases at each of the past two meetings.
Fears that Wednesday's reading would come in above forecasts, pushing the central bank to unveil another jumbo hike, weighed on equities in Asia and Europe, with most markets in the regions falling into the red.
On the bright side, the US labor market remains dynamic and in July the unemployment rate fell to the pre-pandemic level of 3.5 percent.
But there are still nearly two jobs open for every available worker, which pushes wages up and contributes to inflation.
Ng.A.Adebayo--CPN