Low Inflation Paves the Way for Global Central Bank Stimulus
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U.S. consumer prices increased 1.7 percent in the 12 months ended in June, matching expectations. The low inflation reading paves the way for additional easing by the Fed. Currently, expectations for QE3 are mixed, with many looking toward Ben Bernanke’s senate testimony today for clues on about futures moves.
Overnight data showed that U.K inflation unexpectedly fell to its lowest rate in 2 1/2 years in June as clothing prices plunged. June consumer prices rose 2.4 percent from a year earlier, down from 2.8 in May. Analysts were expecting inflation to remain flat. The 0.4 percent decline was the biggest June decline since records began in 1996, according to Bloomberg data.
European inflation yesterday was reported inline at 1.6 percent.
Yesterday New Zealand's annual inflation slowed to its lowest level in nearly 13 years, with June inflation falling short of expectations at 1 percent compared to 1.6 percent last month, and 1.1 percent expected.
Earlier in the month, China data showed consumer inflation eased in June, slipping back to its lowest level in over 2 years. The June consumer price index rose 2.2% year-on-year compared to a 3% rise in May. This is well below the government’s target of 4% for the year.
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Overnight data showed that U.K inflation unexpectedly fell to its lowest rate in 2 1/2 years in June as clothing prices plunged. June consumer prices rose 2.4 percent from a year earlier, down from 2.8 in May. Analysts were expecting inflation to remain flat. The 0.4 percent decline was the biggest June decline since records began in 1996, according to Bloomberg data.
European inflation yesterday was reported inline at 1.6 percent.
Yesterday New Zealand's annual inflation slowed to its lowest level in nearly 13 years, with June inflation falling short of expectations at 1 percent compared to 1.6 percent last month, and 1.1 percent expected.
Earlier in the month, China data showed consumer inflation eased in June, slipping back to its lowest level in over 2 years. The June consumer price index rose 2.2% year-on-year compared to a 3% rise in May. This is well below the government’s target of 4% for the year.
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