Connect with us

Economy

US Consumer Price Index Unchanged in October

Published

on

Consumer

The U.S. cost of living held steady in November, underscoring scant inflation that is well below the Federal Reserve’s goal.

The consumer price index was unchanged after a 0.2 percent gain in October, Labor Department figures showed Tuesday. Excluding volatile food and fuel, the so-called core measure rose 0.2 percent for a third straight month.

The cheapest crude oil since the global financial crisis in 2009 may keep inflation below the Fed’s 2 percent goal even as it boosts Americans’ purchasing power. Policy makers, projected to raise interest rates on Wednesday for the first time in almost a decade, have said low energy costs and a stronger dollar are transitory influences on inflation.

“Lower energy prices and strong-dollar pressure will continue to be disinflationary forces,” said Millan Mulraine, deputy head of U.S. research and strategy at TD Securities LLC in New York. “Inflation will take some time to get back to the Fed’s desired level but it’s moving in the right direction.”

The CPI matched the median forecast in a Bloomberg survey. Estimates ranged from a decline of 0.1 percent to a gain of 0.2 percent.

The gauge increased 0.5 percent in the 12 months ended in November, the most this year, after a 0.2 percent year-over-year advance the prior month. The figure is expected to pick up in coming months, reflecting easier comparisons with late last year and early in 2015, when oil prices were plunging.

The core CPI measure increased 2 percent from November last year, the most since May 2014, after rising 1.9 percent in the prior 12-month period.

Energy costs decreased 1.3 percent from a month earlier, the report showed.
Food prices fell 0.1 percent, driven by cheaper meat, chicken, eggs and fish. Apparel and used vehicles also declined last month.

Expenses for shelter climbed 0.2 percent from a month earlier. Owners-equivalent rent, one of the categories designed to track rental prices, also rose 0.2 percent.
Costs of medical care climbed 0.4 percent after a 0.8 percent advance.

Higher prices for shelter, including rents and hotel rates, are helping to prop up inflation even as oil has taken another plunge in recent weeks and the strong dollar is holding down commodity prices. Prices of all goods decreased 2.8 percent in November from a year earlier, while the costs of services advanced 2.5 percent.

Fed officials have said they expect inflation to approach their target as the drag from lower oil costs and the rising dollar diminishes. That may take longer as energy prices continue to fall and the dollar keeps rising.

The Fed’s preferred gauge of inflation, which is the Commerce Department’s personal consumption expenditures measure, hasn’t matched the central bank’s goal since April 2012.

Read more

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

COVID-19 Vaccine: Crude Oil Extends Gain to $48 Per Barrel on Wednesday

Published

on

oil 1

Oil prices rose further on Wednesday as hope for an effective COVID-19 vaccine and the news that the United States of America’s President-elect, Joe Biden has begun transition to the White House bolstered crude oil demand.

Brent crude oil, a Nigerian type of oil, gained 1.63 percent or 78 cents to $48.64 per barrel at 11:50 am Nigerian time on Wednesday.

The United States West Texas Intermediate (WTI) crude oil rose by 1.36 percent or 61 cents to $45.52 per barrel.

OPEC Basket surged the most in terms of gain, adding 3.16 percent or $1.37 to $44.75 per barrel.

This was after AstraZeneca, Moderna and Pfizer-BioNTech announced the positive results of their trials.

Moderna and Pfizer had claimed over 90 percent effective rate in trials while AstraZeneca said its COVID-19 vaccine was 70 percent effective in trials but could hit 90 percent going forward.

The possibility of having a vaccine next year increases the odds that we’re going to see demand return in the new year,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Also, the decision of President-elect Joe Biden to bring Janet Yellen, the former Chair of Federal Reserve, back as a Treasury Secretary of the United States is fueling demand and strong confidence across global financial markets.

President-elect Biden’s cabinet choices, particularly Janet Yellen’s Treasury Secretary position, are adding to upside momentum across a broad space of asset classes,” said Jim Ritterbusch of Ritterbusch and Associates.

Continue Reading

Economy

Seyi Makinde Proposes N266.6 Billion Budget for Oyo State in 2021

Published

on

The Executive Governor of Oyo State, Seyi Makinde, has presented the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly on Monday.

The proposed budget titled “Budget of Continued Consolidation” was said to be prepared with input from stakeholders in all seven geopolitical zones of Oyo state.

Governor Makinde disclosed this via his official Twitter handle @seyiamakinde.

According to the governor, the proposed recurrent expenditure stood at N136,262,990,009.41 while the proposed capital expenditure was N130,381,283,295.63. Bringing the total proposed budget to N266,6444,273,305.04.

The administration aimed to implement at least 70 percent of the proposed budget if approved.

He said “The total budgeted sum is ₦266,644,273,305.04. The Recurrent Expenditure is ₦136,262,990,009.41 while the Capital Expenditure is ₦130,381,283,295.63. We are again, aiming for at least 70% implementation of the budget.”

He added that “It was my honour to present the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly, today. This Budget of Continued Consolidation was prepared with input from stakeholders in all seven geopolitical zones of our state.”

Continue Reading

Economy

World Bank Expects Nigeria’s Per Capita Income to Dip to 40 Years Low in 2020

Published

on

world bank

The World Bank has raised concern about Nigeria’s rising debt service cost, saying it could incapacitate the nation from necessary infrastructure development and growth.

The multilateral financial institution said the nation’s per capita income could plunge to 40 years low in 2020.

According to Mr. Shubham Chaudhuri, Country Director for World Bank in Nigeria, the decline in global oil prices had impacted government finances, remittances from the diaspora and the balance of payments.

Chaudhuri, who spoke during the 26th Nigerian Economic Summit organised by the Nigerian Economic Summit Group and the Federal Government, said while the nation’s debt is between 20 to 30 percent, rising debt service remains the bane of its numerous financial issues and growth.

Nigeria’s problem is that the debt service takes a big part of the government revenue,” he said.

He said, “Crisis like this is often what it takes to bring a nation together to have that consensus within the political, business, government, military, civil society to say, ‘We have to do something that departs from business as usual.’

“And for Nigeria, this is a critical juncture. With the contraction in GDP that could happen this year, Nigeria’s per capita income could be around what it was in 1980 – four decades ago.”

Nigeria’s per capita income stood at $847.40 in 1980, according to data from the World Bank. It rose to $3,222.69 in 2014 before falling to $2,229.9 in 2019.

Continue Reading

Trending