An inflation metric closely followed by the Federal Reserve showed that prices continued to moderate last month, giving the US central bank more room to leave interest rates unchanged when it meets in December.
The Personal Consumption Expenditures (PCE) price index rose 0.2 per cent in October, down from a 0.4 per cent rise in September, data released by the Commerce Department on Wednesday showed.
PCE inflation rose 3 per cent year on year, down from 3.4 per cent. Core PCE inflation, which excludes food and energy, rose 3.5 per cent.
Meanwhile, consumer spending slowed. The Commerce Department reported that consumer spending rose 0.2 per cent last month, down from a 0.7 per cent gain in September.
The lag in consumer spending – which accounts for 70 per cent of US economy activity – suggests that the economy will experience a slowdown after a third quarter that saw 5.2 per cent gross domestic product growth.
The Fed has raised interest rates 11 times since March 2022 to tamp down on inflation. By rapidly raising rates to its current range of 5.25 per cent to 5.50 per cent, the central bank has hoped to ease inflation without tipping the economy into a recession.
Following the release of recent economic data, Fed officials hinted that interest rates are likely to be left unchanged when they meet next month.
John Williams, president of the Federal Reserve Bank of New York, on Thursday said that “we are at, or near, the peak level” of the Fed's target range.
Speaking in New York, Mr Williams said interest rates are “estimated to be the most restrictive in 25 years” and that he expects they will maintain a restrictive level “for quite some time” to bring inflation back down to the Fed's 2 per cent goal.
Fed Governor Christopher Waller earlier this week also said he is “increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2 per cent”.
Thursday's report is the final inflation metric the Fed will receive before its December 12-13 meeting. Traders expect the central bank's target range will remain at 5.25 per cent to 5.50 per cent.
European arms
Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons. Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Indika
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
UAE currency: the story behind the money in your pockets
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
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