February 8, 2024
United States:
Risk of Big US Inflation Revision Puts Policymakers, Investors on Edge
Mention the government’s annual revisions to seasonal adjustment factors for monthly inflation data and you’re likely to make eyes glaze over, even among hardcore economics nerds. Not this year.
Economists on Wall Street and in Washington will be tuning in for this year’s update, due Friday morning, because of what happened a year ago: The revisions to the consumer price index — typically small and therefore ignored — were large enough to cast doubt on overall inflation progress.
Europe:
ECB’s Wunsch Favors Waiting for More Data Before Cutting Rates
European Central Bank Governing Council member Pierre Wunsch said he’d prefer to wait for more data — particularly on workers’ pay — before deciding to start cutting interest rates.
Wage growth is running at a level that’s not compatible with the ECB’s 2% inflation target, the Belgian official said Thursday. If it wasn’t for the increase in salaries, monetary easing could already begin, he said.
Asia:
China’s Economy Under Pressure as Inflation Drops at Fastest Pace in 14 Years
China’s consumer prices fell last month at the fastest pace since the global financial crisis, piling pressure on the government to step-up support for a stumbling economic rebound that’s roiling markets.
The consumer price index dropped 0.8% in January from a year ago, the National Bureau of Statistics said Thursday, the weakest since September 2009. The drop was worse than economists’ expectations for a 0.5% decline.
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