US Consumers Could Face High Prices for Longer Due to a Weaker Dollar

US inflation has steadily cooled since mid-2022, thanks to large interest-rate increases by the Federal Reserve. However, a four-month drop in the dollar is threatening to derail that trend by raising the cost of imported goods. The dollar index has fallen by more than 11% from a peak reached in late September. US consumers are … Read more

Wholesale price inflation declines to 4.95% in December 2022

India’s wholesale price inflation slipped to a 22-month low of 4.95% in December 2022 from 5.85% in November, fostering hopes of further easing in the price rise faced by consumers, as producers may slow down the pass-through of input costs at the retail level. This is the second month in a row that wholesale inflation … Read more

Bank of England warns higher rates and inflation to squeeze households in 2023

The Bank of England warned on Tuesday about “significant pressure” on households and businesses due to higher inflation and borrowing costs, but said they were more resilient than before the global financial crisis. The BoE had previously flagged that Britain was entering a lengthy recession and, with inflation at a 41-year high and a sharp … Read more

Life beyond the US technology layoffs

In the past few weeks, a number of high-profile US tech companies have announced layoffs. Meta is laying off 11,000 workers and Amazon 10,000. The ongoing purge at Twitter could see its employee base of 7,500 shrink by about 75%. About 42,000 workers in US tech companies lost their jobs in November alone, according to … Read more

How a mysterious screenshot spurred $450-billion rally in China

Nobody is quite sure who wrote it, when it was written or if it’s even true. But a screenshot of four paragraphs detailing a China reopening plan was enough for traders to scoop up stocks for two days running. The unverified post, which contained black characters on a white background with no identifying marks, first … Read more

Fidelity Macro Expert Puzzled With Fed’s Extreme Actions: ‘Inflation Will Presumably No Longer Be Clear, Present Danger’

Jurrien Timmer, the director of global macro in Fidelity‘s Global Asset Allocation Division, has raised questions on why the U.S. Federal Reserve is committing to an extreme policy when inflation will no longer pose danger. What Happened: Timmer pointed out that the Treasury Inflation-Protected Security market and the Federal Reserve’s expected terminal rate were moving in the same … Read more

Banks say NPAs may rise in MSME sector in next 6 months

The pressure on asset quality of loans to micro small and medium enterprises (MSMEs) is set to increase, leading to a rise in non-performing assets (NPAs) in this segment in the next six months, according to a survey by the Federation of Indian Chambers of Commerce & Industry and the Indian Banks’ Association. Some of … Read more

At 10.1%, Britain’s inflation hits 40-year high as food prices soar

Britain’s rate of inflation has surged to a new 40-year high as the Consumer Prices Index (CPI) rose to 10.1 per cent on Wednesday, with increasing food costs the biggest driver of the latest hike. According to the Office for National Statistics (ONS), annual inflation for essential food items is now running at 12.7 per … Read more