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15<\/em><\/strong>-08-2022<\/em><\/strong><\/p>\n George Lucas, Raiz Group CEO<\/em><\/strong><\/p>\n The big theme in financial markets last week was signs US inflationary pressures are starting to ease, with the latest US July CPI report showing inflation fell by more than expected. Producer Price Index (PPI) data released Thursday also pointed to easing price pressures.<\/p>\n <\/p>\n This has been cheered by investors. Most risky assets made further gains, and it has also changed sentiment about the economic outlook, which is turning more positive.<\/p>\n I think the sentiment turnaround is based on the argument that if price pressures are already moderating, then the likelihood diminishes that the US Federal Reserve has to slow the economy very sharply in order to bring inflation back under control.<\/p>\n This view is supported by the strong performance last week of the energy, financials and materials sectors in the US market, which are very sensitive to the economic cycle.<\/p>\n Amid the positivity, a word of caution is that September is never the best month for equities. So, let\u2019s wait until we get through next month before we start giving the all-clear on economic growth and improved investor sentiment.<\/p>\n <\/p>\n On the domestic front, the ABS announced that it will soon start releasing a monthly consumer price index (CPI) indicator to provide a faster guide to inflation in Australia.<\/p>\n In addition to the current quarterly releases, we will now have more information points for the market to digest about calls about the direction of interest rates.\u00a0 It also brings us in line with other major developed economies that produce monthly inflation data.<\/p>\n <\/p>\n Staying on the inflation theme, it appears China is not immune to rising prices.<\/p>\n Consumer price inflation in China rose to a 24-month high in July, with a big factor being prices of pork, a food staple in the Asian nation, which rose by 20.2% in the month from a year ago. Inflation in China is now nearing the government\u2019s target of 3%.<\/p>\n That\u2019s still very low by global standards, and the market thinks it will probably not go much higher than 3%. However, remember that is also what the US Fed said when inflation began to rise in the US and now it is significantly higher there.<\/p>\n Meanwhile, in Malaysia, data published last week showed that GDP growth in the Southeast Asian country edged down in quarter-on-quarter terms last quarter to 3.5%, from 3.9%.<\/p>\n Otherwise, with the northern hemisphere on summer holidays it was a rather quiet week on the news front, with few market moving developments to report.<\/p>\n <\/p>\n <\/p>\n Download it for free in the App store or the Webapp below:<\/p>\n <\/figure>\n Important Information<\/em><\/strong><\/p>\n If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person\u2019s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.<\/em><\/p>\n You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.<\/em><\/p>\n We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing \u2013 sorry but true. 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Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can\u2019t promise that the information is accurate, or stays accurate.<\/em><\/p>\n Any opinions or information expressed are subject to change without notice; that\u2019s just the way we roll.<\/em><\/p>\n Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.<\/em><\/p>\n Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" 15-08-2022 George Lucas, Raiz Group CEO The big theme in financial markets last week was signs US inflationary pressures are starting to ease, with the latest US July CPI report showing inflation fell by more than expected. Producer Price Index (PPI) data released Thursday also pointed to easing price pressures.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[]}Australia to publish monthly CPI data<\/h3>\n
China consumer prices surge to 2-year high<\/h3>\n
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