Inflation | GlobalPost

Fed stands by stimulus and says tax increases and spending cuts have slowed economy

The Canadian PressMay 1, 2013 15:00

WASHINGTON - The Federal Reserve on Wednesday stood by its aggressive efforts to stimulate the economy and reduce unemployment. And it sent its most explicit signal to date that tax increases and spending cuts that kicked in this year are slowing the economy. "Fiscal policy is restraining economic growth," the Fed said in a statement after a two-day policy meeting.

Canadian dollar lower as negative Chinese, U.S. data sends commodities tumbling

The Canadian PressMay 1, 2013 09:01

TORONTO - The Canadian dollar closed slightly higher Wednesday as a raft of negative economic data raised demand concerns and depressed commodity prices. The loonie rose 0.06 of a cent to 99.2 cents US. There was at least one bit of good news: the U.S. Federal Reserve announced that it will carry on with its economic stimulus measures for some time to come. That means interest rates stay near zero until the jobless rate hits 6.5 per cent from its current level of 7.6 per cent.

Indonesian inflation slows to 5.57 percent in April

Agence France-PresseMay 1, 2013 03:45

Indonesian inflation eased to 5.57 percent on-year in April due to lower food prices after the government eased some import restrictions, official data showed on Wednesday. It slowed from 5.90 percent in March, but it was still above the upper limit of the central bank's target range of 3.5-5.5 percent. In particular, a "drastic drop in garlic prices" helped to push inflation lower last month, said statistics agency chief Suryamin, who like many Indonesians goes by one name.

US Fed, after meeting, expected to maintain its efforts to strengthen a still-subpar economy

The Canadian PressMay 1, 2013 01:45

WASHINGTON - The Federal Reserve is widely expected Wednesday to stick with its aggressive efforts to strengthen a still-subpar economy. The Fed will likely end a two-day meeting with a statement noting that job growth remains modest and that it's standing by its campaign to keep loan rates at record lows to help ease unemployment. The central bank's efforts include buying $85 billion a month in Treasurys and mortgage bonds to try to keep long-term borrowing costs down.

S.Korea's inflation slows to 1.2% in April

Agence France-PresseApril 30, 2013 21:00

South Korea's inflation slowed to 1.2 percent on-year in April, reflecting falling oil and vegetable prices, government data showed Wednesday. The inflation rate was 0.1 percentage point down from a 1.3 percent on-year gain in the previous month, Statistics Korea said. It remained at the subdued 1 percent level for a sixth consecutive month, well below the central bank's target band. Core inflation, which excludes volatile oil and food prices, rose 1.4 percent on-year in April, down from a 1.5 percent rise in the previous month.

BOJ expects inflation rate to reach 1.9% in FY 2015, near 2.0% target

Kyodo News InternationalApril 30, 2013 15:51

The Bank of Japan said Friday it expects the country's inflation rate to reach 1.9 percent in fiscal 2015, almost achieving its 2 percent price target in about two years, backed by its aggressive monetary easing policy to beat deflation. The BOJ apparently expects the new measures will help it achieve the target, especially after Japan averted criticism of its monetary policy at a meeting of Group of 20 finance chiefs last week, which recognized that the BOJ's aggressive easing steps are intended to stop deflation and support domestic demand.

BOJ likely to specify inflation may reach 2% in FY 2015

Kyodo News InternationalApril 30, 2013 15:50

The Bank of Japan is likely to specify that inflation in Japan may reach 2 percent in spring 2015 in its semiannual economic outlook report to be released Friday, as the central bank aims to clarify its policy of achieving the inflation target in about two years, sources close to the matter said. At a one-day policy meeting chaired by Governor Haruhiko Kuroda earlier in the day, the central bank maintained its current monetary easing policy to gauge the effects of a set of new policy steps introduced earlier this month to fight deflation.

Japan consumer prices down for 5th straight month

Kyodo News InternationalApril 30, 2013 14:39

Japan's key consumer prices fell 0.5 percent in March from a year earlier, marking the fifth straight month of decline, due partly to a drop in durable goods prices, the government said Friday, underscoring that the country remains mired in deflation. The core consumer price index, excluding volatile fresh foods, stood at 99.5 against the 2010 base of 100, the Ministry of Internal Affairs and Communications said. Private-sector economists had forecast the index would drop.

Eurozone inflation eases to 1.2% in April

Agence France-PresseApril 30, 2013 10:45

Inflation across the 17-state eurozone eased further in April to 1.2 percent, comfortably below the European Central Bank's target of near-but-below two percent, official data showed Tuesday. Taken as a whole, April marked the third month in a row that the average annualised rate of price rises throughout the currency area -- home to some 340 million people -- came in on target, after 1.7 percent in March and 1.8 percent in February, according to the EU's statistics office Eurostat.

Fed likely to stick with low-rate policies amid still-modest economic growth and low inflation

The Canadian PressApril 30, 2013 00:45

WASHINGTON - A combination of scant inflation and still-modest U.S. economic growth will likely lead the Federal Reserve this week to maintain its drive to keep borrowing costs at record lows indefinitely. The Fed has said it plans to keep its key short-term interest rate near zero at least until the unemployment rate dips below 6.5 per cent from its current 7.6 per cent.