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1. U.S. Inflation Hits Highest Level Since 2008 2. Inflation Rate in U.S. Climbs to 3.6%, Highest Level Since 2012 3. Fed's Powell: Inflation Is Rising, But It's Not a Short-Term Problem 4. How Inflation Can Affect Your Investments 5. What Is Inflation and How Does It Affect the Economy? 6. 8 Simple Strategies to Protect Yourself From Inflation 7. What You Need to Know About High Inflation 8. Corporate Profits Feel the Squeeze as Inflation Rises 9. How Inflation Affects Your Finances 10. Video: What Is Inflation and How Does It Impact You?
The focus today is the euro area inflation print. Inflation was expected to be 2.4% y/y in December, up from 2.2% in November. But with Germany rising 50bp and both Spain and Portugal rising 40bp, inflation will most likely come in higher. We expect headline inflation at 2.6% y/y, while we expect core inflation at 2.8% y/y. In our view, an upside surprise in December inflation should not alter the near-term outlook for the ECB, as the focus remains on weak growth prospects. We also receive data on unemployment, which we expect to show a small uptick to 6.4% from 6.3%, as surveys have pointed to a softening in the labour market; overall, however, the unemployment rate remains historically low.
It further said, the headline inflation eased for the second successive month in December, although the stickiness in food inflation warrants careful monitoring of second order effects. Get more Economy & Infra News and Business News on Zee Business.
Global headline inflation is expected to decline to 4.2 per cent in 2025 and to 3.5 per cent in 2026, converging back to target earlier in advanced economies than in emerging markets and developing economies, it added. Get more Economy & Infra News and Business News on Zee Business.
In Australia, the Q4 CPI printed modestly to the downside of Westpac’s expectation and the market consensus, headline inflation rising 0.2% (2.4%yr). Cost-of-living measures, most notably the various state and federal government energy rebates, played an important role in suppressing headline inflation, with electricity prices falling –9.9% (–25.2%yr). That said, inflationary pressures are abating broadly across the consumer basket. Most notably in the housing group, including rents and homebuilding costs, but also across fuel, clothing/footwear and household contents/services. Price pressures are still showing persistence in a few sub groups though. While total services inflation ticked down at year-end (4.6%yr in Q3 to 4.3%yr in Q4), downward revisions to childcare costs were at play. The narrower market services inflation measure continues to hover just north of 4.0%yr, with increases in holiday travel and insurance costs primary supports.
Today we got the US inflation (CPI) data for January. Both headline inflation and core inflation (excluding food and energy prices) came in higher than expected. Headline inflation was 3.0% year-over-year, while core inflation rose to 3.3% year-over-year.This is hardly good news. However, we should be very careful about drawing too many conclusions from month-to-month…