Slowing Turkish inflation has helped make the country’s lira-denominated government bonds “cheap” for the first time this year, Deutsche Bank’s analysts said, adding that their models pointed to potentially stellar gains ahead. Data on Friday showed Turkey’s headline inflation rate
European Central Bank President Mario Draghi said the bank’s all-important inflation target should not be viewed as a 2% cap, in a significant move accompanied on Thursday by further explicit hints of easing down the road.
Japan’s core consumer inflation slowed in May and factory activity shrank in June, underlining the growing stress on the economy and keeping the central bank under pressure to expand its radical stimulus programme, possibly as early as next month.
China’s factory-gate inflation in April quickened at its fastest pace in four months, buoyed by higher commodity prices and as a sign demand to perk up, when Beijing rolls out more stimulus. Consumer inflation also accelerated, jumping to the highest pace in six months, official data showed on Thursday.
US underlying consumer prices increased solidly in August, leading to the largest annual gain in a year, but rising inflation is unlikely to deter the Federal Reserve from cutting interest rates again next week to support a slowing economy.
South Korea’s consumer inflation faltered to its slowest on record in August while second quarter economic growth was revised down on weaker exports, firming up the case for central bank rate cuts as early as next month.
Government’s efforts to reverse the slowdown on the back of a sluggish GDP growth is expected to induce volatility in the Indian equity markets during the coming week.
Pakistan’s former finance minister Asad Umar said that the federal government would conduct separate surveys for urban and rural areas to measure the inflation rate.
Mexico’s central bank (CB) has hinted that further monetary policy easing could be on the way. The bank cut its key lending rate on Thursday for the first time since June 2014, citing slowing inflation and increasing slack in the economy.