Tag: Consumer Price Index

Global Markets Cheer on Better Than Expected Inflation Data

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Good news for global markets Yesterday’s impressive rally in U.S. stocks and bonds has gone worldwide this morning, as investors see central banks making gains in their fight against inflation. Adding to the good news was a breakthrough in the House last night that could avert a government shutdown. S&P 500 futures signal further gains at the opening bell. The question now is whether this represents a false dawn on inflation, or the start of a durable decline in rising costs — and interest rates. Here’s what’s exciting investors: Yesterday’s…

China Consumer Prices Fall, Renewing Fears of Deflation

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Prices are falling again in China after a two-month reprieve, with households and businesses wary of spending even as state-controlled banks pump money into the construction of more factories. The decline in prices could put China on the cusp of a pernicious economic condition called deflation, in which companies and workers find that they receive less money for their goods or their work, while their debts remain as heavy as ever. In the United States, by contrast, inflation has been brought down substantially, although consumer prices are still higher than…

Federal Reserve Walks a Tightrope Between Inflation and Recession

Chin@Strategy

In an interview, James D. Hamilton, professor of economics at the University of California, San Diego, and a leading expert on the economic effects of oil shocks, said they had “made major contributions to recessions over many decades.” At current oil price and supply levels, the effects of the Russian war “are fairly manageable for the American economy.” But Professor Hamilton pointed out that Russia’s oil, which amounts to about 10 percent of world production, could not be easily replaced if totally cut off — an outcome that he does…