S.Korea's inflation quickens above forecast, keeping policymakers on watch
South Korea's annual consumer inflation accelerated to 3.4% in August, the fastest rate since early 2017, raising concerns for policymakers.
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Posted 9/4/2023, 11:55:00 PM
reuters.com
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The Bank of Korea (BOK) has maintained its key interest rate at 3.5 percent for the fifth consecutive time, as it considers the slowdown in growth and moderating inflation, while predicting that inflation may rise above its target level later this year.
Brazil's annual inflation accelerated more than expected in August, reaching 4.24%, as the central bank continues to cut interest rates in its efforts to boost the economy.
Consumer prices in Korea are expected to increase to the 3 percent range in the coming months due to a rise in international oil prices, but are projected to fall back to the 2 percent range in October.
Philippine inflation unexpectedly quickened in August due to higher food and transport costs, putting pressure on the central bank to maintain its hawkish stance, and the government may consider reducing rice tariffs to help lower domestic costs.
The Consumer Price Index is expected to show an increase in inflation in August, with headline inflation rising to 3.6% and core inflation easing to 4.4%, but the market is accustomed to this trend and the Federal Reserve is unlikely to change its rates at the upcoming meeting.
Japan's annual wholesale inflation slowed for the eighth consecutive month in August, providing relief for households and retailers affected by previous increases in raw material imports.
Inflation in the US is expected to accelerate again, with economists predicting a monthly rise of 3.6%, suggesting that price pressures within the economy remain a challenge in taming high inflation.
Inflation in the US accelerated for the second consecutive month in August due to rising costs of rent and gasoline, with the consumer price index rising 0.6% from the previous month and 3.7% from the same time last year.
US wholesale prices increased at a faster pace in August, indicating that inflation remains persistent despite interest rate hikes by the Federal Reserve.
August inflation rose to 3.7%, the highest month-to-month increase since June 2022, driven by rising gas prices, which accounted for over half of the rise, while prices for shelter and food remained elevated; however, the Federal Reserve's reaction to the data is uncertain as there are signs of prices moderating but also concerns over inflation remaining too high.
Nigeria's annual inflation rate reaches an 18-year high of 25.8% in August due to the removal of subsidies and rising prices, posing challenges for the country's largest economy.
Japanese consumer inflation grew above expectations in August, potentially signaling a move away from negative interest rates as the Bank of Japan meets to discuss its monetary policy.