CPI Inflation at 5.21%, hits 17 months high in December 2017

13 Enero, 2018, 05:05 | Author: Arnold Perez
  • The Nikkei India manufacturing Purchasing Managers’ Index rose at the fastest rate in five years in December to 54.7 from 52.6 in the previous month

Shoppers look over shoes on sale at a Macy's store in New York, NY, U.S. on November 23, 2012.

Investors' already-firm expectations rose for a Fed interest-rate increase in March, as the data could help calm an increasingly heated debate among central bank officials over why inflation has stayed relatively placid despite solid economic growth and the lowest jobless rate since 2000.

A modest rise in consumer prices in December and solid growth in retail sales bolstered expectations that inflation is firming after a long run of softness and that US economic growth ended 2017 on a robust note.

The Consumer food price index (CFPI) in December stood at 4.96 per cent compared to 4.42 per cent in November 2017.

Most of the pressure here in December's inflation was tied to housing and medical costs.

"And, with inflation expected to continue to taper up all the way until the middle of the year, we do not expect any kind of changes in the policy rate until the end of the year", says Tirthankar Patnaik, India Strategist at Mizuho Bank.

More news: Detective Pikachu Finally Coming to the West This March
More news: National Football League reportedly investigating whether Raiders violated Rooney Rule in hiring Jon Gruden
More news: Nueva York demandó a cinco importantes compañías de petróleo por calentamiento global

The yield for the 10-year benchmark note climbed to 2.583%, from 2.531%, while the 30-year bond yield was higher at 2.894%, versus 2.863%. USA stock index futures pared gains. Meanwhile, the IIP growth for October 2017 has been revised downwards to 2% from the provisional estimates of 2.2 released last month.

Last month, the price of services fell 0.2 percent after rising for nine straight months. It increased borrowing costs three times in 2017. The energy index rose 6.9% in the last twelve months. The cost of motor vehicle insurance increased 0.6 per cent. Economists were expecting to see a 0.2% rise in price pressures.

After maintaining a benchmark policy rate at a record low near zero for seven years, the Fed started gradually raising rates modestly - once in December 2015 and again in December 2016.

Retail inflation touched 17-month high in December due to strengthening of food and crude oil prices, dashing hopes of interest rate cut in the near future. The nationwide average for gas is $2.52, up from $2.35 a year ago, according to AAA. Food away from home grew 0.2%. Sales at auto dealerships rose 0.2 percent.

Earlier this month, Finance Minister Arun Jaitley had told Parliament that inflation had increased owing to a seasonal rise in vegetable prices and the higher house rent allowances disbursed to government employees under the 7th Pay Commission recommendations. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. The Commerce Department previously said they had increased 0.8 per cent in November.

Recomendado:



Popular

La inflación de diciembre fue de 3,1%: en 2017, de 24,8%
Durante el último mes del año, los precios subieron 3,1 por ciento, el dato más alto durante la presente gestión nacional. En el área metropolitana, la inflación fue del 3,4% en Diciembre y del 25 por ciento en 2017, según el organismo oficial.

The Consumer Electronics Show lost electricity because irony knows no bounds
NV Energy, the region's power supplier, hasn't responded to requests for comments. Multiple reports noted the outage hit around 11:15 PT.

$1 Trillion of Bonds Exit Negative-Yielding Zone in 8 Days
In precious metals, gold edged up 0.4% without any major news behind the move, likely boosted by the softer United States dollar. Japan's Nikkei, however, dropped for a third day, shedding 0.2 per cent for the day and 0.3 per cent for the week.

Concierto de Bad Bunny será el 23 de febrero — Confirmado
Además, el tema del artista español ya se encuentra disponible en la plataforma Spotify. En los clips se ve que la historia de la canción se desarrollará en el mar.

NFL Divisional round: Picks, predictions and more
The Eagles are the top-ranked unit against the run, but less impressive against the pass at 17th in pass yards allowed. In the Falcons' three games against the Eagles since 2012, Jones averaged eight catches for 133 yards and a touchdown.

Dayton mayor expected to exit OH governor's race Friday
Former state lawmaker Connie Pillich, retiring Ohio Supreme Court Justice William O'Neill and state Sen. The 71-year-old Kucinich is a former Cleveland mayor and two-time presidential candidate.

La gran noticia que involucra a Luisana Lopilato y Michael Bublé
En noviembre de 2016, la familia tuvo que interrumpir un viaje a Argentina porque creían que Noah sufría paperas. Si bien los protagonistas no contaron nada, la noticia fue confirmada por Laura Ubfal en su portal.

Canadian men's Olympic hockey team unveiled
The roster announcement, carried live on several networks, was made at the Hall of Champions at Hockey Canada's office in Calgary. There will be no Newfoundlanders pulling on a Canadian Hockey Jersey when the Winter Olympics kick off next month in South Korea.

Queen Elizabeth's bra-fitter says book cost the company royal its warrant
The author and bra-fitter wrote: "I never met William or Harry - though ( Princess Diana ) was always talking about them". Buckingham Palace declined to comment. 29 years later she sold her stake for £8million, the Daily Mail reported.

Putin Says Kim Jong-Un 'Won This Round' Against Donald Trump
Trump has called Kim a "maniac", a "bad dude", mocking him as "short and fat" and slammed him repeatedly as " rocket man ". Chun was also a national security adviser to South Korean President Moon Jae-in while he was running for office.