September’s consumer price index for Canada put out any hope that inflation will get back under control anytime soon and only added pressure on the Bank of Canada to maintain its aggressive interest rate hikes. Canada’s CPI rose by 6.9% on a year-over-year basis, slightly down from 7% in August, ... READ MORE >
Inflation
End of an era? Bond market selloff prompts a new regime
The dramatic fiscal and monetary response to the pandemic has elicited a structural break in globalization, growth and liquidity regimes that have driven the world's economies over the past 25 years. Gone is the hyper-globalization that was the primary driver of low inflation and low interest ... READ MORE >
Consumer sentiment rises despite worsening inflation expectations
U.S. consumer sentiment rose for the fifth straight month to 59.8 in October but a worsening inflation outlook clouded the otherwise positive news, the University of Michigan reported on Friday. Solid income growth in a tight labor market is keeping household financial conditions strong as sentiment ... READ MORE >
Retail sales stay flat as inflation remains elevated
American consumer spending was unchanged in September, held back mainly by auto and gasoline sales as prices at the pump and auto dealers fell on the month, the Commerce Department reported on Friday. The data was not adjusted for inflation. With inflation controlled for, sales volume was also flat ... READ MORE >
As the U.S. dollar surges, the potential for a currency crisis grows
The liquidity crunch driving the withdrawal of bond purchases by global central banks is creating the conditions of a classic policy quandary that is stoking international financial instability. The challenge in balancing growth, inflation and financial stability is now being exacerbated by ... READ MORE >
Inflation remains hot, sticky and elevated, implying another supersized rate hike
Both top-line and core inflation remain hot, sticky and elevated, which implies that the path of monetary policy demands another supersized rate increase of 75 basis points at the Federal Reserve’s November meeting. The September Consumer Price Index increased by 0.4% on the month and was up by 8.2% on ... READ MORE >
RSM UK Financial Conditions Index implies rising risk of instability
The RSM UK Financial Conditions Index is warning of a dramatic increase in credit risk that, along with the depreciation of sterling, has the potential to derail commercial activity in the United Kingdom. Growing financial stress has exposed the difficulties that global central banks face in ... READ MORE >
Producer prices rebound, keeping pressure on Fed to raise rates
The Producer Price Index rose by 0.4% in September after falling for two straight months, the Bureau of Labor Statistics reported on Wednesday. The series has been closely watched recently as an additional gauge for inflation. On a year-over-year basis, the producer inflation rate was 8.5%, which will ... READ MORE >
Canada’s job market shows little sign of slowing
Canada’s economy in September reversed the slowing labour market of the summer, adding 21,100 jobs while unemployment fell to 5.2%, according to government data released Friday. Employment among women in their prime working age grew for the first time since May as children headed back to school, ... READ MORE >
U.S. jobs report: Hiring slows as another 75-basis-point rate increase looms
The U.S. economy is proving far more resilient in the face of sustained pricing pressures than otherwise thought a short time ago. The economy added 263,000 jobs in September, slower than the 315,000 jobs in August but still a sign of a resilient labor market, according to Labor Department data ... READ MORE >