Weekly newsletter November 14 to November 18
November 14, 2022
November 15, 2022
Wholesale Inflation Comes in Below Forecast in October, Posts 0.2% Rise Wholesale inflation rose 0.2% in October, below expectations, in a further sign that price increases across the economy are beginning to abate, the Bureau of Labor Statistics reported on Tuesday. For the month, prices fell 0.2%, compared to estimates of 0.4%, putting the annual rate of increase at 8%, down from 8.4% in September.
Photo: US News
Biden Urges Cooperation in First In-Person Meeting with China’s Xi Jinping President Joe Biden on Monday both urged partnership and raised objections with China during the first in-person meeting of his presidency with Chinese President Xi Jinping – another instance of him reiterating America’s commitment to global cooperation after strong midterm election results for his party.
Excluding volatile food and energy costs, wholesale prices rose 0.2%, compared to the 0.3% increase a month earlier. For the year, core wholesale inflation rose 5.4%. The report follows last week’s news that consumer prices rose a better-than-expected 7.7% last month. The report sparked a massive rally in stocks. Inflation expectations for the coming year rose to 5.9%, up half a point from September and at the highest level since July. The three-year expectations also increased to 3.1% from 2.9% previously. Ahead of the wholesale inflation report, retail bellwether Walmart beat expectations for its third-quarter earnings.
The president told Xi during a three-hour summit in Bali, Indonesia, that while the two countries will keep competing “vigorously,” it is important that they work together to address global issues such as climate change and economic stability “because that is what the international community expects,” according to a White House readout of the meeting. Xi himself seemed to agree. Richard Haass, the president of the Council on Foreign Relations, said in a tweet that a “principal result” of the two rival leaders’ meeting “seems to have been to introduce a much-needed element of diplomacy (above all, by committing to follow-up talks by senior staff on a range of issues) into a relationship that has sharply deteriorated in recent years.” Source: https://www.usnews.com/news/national-news/articles/2022-11-14/biden-urges-cooperation-in-firstin-person-meeting-with-chinas-xi-jinping
Photo: US News Source: https://www.usnews.com/news/economy/articles/2022-11-15/wholesale-inflationcomes-in-below-forecast-in-october-posts-0-2-rise
November 16, 2022
November 17, 2022
USDA Program Keeps Extra COVID-Era Money for Fruits, Veggies U.S. agriculture officials proposed changes Thursday to the federal program that helps pay the grocery bills for low-income pregnant women, babies, and young children, including extending a bump in payments for fresh fruits and vegetables allowed during the COVID-19 pandemic. The update also adds more whole grains, canned fish, and non-dairy options to their shopping carts. The effort is aimed at expanding the number and type of healthy foods available to families who get assistance from the Agriculture Department's program known as WIC, officials said.
Photo: CNN News
UK inflation jumps to 41-year high of 11.1% Soaring energy costs drove UK inflation to a fresh high in October, the latest piece of bad news for an economy sliding into recession. The annual rate of inflation rose to 11.1% in October, up from 10.1% in the 12 months to September, the Office for National Statistics said on Wednesday.
“These proposals will promote healthier lifestyles and brighter futures for millions of children,” said Stacy Dean, deputy undersecretary for food, nutrition, and consumer services. The revisions would make permanent payments authorized by Congress during the COVID-19 pandemic that increased vouchers for fruits and vegetables to $25 a month for children ages 1 to 5 and to $49 a month for breastfeeding women. More canned fish, such as tuna, would be available as well as easy-to-prepare canned beans, in addition to dried beans, officials said. The plan would also change the amount of infant formula provided to partially breastfed babies.
The sharp increase in living costs was caused by rising gas and electricity prices, despite a government energy price guarantee, which caps energy bills at £2,500 ($2,970) for the typical household. Food price inflation rose to 16.4%. “Over the past year, gas prices have climbed nearly 130% while electricity has risen by around 66%,” ONS chief economist Grant Fitzner said in a statement. Rising prices in Britain contrast with cooling inflation in the United States. The US Consumer Price Index rose 7.7% for the year ending in October, a slower pace of increase than the 8% economists had expected and the lowest annual inflation reading since January. Investors are hoping that easing price pressures could moderate the pace and scale of interest rate hikes by the Federal Reserve, a view that has boosted US stocks in recent days. Source: https://edition.cnn.com/2022/11/16/economy/uk-inflation-october/index.html
Photo: US News Source: https://www.usnews.com/news/health-news/articles/2022-11-17/usda-programkeeps-extra-covid-era-money-for-fruits-veggies
November 17, 2022
Photo: CNN News
Stocks have been clobbered this year, but people are still contributing to their retirement accounts Stocks and bonds have been turning in volatile, bearish performances this year in an economy marked by high inflation and rising interest rates. But that hasn’t deterred most retirement savers, especially the youngest ones. 401(k) participants have held relatively steady in their savings contribution rates and in their portfolio allocations, according to new third quarter data from Fidelity Investments. And GenZers have increased their contributions. By the end of the third quarter, the S&P 500 was down 25% for the year. The Nasdaq had fallen 33%. And the S&P US aggregate bond index was off about 13%. So, it’s not surprising that the average 401(k) account balance fell to $97,200 in the third quarter, according to Fidelity, one of the country’s leading providers of workplace retirement plans. That’s down 6% from the second quarter and 23% from a year earlier. Meanwhile GenZers in the workplace – those roughly ages 22 to 25 – increased their savings levels from 10% to 10.3%. That may account for why the youngest generation of today’s employees saw their account balances increase 1.2% relative to the second quarter, despite terrible market performance. In terms of gender differences, men saved a bit more than women (14.5% versus 13.5%). And age wise, Boomers on the cusp of retirement saved the most (16.5%). Source: https://edition.cnn.com/2022/11/17/success/401k-savings-fidelity/index.html