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U.S. inflation is at an almost four-decade high, price expectations are rising in Japan and soaring energy costs are squeezing European households.
Germany’s economy may have shrunk in final three months of 2021, while the World Bank shaved global growth estimates for this year because of the coronavirus, persistent supply chain disruptions and less fiscal support. In Brazil, inflation clocked in at about 10% last year.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
U.S.
Consumer prices are likely to extend their eye-popping gains after soaring last year by the most in nearly four decades, further burdening Americans and ramping up pressure on Federal Reserve policy makers to act. Last year, the increase in the consumer price index was largely due to high goods inflation. Excluding food and energy, the price index of goods surged 10.7%, the largest 12-month advance since 1975.
Consumer sentiment declined in early January by more than forecast amid mounting concerns about soaring inflation and the fast-spreading omicron variant. Americans expect prices will rise at an annual rate of 3.1% over the next five to 10 years, the most since 2011.
Mortgage rates in the U.S., tracking a jump in yields for 10-year Treasuries, rose for a third straight week, reaching the highest point in almost two years. Signs point to borrowing costs rising further, which would increase the burden on home buyers who are already stretching to afford a purchase.
Europe
Soaring energy prices are putting the squeeze on European consumers desperate for some relief after two years of coronavirus, lockdowns and job worries. The financial pain is taking a toll on households, who are more worried about prices than at any time this century, and feel less inclined to splurge, according to a European Commission survey.
Germany is headed for its second recession of the pandemic after the emergence of the coronavirus’s omicron strain compounded drags on output from supply snarls and the fastest inflation in three decades.
For five years, Emmanuel Macron has been fending off challenges from the fringes of mainstream French politics. But as he seeks reelection in April, the president who was nurtured in the top echelons of the French technocracy has a potential knockout punch to throw: the robust economy.
Asia
Inflation expectations for Japanese households jumped to the highest in 13 years, showing how costlier energy is influencing sentiment even as overall price gains remain far below the Bank of Japan’s target.
Emerging Markets
Brazil’s consumer prices rose more than expected last year, dogging the central bank and its efforts to bring inflation back to target.
World
What do workers really want in a job? The answer depends in part on where they’re from, according to a global survey from management consultant Bain & Co.
Covid-19 flare-ups, diminished policy support, and lingering supply-chain bottlenecks will see the global economic recovery cool more than previously estimated in 2022, after last year’s expansion clocked the fastest post-recession pace in eight decades, the World Bank said.
Stockpiles of metals including aluminum and nickel tracked by the market’s biggest exchange fell again, stoking worries about tighter supplies that’s sent prices rallying recently. Metals prices have climbed lately as production outages and smaller inventories revive worries about global supplies of materials crucial to manufacturing and the green-energy transition.
Central bankers in Romania and South Korea increased interest rates by 25 basis points this week, following peers in South America and eastern Europe to use their first monetary policy meetings of the year to increase borrowing costs to temper surging inflation.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
