FirstFT: US inflation cools to 3% as interest rate hikes take hold

sanzida963

Fell sharply to 3 percent in June, sending the dollar lower and highlighting the Federal Reserve's relative success in controlling price pressures. The improved picture in Wednesday's data contrasts sharply with other advanced economies, such as the United Kingdom, where the Bank of England is struggling to control inflation of 8.7 percent. Meanwhile, China's economy teetered on the brink of deflation in June, with a flat annual CPI, adding to calls for more stimulus. Major US stock indexes hit 15-month highs; the two-year Treasury yield, which moves with interest rate expectations, fell to a two-week low of 4.73 percent; and the US dollar index, which measures the greenback against a basket of six currencies, hit its weakest point in 15 months. The annual rise in the consumer price index slowed from 4% in May to 3% in June, the lowest inflation rate since March 2021, compared with expectations of . “After a punishing period of high inflation that eroded consumers' purchasing power, the fever is ending,” said Bill Adams, chief economist at Comerica Bank.

Here's what I'm keeping an eye on today: Economic data: The International Energy Agency and OPEC will publish monthly oil market reports. France has the consumer price index and HICP inflation rate figures for last Job Function Email Database month, while the final producer price index data for June is due from the US. South Korea interest rate decision: Economists expect the Bank of Korea to keep rates at 3.5 percent for the fourth straight meeting. (Bloomberg) Meetings: The EU-Japan summit begins in Brussels, attended by European Council President Charles Michel, European Commission President Ursula von der Leyen and Japanese Prime Minister Fumio Kishida. Thailand's high-stakes vote for prime minister: Parliament will vote for a new prime minister. Pita Limjaroenrat, whose progressive Move Forward party won a big victory in May's general election, faces several obstacles to becoming prime minister and supplanting the military-backed government.



The Guardian) Five more top stories 1. Elon Musk has launched xAI, an artificial intelligence company that aims to challenge the dominance of the owner of ChatGPT. Open AI. The company will be led by Musk, who also secured thousands of Nvidia GPU processors, which are needed to build large language models that consume large amounts of content. Here are more details on Musk's plans for AI. 2. At the NATO summit this week, the allies were careful to emphasize their strong support for Ukraine. before the invasion of Russia. But after Volodymyr Zelenskyy criticized NATO for its "absurd" lack of a clear timeline for Ukraine's entry, tensions began to come to light. Here's more on the frustrations between Ukraine and its allies. 3. EY China has refused to pay fees owed to its global headquarters for more than a year in a dispute over IT services. The Chinese arm says services cannot be fully used after Beijing tightened data security rules, according to people familiar with the matter.