Latest news with #consumerPrices
Reuters
10-07-2025
- Business
- Reuters
Japan's wholesale inflation slows, relieves interest rate-hike pressure
TOKYO, July 10 (Reuters) - Japan's annual wholesale inflation slowed in June for the third successive month, data from the Bank of Japan showed on Thursday, backing up the central bank's view that price pressure from rising raw material costs will gradually dissipate. While food prices continued to rise steadily, some analysts said they expect inflationary pressure to moderate in coming months as pain from U.S. tariffs on Japan's economy intensifies. "As wholesale inflation slows, consumer inflation will likely face stronger downward pressure with some lag," said Masato Koike, senior economist at Sompo Institute Plus. "Japan's trade talks with the U.S. seem deadlocked, so it will likely take time for uncertainty to fade. By then, consumer inflation will slow and make it hard for the Bank of Japan to raise interest rates," Koike said. The corporate goods price index, which measures the price companies charge each other for their goods and services, rose 2.9% in June from the same month a year earlier, the data showed, matching a median market forecast. The index, a leading indicator of consumer inflation, slowed from a revised 3.3% in May due partly to falling prices of fuel and metal products, the data showed. The yen-based import price index dropped 12.3% in June from a year earlier, after a 10.3% decline in May, indicating the currency's rebound pushed down raw material import costs. Food and beverage prices rose 4.5% in June on stubbornly high cost of rice, though it slowed from a 4.7% increase in May, the data showed. The BOJ ended a decade-long stimulus programme last year and in January raised its policy interest rate to 0.5% on the view that inflation was on the cusp of durably meeting its 2% target. While the BOJ expects food inflation to moderate this year, it has signalled readiness to raise the interest rate again once the economy resumes a recovery on solid wage gain. The core consumer inflation rate hit a more than two-year high of 3.7% in May, remaining above the BOJ's 2% target for well over three years, due largely to a surge in food costs. The interest rate-hike outlook, however, is clouded by uncertainty over U.S. trade policy following President Donald Trump's latest threat to raise tariffs on Japanese goods to 25% from 10% unless a trade deal is signed by a newly set deadline of August 1.
Daily Mail
08-07-2025
- Business
- Daily Mail
US dollar in danger after worst half-year since the 1970s... here's how it'll shrink your wallet
America's currency just had its worst half-year performance since the Nixon era. That could mean higher prices for everyday Americans. The dollar dropped more than 10 percent against major global currencies from January to June, according to the US Dollar Index. It's the worst first-half showing since the index began tracking the greenback in 1973. For decades, the dollar has served as the world's financial safe haven. Economists warn the weaker dollar could keep inflation stubbornly high, even as consumer prices cool in other areas of the economy. 'A depreciation in the US dollar is inflationary,' Ryan Sweet, the chief US economist for Oxford Economics, told Newsweek. 'The depreciation in the dollar increases the risks that tariffs boost consumer prices more than anticipated this summer and into the fall.' Take, for example, the cost of car parts from best-selling Japanese brands like Toyota, Honda, and Nissan. When the dollar weakens against the Japanese Yen, it takes more dollars to buy the same part from an overseas supplier. That can push up Americans' repair bills, parts prices, and insurance. It also increases manufacturing costs in the US, where many factories depend on globally sourced components. Similar price pressures are showing up in other industries that rely on imports — like food, electronics, and clothing. Coffee from Colombia, apparel from Vietnam, and even roses from Ecuador — all products that have nearly no US manufacturing — can become more expensive and trickle down to consumers at the checkout line. Bret Kenwell, US investment analyst at eToro, told there is a mix of good and bad with the dollar's dip. 'A falling dollar can be a good thing for large multinational companies, as it boosts their earnings in non-dollar currencies,' he said. 'However, importers can struggle as it now takes more dollars to buy the same goods as before. For these reasons, many companies look to hedge their currency exposure — especially in volatile environments.' While a weaker dollar may help exporters compete abroad, it's also reshaping how everyday investors move the money in their portfolios. A new survey from trading platform eToro found that 58 percent of American retail investors are adjusting their portfolios in response to the dollar's decline. More than a quarter are pulling back from US stocks and shifting into gold and cryptocurrency — two assets often viewed as hedges against inflation and currency risk. Younger investors were especially bullish on gold, the survey found. Trust in the US market is also starting to slip from all-time highs. The dollar has traditionally been seen as safe haven currency for international investors. But rising national debt, increased inflation, higher interest rates, a wobbly political landscape, and a focus on US manufacturing has chipped away at its long-term dominance. Some creditors are even worried the US might not be able to service some of its debts. But top White House advisors say the dollar's long-term strength has come with tradeoffs for US jobs. Vice President JD Vance has frequently said that dollar dominance has had the reverse impact on countries that want to buy goods built in the US. A Ford F-150 built in Michigan, for instance, costs significantly more for a customer in Japan than for one in the States. 'If you want to employ a lot of people in manufacturing, you need to make it easier for us to export and not just import what we need,' Vance told Politico.
Free Malaysia Today
03-07-2025
- Business
- Free Malaysia Today
In US capital, Trump tariffs bite into restaurant profits
Higher import costs have eaten into margins and fed into consumer prices in the three months since US President Donald Trump unveiled global tariffs. (AFp pic) WASHINGTON : Brazilian coffee beans, French champagne and Chinese teas – drinks are a profit driver for US restaurants, but higher import costs have eaten into margins and fed into consumer prices in the three months since President Donald Trump unveiled sweeping global tariffs. A stone's throw from the White House, a restaurant group that takes pride in dishing up fresh local meat and produce has found itself having to raise prices on its menus. 'The reality is, we have to pass along some of those to our guests,' said John Filkins, corporate beverage director at Clyde's Restaurant Group. 'Could be anywhere from 50 cents to US$1 on certain wines by the glass, or spirits, or some of our food menu items,' he told AFP. 'We've seen huge increases in coffee and teas, and we're beginning to see some of those increases in food, as well as paper products coming on through as well,' he added. Clyde's, which opened in the 1960s in Washington, has more than a dozen restaurants in and around the US capital. One of them is The Hamilton in downtown Washington, where drinks prices have ticked up. While management has tried to limit increases, Filkins said this has been tough. Businesses have encountered snarled supply chains and higher costs since Trump imposed fresh tariffs after returning to the presidency in January. In April, the president unleashed his widest-ranging salvo, a 10% duty on imports from most trading partners. This is expected to surge to higher levels for dozens of economies. 'Low cash, low margin' Leaders like Filkins are eyeing a deadline next Wednesday when the steeper tariffs are due to kick in. These are customised to each partner, with the level for EU products rising to 20% and that for Japanese goods jumping to 24% unless they strike deals to avert or lower the rates. Filkins warned that the longer tariffs remain in place, the fewer small, independent distributors, importers and restaurants there might be. 'The hope is we don't see tariffs to the extent where we're seeing them any longer,' he added. 'Restaurants are, at the end of the day, typically low cash, low margin,' Filkins said. A typical outfit probably runs 'in the single digits in terms of profit margin,' he noted. This means that cutting out 10% to 15% of their profit for wine by the glass, for example, could prove a significant blow. 20%-30% hikes Clyde's sources coffee beans from places like Brazil and Indonesia for its blends, while getting teas from India and China. 'Over the course of the last probably six months, we've seen about a 20% to 30% increase of that cost,' Filkins said. This is partly because suppliers and distributors are not only paying the 10% tariff but forking out more due to exchange rates. Imports from China face a 30% tariff currently even though Washington and Beijing have temporarily lowered tit-for-tat levies on each other's goods. Without a deal, products from Indonesia face a 32% duty come Wednesday, and the rate for India spikes to 26%. 'For liquor, beer and wine, most of the wine we import comes from the EU,' Filkins said, noting the impact is biggest on products from France, Italy, Spain and Portugal so far. Yet, his company is trying to hold off passing on additional costs entirely. 'Consumers are not comfortable spending more in the current climate,' said Filkins. The world's biggest economy has fared well after the Covid-19 pandemic, helped by a solid labour market that allowed consumers to keep spending. However, economic growth has slowed alongside hiring. Economists are monitoring to see if tariffs feed more broadly into inflation this summer, and households become more selective with purchases. With Trump's approach of announcing, adjusting and halting tariffs roiling financial markets and fueling uncertainty – forcing businesses to put investments on hold – Filkins hopes for an easing of levies. 'It's hard for all of us to forecast what's going to happen in the next eight days. 'We can't base all of our decisions on speculation,' said Filkins.
Bloomberg
03-07-2025
- Business
- Bloomberg
Turkish Inflation Slows to 35.1% in June, Extending Downtrend
Turkey's annual inflation slowed faster than expected in June, reinforcing the prospect of an impending resumption of interest-rate cuts. Consumer prices rose 35.1 % last month in annual terms, compared to 35.4% in May, data from state statistics office TurkStat showed Thursday. Economists had expected inflation to ease marginally to 35.3%, according to the median forecast in a Bloomberg survey.
Wall Street Journal
03-07-2025
- Business
- Wall Street Journal
Swiss Inflation Rebounds But Stays Close to Deflationary Levels
Swiss annual inflation picked up in June, but stayed near deflationary levels, highlighting the possibility that the Swiss National Bank might push rates below zero later this year. Consumer prices were 0.1% higher than the same month of last year, compared with annual inflation of minus 0.1% in May, Switzerland's statistics office said Thursday.
