Inflation, interest rates: CPI rises to 6.8 percent in August

The rising cost of fruits and vegetables has helped inflation in Australia remain at its highest level in 30 years, new data shows. The Australian Bureau of Statistics’ new monthly inflation measure showed that the pace of price increases reached 7.0 percent in July and slowed slightly in August to 6.8 percent. Rising construction costs … Read more

Gasoline prices: End of fuel tax will increase costs, retail spending will fall

In recent months, Australians have experienced much-needed relief from high petrol prices, with the average cost of regular unleaded lead falling by as much as 48 cents per liter since its recent peak in mid-June. But there’s another positive knock-on effect caused by Australians having more money in their pockets each month after paying lower … Read more

Opinion: The Federal Reserve is missing a crucial turning point in its fight against inflation because it believes in flawed data

The Federal Reserve can’t see the likely economic crash ahead because it’s still looking in the rearview mirror, seeing nothing but high inflation. The danger arises because the consumer price index and the price index for personal consumption – the two main measures of inflation – have a fatal flaw in the way they measure … Read more

Consumers are becoming more optimistic about the US economy

CNN — Consumer confidence rose for the second month in a row in September, as moderating gas prices and hoping that inflationary pressures could ease helped improve the collective mood of the nation. The Conference Board reported Tuesday that the baseline index rose to 108 from a revised 103.6 in August, the highest since April. … Read more

Fed’s Evans nervous about going too far and too fast with rate hikes

Charles Evans, president of the Federal Reserve of Chicago, says he is concerned that the US central bank is raising interest rates too quickly in its efforts to tackle runaway inflation. Speaking to CNBC’s “Squawk Box Europe” on Tuesday, Evans said he remains “cautiously optimistic” that the US economy can avoid a recession – provided … Read more

Elon Musk says it’s ‘clearly correct’ that the Fed is fueling the US economy

Billionaire Elon Musk backed a prominent Wharton economist who accused the Federal Reserve and its chairman Jerome Powell of completely screwing up their response to the current economic slump. Musk responded to a fiery rant from Wharton professor Jeremy Siegel, who told CNBC’s “Halftime Report” Friday that the Fed’s current policy path is “way too … Read more

The ‘real cure’ for inflation has been ignored, says Steve Forbes

The British pound plunged to a record low in Asia on Monday morning, following last week’s announcement by the new British government that it would implement tax cuts and investment incentives to boost growth. By focusing on raising interest rates to cool inflation, central banks and governments have overlooked the importance of maintaining stable currencies, … Read more

Single mother Tessa does ‘side business’ to avoid rising interest rates

Tessa beams with pride when she explains that everything in her house is a throw-away or a find on Facebook Marketplace. She’s even more boastful about her sartorial steals – all of her clothes come from local op-shops. To top it off, she says all of her food for the week is cooked from scratch … Read more

The US Federal Reserve is tightening monetary policy and this is likely to affect Australian households

Mortgage borrowers and renters may be plagued with higher monthly payments than even the most pessimistic forecasts currently suggest, and the Reserve Bank won’t be blamed. Instead, it is the US Federal Reserve that can absorb the wrath of Australian households. The reason is simple. The more the US Federal Reserve tightens its monetary policy, … Read more

Shares fall and prices rise. It’s painful, but we’re getting back to normal.

Stocks and bonds are falling. Housing is weakened. And I haven’t heard anything about non-replaceable cartoon pentons in three months. Strategists are now turning to really bizarre assets – two I spoke to last week advised buying long-term government bonds. One also said that he preferred stocks of companies that generate money, and he was … Read more