Underlying Inflation Shows Signs of Pickup in US

Bloomberg’s Tom Mackenzie reports on the performance of the Chinese economy

The Labor Department said Tuesday that the March gain in the producer price index, which measures inflation pressures before they reach the consumer, followed a 0.2 percent rise in February and a 0.4 percent jump in January.

But more significant was the 12-month measure for CPI which jumped two tenths to 2.4 per cent, the second straight increase and the highest rate since March of previous year.

CAPMAS attributed the increase of inflation on a monthly basis to the rise of some commodities' prices, including vegetables by 3.9 percent, meat and poultry by 1.6 percent, fish and seafood by 5.2 percent, and fruits by 1.8 percent.

"Although core CPI is back above 2%, the slight monthly uptick in price pressures should still leave core PCE tracking a little below 2% and therefore does not change our view of the Fed hiking two more times over the remainder of the year", she said.

The Egyptian government expected inflation to decline by the end of this fiscal year (FY) from 17 percent to 13 percent, according to Minister of Finance Amr el-Garhy.

Chinese consumer and producer price inflation both undershot economist expectations in March, largely reflecting the unwinding of temporary impacts caused by Lunar New Year celebrations.

But excluding volatile food and fuel prices, "core" CPI rose 0.2 per cent, matching the consensus forecast.

Last year's weak cellphone services prices are also expected to fall out of the calculation for March PCE price index data, which is scheduled for release on April 30.

Economists had forecast the CPI unchanged in March and the core CPI rising 0.2 percent. It was the first drop in prices in nearly a year.

The Fed tracks a different index, the personal consumption expenditures price index (PCE) excluding food and energy, which has consistently run below the central bank's 2 percent target since mid-2012. "If we are correct, we would expect the Fed to hike three more times in 2018".

But the CPI remains an important benchmark and the March price data could send jitters through Wall Street, where investors get skittish when faced with signs the Fed could raise interest rates more aggressively.

The core CPI was lifted by rising rents and healthcare costs. Prices of cereals and bakery products rose 0.4 percent. That was the biggest annual increase since February 2017.

Alcoholic beverages and tobacco prices went up by 1.9% y/y.

Related News:

  • Tottenham appeal second goal against Stoke to be awarded to Harry Kane

    Tottenham appeal second goal against Stoke to be awarded to Harry Kane

    The England global pumped his fist in front of the away supporters inside the Bet365 Stadium and then hugged Son Heung-min. You can't think too far ahead. "I definitely feel I will benefit from the break", he said.
    One Man Dead After Officer-Involved Shooting in Cathedral City

    One Man Dead After Officer-Involved Shooting in Cathedral City

    Around 1 a.m., Danville police went to the 2300 block of North Main Street for a domestic assault call in a parking lot. Three officers made contact at the home and were informed by one of the children that the suspect was inside the home.
    Man City Manager Pep Guardiola Wants A Perfect Game Vs Liverpool

    Man City Manager Pep Guardiola Wants A Perfect Game Vs Liverpool

    Usually, when they go a goal or two up, they can just dictate the game, set the tempo and get their players on the ball. City is facing an uphill task to come back from a 0-3 deficit after they lost to the Reds last week.
  • Uber launches new app for drivers

    Uber launches new app for drivers

    Founder Rzepecki has been working on this concept for a decade and was one of the original creators of the dockless bike network. The company's bikes also come with dedicated locks to secure the bikes, according to startup profiling site CrunchBase.
    Salman Khan Convicted, Gets 5 Yr Jail Term

    Salman Khan Convicted, Gets 5 Yr Jail Term

    Salman's lawyers have reached out to the sessions court, which will hear the bail appeal on Friday morning. He was acquitted in the case but the Maharashtra government has filed an appeal.
    Everton's derby drought goes on after Liverpool stalemate

    Everton's derby drought goes on after Liverpool stalemate

    Jamie Redknapp has told Sky Sports that he couldn't believe Everton did not use Theo Walcott more against Liverpool . Even though Everton did enjoy bursts of pressure, Cenk Tosun was a frustrated figure up front for the most part.
  • I didn't quite have it today - Rory McIlroy

    I didn't quite have it today - Rory McIlroy

    And lastly, there are plenty of monetary benefits to winning the Masters outside of picking up a giant winner's cheque. The early rain seemed to affect Phil Mickelson and Tiger Woods , who were playing in two of the early groups.
    Hungary's Fidesz could pass 'Stop Soros' law in May

    Hungary's Fidesz could pass 'Stop Soros' law in May

    Soros' face has appeared in campaign ads and the organizations he funds have been targeted with a so-called "Stop Soros" bill. Two smaller leftist parties, DK and LMP, won nine and eight seats respectively. "This is terrifyingly serious".

    "Will meet 'Rocketman ' Kim in May or early June": President Trump

    North Korea has not broken its public silence on the proposed Trump-Kim summit, which US officials say is being planned for May. The North's foreign minister Ri Yong Ho arrived in Moscow on Monday after stopping in Beijing.
  • Asia Cup 2018 moved from India to UAE

    Asia Cup 2018 moved from India to UAE

    Asia Cup was scheduled to be hosted in India this year but after protests by Pakistan, the tournament was moved to UAE . The Asia Cup has been marred by strained Indo-Pak relations since its inception when the UAE hosted it in 1984.
    Watch Cardi B Make History as First 'Tonight Show' Co-Host

    Watch Cardi B Make History as First 'Tonight Show' Co-Host

    Less than a week after the release of Invasion of Privacy , Cardi B's debut album is receiving critical and commercial success . And Cardi has admitted she is struggling to cope with the pressures of fame, saying she's lost "control" of her own life.
    'A Quiet Place' Crushed R-rated 'Blockers' With $50-M Open

    'A Quiet Place' Crushed R-rated 'Blockers' With $50-M Open

    The Ted Kennedy scandal pic Chappaquiddick from Byron Allen's Entertainment Studios, opened to $6.2-M from 1,560 theaters at #7. It's the studio's highest opening weekend since " Star Trek Beyond " in July 2016, which opened at No. 1 with $59.2 million.


Most liked

NFL Preseason Schedule Released: Opponents, Dates, Times and More
The dates and times have yet to be determined, except for the finale, which will come on Thursday, August 30. Week three, usually the regular-season dress rehearsal, will put all eyes on the quarterbacks.

Richie Incognito Threatens Retirement: "That's it".
However, Incognito told Sports Illustrated that he would come back for one more season "at the right price". It was heavily hinted at by Martin that he was bullied by the former Cornhusker because he was black.

All of Apple Global Facilities Powered By 100% Renewable Energy
The company says it has 25 operational clean energy projects around the world, with another 15 projects now in construction. More and more Apple buildings are running in total energy autonomy and the huge Apple Park 100% operated with green energy.

YouTube to broadcast exclusive live stream from Coachella 2018
Coachella is one of the biggest musical festivals each year, making it nearly impossible to get tickets. Australian acts scheduled are Alison Wonderland, Rolling Blackouts Coastal Fever and Vance Joy .

The Gender Wage Gap Is Getting Worse for Some Women
For Mom, it's May 30; African American women are August 7, Native American women on September 27, and Latinas on November 1. Miller said IN needs to offer employees protections from intentional and unintentional discrimination.

Donald Trump cancels major trip as chemical weapons experts travel to Syria
As NPR reported , Syria accused Israel on Monday of carrying out a raid on the Tiyas air base in central Syria in a pre-dawn raid. The UN Security Council rejected a draft USA resolution, which proposed a new inquiry to establish who was to blame .

Xi Set for Landmark Economic Speech as Trump Trade Fight Simmers
China charges total duties of 25 percentage on most imported cars - a10 percent habits price plus a 15% auto taxation. Larry Kudlow, President Donald Trump's top economic adviser, said China has "got to act like" a First World country.

Scott blasts Washington to begin Senate campaign
Scott assumed office in 2011, and has been seen as a blue-chip Republican recruit to challenge Senator Bill Nelson in November. Bill Nelson raised $3.2 million in the first quarter of 2018, his campaign announced Tuesday.

Lesnar and McMahon reportedly clash after Wrestlemania main event
Naomi had never been eliminated, however, and returned to the ring to eliminate Bayley and win the inaugural Women's Battle Royal. On Sunday , the 34th annual WrestleMania will be taking place at the Mercedes-Benz Superdome in New Orleans , Louisiana.

Haley: We will respond to Syria attack
Earlier, the United Nations human rights chief said world powers were treating chemical weapons use with a "collective shrug". US Defence Secretary James Mattis yesterday pointed towards Russia's role, and said he would not rule out a military response.

Rafale deal: Rahul Gandhi attacks PM, issues 'Modi Scam Alert!'
He added, "Everybody else as far as they are concerned are animals". That's fine, that is the way they look at the world.

Guardiola: A special day for United, which is a pity
You have to defend a little better in the second half, but it is football but. When this happens it's so complicated to win the games.

Trump Predicts China Will Be First to Buckle in Trade Dispute
Trump hit back again late Thursday, instructing trade officials to consider the additional levies on $100 billion in imports. The Trump administration is also pushing for a crackdown on what it says is China's theft of U.S. intellectual property.

Ford Motor (F) Expected to Announce Quarterly Sales of $37.22 Billion
The brokerage now has a $10.00 price target on the auto manufacturer's stock, down from their prior price target of $10.78. The lower the ERP5 rank, the more undervalued a company is thought to be. 19,508,608 shares of the company were exchanged.

Europa League highlights: Arsenal, Atletico cruise
Atletico, the Europa League victor in 2010 and 2012, showed Sporting no mercy. Atletico beat Sporting Lisbon 2-0 after a record 23-second goal by Koke.