Economic and Political Headline
• Food inflation eased, but fuel inflation accelerated in late June and a recent hike in fuel prices kept the case for the central bank to top up its last Friday's rate hike when it reviews policy on July 27. Data released showed the food price index rose an annual 12.63% in the year to June 26, slower than the previous week's 12.92%, largely as prices in the year-ago period were high. The fuel price index went up by 18.02% during the period, compared with the previous week's 12.90%. The primary articles index rose by 16.08%, compared with 14.75% in the previous week. (BS)
• The number of Americans applying for jobless benefits last week fell to 454,000, a level that indicates improvement in the labor market is taking time to develop. Initial jobless claims decreased by 21,000 in the week ended July 3, Labor Department figures showed. (Bloomberg)
• Consumer borrowing in the US dropped in May more than forecast, a sign Americans are less willing to take on debt without an improvement in the labor market. The USD 9.1 bn decrease followed a revised USD 14.9 bn slump in April, the Federal Reserve reported. (Bloomberg)
• Food inflation eased, but fuel inflation accelerated in late June and a recent hike in fuel prices kept the case for the central bank to top up its last Friday's rate hike when it reviews policy on July 27. Data released showed the food price index rose an annual 12.63% in the year to June 26, slower than the previous week's 12.92%, largely as prices in the year-ago period were high. The fuel price index went up by 18.02% during the period, compared with the previous week's 12.90%. The primary articles index rose by 16.08%, compared with 14.75% in the previous week. (BS)
• The number of Americans applying for jobless benefits last week fell to 454,000, a level that indicates improvement in the labor market is taking time to develop. Initial jobless claims decreased by 21,000 in the week ended July 3, Labor Department figures showed. (Bloomberg)
• Consumer borrowing in the US dropped in May more than forecast, a sign Americans are less willing to take on debt without an improvement in the labor market. The USD 9.1 bn decrease followed a revised USD 14.9 bn slump in April, the Federal Reserve reported. (Bloomberg)