TRADING ECONOMICS | 20 million INDICATORS FROM 196 COUNTRIES (original) (raw)

Eurozone Negotiated Wage Growth Highest since 1993Negotiated wage growth in the Euro Area surged to 5.42% in Q3 2024, the highest increase since Q1 1993, up from 3.54% in Q2. This jump, largely driven by Germany, complicates the European Central Bank’s plans for interest rate cuts as inflation eases. With less than a month before the ECB’s final policy meeting of the year, there are concerns that this wage surge could dampen expectations for aggressive rate reductions in 2025. While the ECB has signaled that further cuts are likely due to weak economic activity, some officials caution against rapid moves, given persistent wage pressures in the services sector. The ECB expects a slowdown in wage growth over the next two years, but high pay increases in Germany, where wages rose by 8.8% in Q3, may limit the scope for future rate cuts. 2 hours ago

South Africa Inflation Rate Slips to Over 4-Year LowSouth Africa’s annual inflation rate fell for the 5th straight month in October, hitting an over four-year low of 2.8%, down from 3.8% in the prior month. Figures came slightly below market forecasts of 3.1%. Falling fuel prices remain the primary factor behind the slowdown. Petrol and diesel prices declined by 5.3% between September and October, taking the annual rate for fuel to -19.1%. Additionally, prices moderated for some CPI items, including restaurants & hotels (5.9% vs 7.4% in September); food & non-alcoholic beverages (3.6% vs 4.7%), alcoholic beverages & tobacco (4.5% vs 4.7%) and health (4.8% vs 5.1%). The core inflation rate, which excludes volatile items such as food, non-alcoholic beverages, fuels, and energy, eased to 3.9% in October, the lowest since April 2022, down from 4.1% in each of the previous two months. On a monthly basis, consumer prices edged down by 0.1% in October, marking the first decrease in almost a year, following a 0.1% increase in September. 4 hours ago

German Producer Prices Fall at Softer PaceProducer prices in Germany declined by 1.1% year-on-year in October 2024, easing from a 1.4% fall in the previous month and aligning with market expectations. This marked the 16th consecutive period of producer deflation, driven by a sharp drop in energy prices (-5.6%), with costs falling for mineral oil products (-12.9%), light heating oil (-22.7%), fuels (-12.1%), natural gas (-10.1%), and electricity (-7.3%). Excluding energy, producer prices rose by 1.3%. The largest price increases were observed in capital goods (2.0%), led by higher costs for machinery (2.0%) and motor vehicles and parts (1.4%). Prices also rose for consumer goods (1.9%), durable goods (0.9%), and intermediate goods (0.4%). On a monthly basis, producer prices increased by 0.2%, rebounding from a 0.5% drop in September, in line with market forecasts. 5 hours ago

China Holds LPR Rates Steady as ExpectedThe People’s Bank of China (PBoC) retained its key lending rates at the November fixing, in line with market estimates. The one-year loan prime rate (LPR), the benchmark for most corporate and household loans, was maintained at 3.1%. Meanwhile, the five-year rate, a reference for property mortgages, was held at 3.6%. Both rates remain at record lows following rate reductions in October and July. The latest decision reflected the PBoC's ongoing assessment of existing stimulus measures. Since late September, Beijing has ramped up efforts to reverse an economic slowdown and achieve the 2024 growth target of around 5%, despite prolonged property sector weakness, low consumer and business confidence, and persistent deflation risks. The central bank is expected to launch more policy-easing measures in the coming months. In October, Governor Pan Gongsheng said the central bank might reduce the reserve requirement ratio by another 25 to 50bps by year-end, contingent on liquidity conditions. 11 hours ago