Latest news with #Owner'sEquivalentRent
Malaysian Reserve
4 days ago
- Business
- Malaysian Reserve
Ringgit rises as softer US inflation boosts rate cut expectations
THE ringgit extended its uptrend against the US dollar on Wednesday, supported by a 0.43 per cent drop in the US Dollar Index (DXY) to 98.097 after the headline US inflation rate came in lower than expected. At 8 am, the local note rose to 4.2115/2285 against the greenback from Tuesday's close of 4.2290/2320. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is likely to be well supported today, with the US dollar-ringgit (USD/MYR) expected to trade between RM4.20 and RM4.23 amid a high probability of a US interest rate cut. He noted that the softer US inflation rate of 2.7 per cent in July was largely driven by a moderation in the Owner's Equivalent Rent (OER) to 4.1 per cent, after holding at 4.2 per cent for two straight months. OER accounts for about 25 per cent of the Consumer Price Index (CPI) weightage, he said. 'The US benchmark equity indices rose more than one per cent, while the yield on the two-year US Treasury note fell by four basis points to 3.73 per cent. 'This suggests that the lower-than-expected headline inflation has strengthened expectations for a US rate cut, fuelling the rally in the equities market,' he told Bernama. At the opening, the ringgit, however, traded mostly lower against major currencies. It fell versus the Japanese yen to 2.8502/8619 from Tuesday's close of 2.8490/8512 and declined against the euro to 4.9182/9380 from 4.9090/9125 yesterday. But against the British pound, the local note appreciated to 5.6876/7106 from 5.6905/6946. The ringgit trended higher against regional peers. It advanced against the Singapore dollar to 3.2825/2960 from 3.2867/2893 at yesterday's close and strengthened versus the Thai baht to 12.9965/13.0570 from 13.0135/0300. The local note also appreciated versus the Indonesian rupiah to 258.5/259.6 from 259.6/259.9 previously and rose vis-a-vis the Philippine peso to 7.38/7.41 from 7.41/7.42 — BERNAMA
Yahoo
13-02-2025
- Business
- Yahoo
The Biggest Driver Of Inflation Is Getting Less Severe
Housing costs aren't rising as fast as in recent years, providing some optimism about the direction of inflation despite prices for some other things surging faster than expected. Rent and mortgage payments are the biggest items in most household budgets, so slower increases in those categories could ease inflation's sting. Two housing cost indicators in the Consumer Price Index rose 0.3% in January, on the high end of a typical pre-pandemic cost increases have settled back down to pre-pandemic levels, providing some hope that inflation could slow this year despite surging costs for food, energy, and other report on the Consumer Price Index in January showed overall prices increasing faster than expected, but there was one silver lining. Rents only rose 0.3%, down from 0.4% the month before, and Owner's Equivalent Rent, a measure that tracks housing costs for homeowners, rose 0.3%, the same as in December. Both of those measures were hovering on the high range of pre-pandemic levels, after having surged in late 2021 through 2023. Housing costs are the biggest line item in most household budgets, and are also the biggest part of inflation measures such as the CPI. So, rent increases simmering down is good news for household budgets as well as the broader economy. The overall surge of the CPI in January partly reflected rising prices for used cars as well as an increase in the "shelter" category, which includes prices for homeowner's insurance and is still plenty of reason to be pessimistic about the inflation outlook, including the fact that President Donald Trump's wide-ranging tariffs on foreign trade could push up prices when they are implemented. However, lower rent inflation could ease some of the financial pain."It looks a potentially encouraging story for housing CPI to come in lower from late summer, which can act as an important counterweight to concerns over tariffs," James Knightley, chief international economist at ING, wrote in a commentary. Read the original article on Investopedia Sign in to access your portfolio
