Another Europe News
US and eurozone inflation rise in August
http://www.euronews.com/ Inflation in the US rose in August by the most in three years, with higher fuel costs accounting for around 80 percent of the increase.
However there was little sign of a pick-up in underlying inflation pressures. That is good news for the Federal Reserve which has just announced more stimulus measures which do push up prices.
US consumer prices increased 1.7 percent annually, up from July’s 1.4 percent, but below the Fed’s 2.0 percent target.
At the same time it was announced that US retail sales were up in August, by 0.9 percent, which was more than forecast. However details of the report point to only a modest increase in consumer spending this quarter which means muted overall economic growth.
“Consumers are not in an expansive mood. Weakening consumption is probable in the months ahead,” said Joseph Trevisani, chief market strategist at Worldwide Markets in Woodcliff Lake, New Jersey.
“The retail sales and consumer price reports give the Federal Reserve very little reason to doubt their decision to increase monetary stimulus,” said Kathy Lien, of BK Asset Management in New York.
Other data also showed stresses in the US economy. Industrial production fell 1.2 percent in August, the most in over three years, partly as a result of shutdowns to oil and gas production facilities due to Hurricane Isaac.
*Energy drives eurozone inflation up*
Eurozone inflation – at 2.6 percent from a year ago – was higher for the first time in 11 months as the EU statistics office Eurostat confirming its earlier estimate.
That is above the 2.0 percent that the European Central Bank aims for. Inflation was at 2.4 percent in May, June and July.
Fuel and transport costs were the driving factor in August. Excluding energy and food, alcohol and tobacco, whose prices also rose sharply in the month, the annual inflation rate was 1.5 percent
Transport prices were 4.8 percent higher in August than a year earlier, alcohol and tobacco prices were up 4.5 percent and housing was 4.1 percent more expensive.
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@frankxxx69
March 30, 2024 at 7:53 pm
Inflation is caused by in increase in the money supply, the only reason we don't see an instant markup of inflation when money is created is because it is created in the form of debt, T-Bills, and help by China and other countries where we pay them interest of that debt that is owed.
@frankxxx69
March 30, 2024 at 7:53 pm
Speculation big big betters drives the cost up and down.
@thefranciswatts
March 30, 2024 at 7:53 pm
its pretty funny. inflation is an increase in prices caused by the perception by everyone that they have more wealth.
when the fed prints money and infation doesn't occur – what that indicates is that the money printed isn't going to anywhere. It only goes to people who buy stocks and bonds – these markets recieve an inflationary boost – which then is percieved by the media as an economic turnaround.