Inflation
US inflation rate drops to 6.5%, driven by lower petrol prices
As a measure of inflation, the consumer price index (CPI) increase last month was lower than the 7.1 per cent reported in November. The Bureau of Labour Statistics said the drop was aided by the cooling of petrol prices which led to a decrease of the energy index by 4.5 per cent even as other components of the index rose.
Steep rise in prices of essential commodities burning a hole in common man's pocket
Now the scenario is quite different. Even with two or three members, a nuclear family is finding it difficult to control expenses when it comes to spending on necessary items like edible oil, pulses, milk, petroleum, etc.
Growth momentum to be positive for India: RBI bulletin
"Waning input cost pressures, still buoyant corporate sales, and turn-up in investments in fixed assets are heralding the beginning of an upturn in the capex cycle in India, which will contribute to a speeding up of growth momentum in the Indian economy," the bulletin said.
European Central Bank hikes rates by 50 bps
The interest rates on the main refinancing operations, the marginal lending facility and the deposit facility will be increased to 2.5 per cent, 2.75 per cent and 2 per cent, respectively, with effect from December 21, Xinhua news agency quoted the bank as saying in a statement. The inflation outlook, which has been revised substantially higher, has been the main reason behind the ECB's move.
Nov retail inflation rate may be down, battle continues
"It is a pleasant surprise to see the headline CPI inflation print at 5.88 per cent in Nov-22 from 6.77 per cent in Oct-22 since most market participants estimated it to be above 6.0 per cent. This is an eleven-month low figure and is clearly driven by the faster-than-expected decline in food inflation which stood at 5.1 per cent in the previous month," Suman Chowdhury, Chief Analytical Officer said.
Retail inflation falls to 10-month low of 5.88%, factory output contracts
This is the first fall seen in retail inflation after a continuous rise for the past 10 months. The slide in retail inflation was mainly due to fall in food inflation, which went down to 4.67 per cent in November. In October it was at 7.01 per cent, according to data released by the Ministry of Statistics and Programme Implementation on Monday.
Pakistan in financial emergency
In a statement, PBF CEO Ahmad Jawad said: "Pakistan's economy continues to slump despite resumption of the much-awaited International Monetary Fund's (IMF) Programme. Finance Minister Ishaq Dar must announce a clear policy on the rupee to ease the pain of traders and to save the industries. "We still have foreign debt of $130 billion and $73 billion due in three years. Our deficit for next three years is a minimum of $20 to $30 billion. Additionally, super inflation is killing the poor. This is a financial emergency."
Cement makers plan to hike price by Rs 10-15/bag in Dec
According to a report by the company, in November the prices went up by about Rs 6-7/bag. While the prices remained flat in Western and Central parts of the country, the rates hardened in Northern, Eastern and Southern regions, Emkay Global said. According to the report, the cement companies are attempting further price hikes of Rs 10-15/bag across the country this month.
Expert View: Economic growth driving bull market run despite high interest rates
The Reserve Bank of India (RBI) has raised repo rates four times since May and it is expected to hike the key lending rates again on December 7. Though high interest rates help in curbing liquidity to check inflation, it does not necessarily leave a good taste in the mouth for bourses. Higher interest rates translate into a decline in stock market's value.
Investors expecting a full Fed pivot may be putting the cart before the horse
But investors who are expecting a full pivot may be putting the cart before the horse, CNN reported. Powell's admission that "the path ahead for inflation remains highly uncertain" means that rate hikes could be here for a while. Investors have been closely watching for any clues that the Fed might slow or pause its painful path of rate hikes, intended to fight persistent inflation.
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