US markets boosted as inflation fears subside
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Signs that US inflation remains tame boosted the US financial markets yesterday by removing any residual fear that the Federal Reserve might raise interest rates at its last Open Markets Committee meeting of the year. Consumer prices rose just 0.1 per cent in November, trimming the annual inflation rate to 1.8 per cent. "Core" prices, excluding volatile food and energy components, also rose 0.1 per cent during the month. A 0.7 per cent drop in transport prices thanks to lower air fares explained the smaller-than-expected increase.
Wall Street economists expressed relief that early signs of pressure on wages had not fed through to prices yet, although some remain convinced the Fed will have to raise rates during the first few months of 1998 as inflationary pressure build in the jobs market. Separate figures showed new housebuilding starts up unexpectedly last month. The number of new homes started climbed 0.8 per cent, reaching an annual rate of 1.53 million units. Low long-term interest rates are boosting the housing market.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments