WRAPUP 2-US consumer prices drop, but core inflation firming

Posted April 12, 2018

The Bureau of Labor Statistics report shows prices for new cars and trucks showed no increase in March, while prices of used vehicles fell 0.3 percent.

The prices of food and non-alcoholic beverages, which have the largest weight of 39% in the consumer basket, grew 2.3% on the year in March, from a 2.2% increase in February, the statistical office said in a statement. On a month-on-month basis, the PPI fell 0.2 per cent versus 0.1 per cent decline in February, as the months-long smog war that led to supply constraints and an uptick in factory prices tapered off.

Core inflation at 2.5% yr/yr also indicates that there is no meaningful inflationary pressure in the Hungarian economy.

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The announcement was made via a statement by a party spokesperson, who quoted a letter written by leader Avi Gabbay to Corbyn. LFI's relationship with the Israeli Labour party remains unaffected and we will continue our close cooperation".

Analysts polled by Reuters had expected March producer inflation would moderate slightly to 3.2 percent.

The Egyptian government expected inflation to decline by the end of this fiscal year (FY) from 17 percent to 13 percent, according to Minister of Finance Amr el-Garhy. The soft headline monthly inflation reading is likely to be temporary as a report on Tuesday showed producer prices rising solidly in March amid strong increases in health care and food costs. The gauge was up 0.2 percent from the prior month, matching the median estimate of economists. Profits at industrial firms picked up pace in the first two months of the year from December but still lagged growth for the whole of 2017. The core consumer price index, which strips out volatile food and energy prices, rose 2.0 per cent in March, slowing from 2.5 per cent in February.

The advance in the core CPI brought the three-month annualized gain to 2.9 percent, after 3.1 percent in February. "If we are correct, we would expect the Fed to hike three more times in 2018".

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The new record holder was born on July 25, 1905 - the same year Teddy Roosevelt was inaugurated as the 26th president of the US. Although he believes his longevity is because of soaking in hot springs and eating candies , his daughter does not think so.

The cost of other major household expenses such as rent and medical care rose more sharply, however, as did prices for plane flights and auto insurance. Stocks on Wall Street fell as investors anxious about rising tensions between the United States and Russian Federation over a possible US military action against Syria. Food prices edged up 0.1 percent after being unchanged in February.

Economists were looking for an annual increase of 3.2%, down from 3.7% in February.

The price of alcoholic drinks and tobacco products increased by 1.3%, in particular those for tobacco goods by 1.7%, alcoholic drinks by 0.8%.

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But many in Washington seem to have another misguided assumption about those talks, analysts here say. Till three weeks ago, dilemma lingered over the first-ever meeting between Trump and Kim.