Our Scans · (FS.6.07) Inflation · Weekly Summary

• [New] On inflation, the RBI Governor said, it is expected to be moderate despite periodic humps, India's inflation rose to 6.2% in October from 5.5% in September because of food inflation. Economic Times
• [New] Rate setters will likely be concerned enough over inflation risks from the Budget and growing global headwinds to resist signing off back-to-back interest rate cuts. Kent Online
• [New] While interest rate cuts in the United States could provide regional central banks with room to ease monetary policy, currency depreciation and core inflation pressures suggest a gradual approach to rate reductions. Insurance Business
• [New] Despite robust domestic fundamentals in strong growth and falling inflation, Asia FX will have to navigate the dual challenge of higher US interest rates and likely higher tariffs by the US in 2025, resulting in a stronger USD. ING Think
• [New] Labour will find little comfort in the US, where the Biden administration last week joined the conga line of incumbent governments punished for high inflation. ABC News
• [New] Inflation will remain elevated for a few months before gradually easing towards the Reserve Bank of India's target rate. Economic Times
• [New] A Trump presidency could hinder UK growth and exacerbate inflation, potentially prolonging the ongoing cost-of-living crisis. NewbridgeFX
• [New] Nafis highlighted that any changes in US fiscal policies, such as increased spending or tax adjustments, could lead to shifts in the dollar's strength, impacting Malaysia's trade balance and inflation. BusinessToday
• [New] An endless trade war based on tit-for-tat tariffs will drive inflation higher in the US and bite into Trump's blue-collar, rural voting base. The Conversation
• [New] Fears that Trump could impose tariffs on Chinese and Mexican imports, could spark a reacceleration of inflation and disrupt supply chains. FXStreet
• [New] Trump's proposed tariffs on imports have sparked fears of a trade war that could lead to higher costs for UK businesses and consumers, impacting both inflation and growth. Business Matters
• [New] S. Dollar Strengthening: Trump's policies could lead to a 3% dollar rally, as inflation and higher interest rates strengthen the U.S. dollar. Optimize IAS
• [New] Tariff-Driven Inflation and Higher Interest Rates: Proposed tariffs on imports, especially a 60% tariff on Chinese goods, could increase construction costs, driving up prices on housing and commercial projects. RCLCO Real Estate Consulting
• 89% of firms are expecting increased revenues in the current financial year and 39% of firms increased revenues above the rate of inflation in 2024. Law Gazette
• Trump's proposed combination of tariffs, tax cuts, increased federal spending and mass deportation of undocumented immigrants could increase inflation by as much as 1 percentage point, some economists project. CBS News
• Another expected reduction of the Fed fund rate could open the way for gradual resumption of easing in Serbia, although inflation remains rather sticky over the recent past. BNN Bloomberg
• Trump's threat to apply tariffs up to 20% on all imported goods could hurt Australia's economy with higher inflation and lower growth, especially if imposed quickly. ABC News
• UK interest rates could take longer to fall further after the Bank of England forecast that inflation will creep higher after last week's Budget. BBC News
• Central banks in the US and Europe will probably keep interest rates high through the first half of 2024 to get persistent inflation down. Mitsubishi Research Institute, Inc.
• US stock markets rose, despite concerns that higher inflation would force the US Federal Reserve to scrap plans to cut interest rates, keeping them higher than previously expected. The Guardian
• While core inflation remains above central banks' targets, and services inflation and wages growth are still elevated amid weak productivity growth (outside of the United States), disinflation is progressing broadly as expected. Reserve Bank of Australia

Last updated: 19 November 2024