(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.
Inflation continues to rattle the global economy, forcing monetary authorities to strengthen efforts to extinguish it.
Consumer prices in the US increased last month by more than forecast, which will likely prod the Federal Reserve to raise interest rates by 75 basis points for a third-straight meeting this coming week.
UK inflation remained close to a four-decade high and the economy barely expanded as industrial production and construction weakened. In Argentina, inflation shot up the most in three decades and prompted the central bank to raise its benchmark rate to a whopping 75% in an effort to prop up its currency.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
US
US consumer prices were resurgent last month, dashing hopes of a nascent slowdown and likely assuring another historically large interest-rate hike from the Fed. Against a backdrop of robust labor market conditions that’s driven up wages, odds favor the central bank becoming that much more aggressive to take more wind out of the economy’s sails with the goal of bringing inflation down.
President Joe Biden hailed a tentative railway labor agreement, one that he helped broker and that averted an economically perilous nationwide work stoppage less than two months ahead of the November midterm elections. The stoppage would have been the largest of its kind since 1992 and threatened to cost the world’s biggest economy more than $2 billion a day.
Europe
Britain’s inflation eased from its highest rate in four decades after petrol declined, still leaving the pace of price increases uncomfortably high for the Bank of England. The Consumer Prices Index rose 9.9% in August from a year ago, compared with 10.1% in July.
The UK economy recovered more slowly than expected from a slump triggered by an extra public holiday in June, with industrial production and construction both shrinking.
Asia
Japan’s trade deficit ballooned to a record in August that highlights the increasing pain of the weak yen as import costs spiral upwards, adding to pressure on the country’s economic recovery.
China’s economy showed signs of recovery in August as Beijing rolled out stimulus measures to counter a slowdown, although a property market slump and Covid outbreaks continue to weigh on the outlook. Industrial production, retail sales and fixed-asset investment all grew more last month than economists expected.
Emerging Markets
Argentina’s central bank raised its benchmark interest rate for the ninth time this year to 75% in a bid to shore up its currency and curb inflation nearing 100%. Central bankers made incremental rate increases early in the year but over the past three months they have ramped up hikes, with a combined 23 percentage point increase since July.
India’s central bank, which last month vowed to do “whatever it takes” to fight inflation, is expected to refocus efforts toward its own version of a soft landing where it tackles price gains while trying to ensure growth remains among the world’s fastest.
From Mexico to Brazil, persistently high inflation is widening the gap between rich and poor in what is already the world’s most unequal region. It’s stoking political upheaval that could be a foretaste of what lies ahead as policy makers the world over struggle to meet demands to increase social spending.
World
Around the world, soaring borrowing costs are squeezing homebuyers and property owners alike. From Sydney to Stockholm to Seattle, buyers are pulling back as central banks raise interest rates at the fastest pace in decades, sending house prices falling.
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.
