Latest news with #coreinflation
Bloomberg
3 days ago
- Business
- Bloomberg
Bank of Canada Weighed Cut In July, Opted to Wait for More Data
The Bank of Canada considered cutting interest rates at its last meeting, but trade uncertainty and sticky core inflation compelled officials to hold borrowing costs steady. Policymakers discussed a quarter percentage point cut at their July meeting, but the ongoing trade dispute with the US, the resilience of the Canadian economy and mounting risks to inflation ultimately led the bank's governing council to keep the policy rate at 2.75% for a third consecutive meeting.
Reuters
4 days ago
- Business
- Reuters
Spain's final 12-month EU-harmonised inflation at 2.7% in July
Aug 13 (Reuters) - Spain's European Union-harmonised 12-month inflation rate rose to 2.7% in July, up from 2.3% in the period through June, final data released by the National Statistics Institute (INE) showed on Wednesday. The INE's final data was in line with the 2.7% forecast in both the flash reading released two weeks ago and the average estimate from analysts polled by Reuters. Core inflation, which strips out volatile fresh food and energy prices, rose to 2.3% in the 12-months through July, up from 2.2% in the period through June, the INE said. Spanish national consumer prices also rose 2.7% in the 12 months through July, up from a 2.3% increase in the period through June, and in line with the 2.7% rate initially measured by the INE two weeks ago.
Yahoo
4 days ago
- Business
- Yahoo
German statistics office to release detailed July inflation info
The German Statistical Office plans to release detailed inflation data on Wednesday for the month of July. German consumer prices rose 2% year-on-year in June. Late last month the statisticians released preliminary figures indicating that consumer prices in Germany rose at an unchanged pace in July, with goods and services on average 2% more expensive than a year ago. Core inflation, excluding volatile prices for food and energy, remains higher at 2.7%, the same as in June. According to economists, the wave of inflation in recent years - in which the inflation rate peaked at almost 10% - has come to an end. Economists expect an average inflation rate of around 2% for Germany, Europe's largest economy, for the year as a whole. At 2% inflation, the European Central Bank (ECB) considers its goal of stable prices and thus a stable currency to have been achieved for the eurozone as a whole. Solve the daily Crossword
CBS News
4 days ago
- Business
- CBS News
CPI rose in July by 2.7% on an annual basis. Here's what that means.
The Consumer Price Index in July rose 2.7% on an annual basis, slightly cooler than economists had forecast. The CPI was expected to rise 2.8% last month, according to economists polled by financial data firm FactSet. On a month-over-month basis, the CPI rose 0.2%, in line with economists' forecasts. The CPI, a basket of goods and services typically bought by consumers, tracks the change in prices on everyday items such as food and apparel over time. So far this year, inflation has stayed at 3% or lower. June's CPI reading was 2.7%. So-called core inflation, a measure or CPI that excludes food and energy prices (which are more volatile), rose by 3.1% over the past 12 months, the highest level in five months. Economists polled by FactSet had predicted a 3% increase for that measure. Food prices rose 2.7% on an annual basis last month, the same as the overall inflation rate. Items that have seen big cost increases since last July include roasted coffee, up more than 14.8% and ground beef, which is up 11.5%. Egg prices declined 3.4% from June to July but are still up 16.4% since last year. Food away from home, which tracks the price of restaurants and other eateries, rose 3.9% over the past year. Gasoline prices, meanwhile, dropped 9.5% in July from a year earlier, the CPI data shows. Economists have been watching closely to determine how tariffs might trickle through to the CPI data. For the first several months of the year, the impact appeared to be limited, but June's reading indicated that the levies might be starting to drive up prices in certain categories such as apparel, home furnishings and appliances. Goods from more than 60 countries and the European Union are now subject to a new round of reciprocal tariffs that went into effect on Aug. 7. The figures from today's CPI report suggest that slowing cost growth cheaper gas is offsetting some of the impact of President Donald Trump's sweeping tariffs. "There is some sign of tariff pass through to consumer prices but, at this stage, it is not significant enough to ring alarm bells," Seema Shah, chief global strategist a Principal Asset Management, said in an email to CBS News after today's CPI report was released. During a call with media yesterday, Alan Detmeister, an economist at UBS, said the investment bank expects consumers will start to see the direct effects of the tariffs this year or into early next year. "It's possible that these tariff-induced price increases are a one-time price level shock that will start coming down early next year," said Detmeister. "We think they're going to be much more lasting." Analysts say that a Fed rate cut in September is likely still on the table. "Although core annual inflation is back to its highest level since February, today's CPI print is not hot enough to derail the Fed from cutting rates in September," said Shah. The Fed's mandate is to maintain maximum employment, while keeping prices down. Otherwise, the country could slip into what's called stagflation — which is when high inflation is coupled with high unemployment. FactSet gives an 88% probability of a rate cut at the meeting, which is scheduled for Sept. 16 to Associated Press contributed to this report.
Washington Post
31-07-2025
- Business
- Washington Post
The Fed's preferred measure of inflation is running hot, buoyed by tariffs
Inflation remained elevated in June, as new tariffs began to filter through more parts of the economy, according to data released Thursday by the Commerce Department. Consumer prices rose 2.6 percent over the 12 months ending in June, according to the personal consumption expenditures price index, more than economists had expected. A 'core' measure that strips out volatile food and energy prices also came in a bit hotter than forecast, rising 2.8 percent. Readings from both April and May were also revised upward, a bit hotter than initially reported.
