Dollar Firms As US Inflation Accelerates, Loonie Tumbles On Disappointing Growth Data
The Federal Reserve’s preferred inflation measure accelerated as expected in July, making it more difficult to justify an aggressive course of rate cuts beyond September’s widely-anticipated move. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising 0.3 percent from the prior month, matching market forecasts as a number of key goods and services categories showed signs of firming price pressures. On a year-over-year basis, core price growth accelerated to 2.9 percent—the fastest since February—underlining an intensification in inflation pressures across the world’s largest economy. The overall personal consumption expenditures index climbed...