Charting the global economy: Inflation eases in US and Europe
Europe, setting the stage for policymakers in both regions to lower interest rates in September.
On a three-month annualized basis, the Federal Reserve’s preferred measure of underlying US inflation advanced 1.7% in July, the slowest this year. In Europe, consumer prices rose 2.2% in August from a year ago — the tamest since mid-2021 and significantly lower than the 2.6% pace a month earlier.
Meantime, inflation in Tokyo — a leading indicator of the national data due in September — picked up speed in August, supporting the case for the Bank of Japan to continue raising rates at a gradual pace as the bank balances the need to support the economy.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:
US
The Fed’s preferred measure of underlying US inflation rose at a mild pace and household spending picked up in July, reinforcing policymakers’ plan to start cutting interest rates next month. However, more sluggish income growth and a decline in the saving rate may raise questions about the durability of consumer spending going forward.
From LA to Chicago and Boston, aging business districts are contending with empty offices and a slow return of workers, while neighborhoods just miles or even blocks away are faring better — or even thriving. Such disparities are unfolding across the US, exposing deep divides in the commercial real estate market and the recovery of cities after the pandemic.
Americans are seeking to change their
