One of the officially stated reasons why the Fed delayed hiking rates so far, is because inflation in late 2015 and early 2016 has been lower than the Fed's bogey (as long as one does not look at core inflation, or such critical price levels as asking rents and health insurance). And, based at least on the CPI's basket weighing of headline input prices, the Fed may have been right: the main reason for this is that tumbling energy prices have resulted in a sharp drop in gasoline prices at the pump, one of the primary drivers of Headline CPI.
WASHINGTON — U.S. retail sales declined in September and prices paid by businesses also fell, worrisome signs that consumer demand may be faltering while inflation is failing to gain traction.
The two reports on Wednesday could deepen concerns at the U.S. Federal Reserve over the readiness of the economy to absorb interest rate hikes planned to begin in the middle of next year.
How much did it cost the producer of the goods you see for sale at a retailer to actually make those goods? The answer is "it depends," and what the real answer depends upon is how much of a markup has been put on the goods at each step of their journey as they have gone from the producer to the store where you can buy it.
Canadian fertilizer company Agrium Inc reported on Tuesday a sharply lower third-quarter profit and a disappointing forecast for the current fourth quarter.
Uncertainty in fertilizer markets, combined with a late North America growing season caused many buyers to delay crop nutrient purchases, said Chief Executive Mike Wilson.
WASHINGTON — The number of Americans filing new claims for unemployment benefits dropped for a third straight week last week, the latest indication the labor market recovery was gaining traction.
Other data on Thursday showed a spike in the cost of gasoline pushed up producer prices last month, but the lack of broad price pressures gives the Federal Reserve scope to maintain its very accommodative monetary policy stance even as the job market strengthens.
US retail sales rose broadly in October, suggesting the economy started the fourth quarter with some vigor, and the first drop in wholesale prices in four months pointed to subsiding inflation pressures.
Just as moments ago a far weaker than expected retail sales report once again confounded economic watchers who, in the aftermath of the second month of surprisingly strong payrolls, were expecting the upward momentum to continue, so at the same time we got the latest producer price report, according to which PPI for final demand decreased 0.4% in July. This was well below the consensus estimate of a 0.1% print, matching the lowest estimate of polled economists, and a substantial drop from last month's 0.5% increase.
Is the worst over for the Eurozone? That's what the ECB and heads of state said at the recent economic summit in Davos.
I offer some economic reality.
Eurozone Sales Collapse 15th Month and Wholesale Prices Soar
The Markit Eurozone Retail PMI® shows Eurozone retail sales downturn extends to fifteenth month in January