It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
Economic growth slowed to 1.6% in the first quarter of 2024, below expectations. Meanwhile, inflation jumped to 3.4%, its highest rate in a year. Consumer spending also slowed, indicating consumers are starting to feel the pinch of rising prices. The report suggests the economy is facing challenges, with slower growth and higher inflation.
The UK economy grew slightly in February, ending a technical recession. While the GDP is still below its pre-pandemic levels, it shows signs of recovery, with construction output falling but production and services sectors growing. However, inflation remains high, and forecasts for interest rate cuts have been revised due to unexpected price increases in the US. The Bank of England is expected to cut rates four times this year, starting in June.
The Federal Reserve is meeting this week to discuss interest rates. They are expected to maintain the current range and project three rate cuts later this year. The meeting will focus on the "dot plot," which shows individual members' interest rate expectations, and could indicate a shift in the outlook on cuts. The Fed will also release economic projections for GDP, inflation, and unemployment, likely reflecting a revised inflation outlook and a slightly upgraded GDP forecast.
The UK economy grew a modest 0.2% in January, driven by construction and services. However, it remains in a shallow recession, with overall output falling by 0.3% compared to a year ago. While these figures are slightly better than expected, economists caution that it's too early to say if the recovery is sustainable.
Taylor Swift's Eras Tour had a positive economic impact in the U.S., boosting retail sales and GDP slightly. The tour's effect was significant in cities where it performed, driving up lodging prices, occupancy rates, and hotel revenues. While the tour's macro impact on national-level data was minimal, local economic benefits were substantial. However, the tour's impact may be more significant in smaller economies like Sweden and Singapore.
Inflation in the European Union declined slightly in February to 2.6%, but remains higher than anticipated, with core inflation also above expectations. The European Central Bank faces challenges in balancing inflation control with economic growth concerns, as core inflation persists above 3%. Wage negotiations in the spring and price increases driven by the Russian invasion of Ukraine will influence the ECB's decision on adjusting interest rates.
