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An inflation measure closely watched by the Federal Reserve ticked higher in July as steep prices continue to squeeze millions of US households. 

The personal consumption expenditures (PCE) index showed that consumer prices rose 0.2% from the previous month, according to the Commerce Department.

On an annual basis, prices climbed 3.3% — up from 3% the previous month, underscoring the challenge oftaming high inflation.

The figures were both in line with estimates from Refintiv economists.

Core prices, which strip out the more volatile measurements of food and energy, climbed 0.2% from the previous month and 4.2% from the previous year.

While the Fed is targeting the PCE headline figure as it tries to wrestle consumer prices back to 2%,Chair Jerome Powellpreviously told reporters that core data is actually a better indicator of inflation.

Both the core and headline numbers point to inflation that is still running above the Fed’s preferred 2% target.

“The PCE index has been moving in the right direction overall, but core inflation remains stickier than expected keeping the data dependent and agile Fed more likely to raise rates again this year,” said Quincy Krosby, chief global strategist for LPL Financial.

Other figures included in the report showed that consumer spending jumped 0.8% in July, compared with a 0.6% increase in June.

Still, many economists anticipate that spending will slow in coming months as spenders continue to grapple with expensive goods, high interest rates and the resumption of federal student loan payments.

“Consumers spent freely in July even if it meant dipping into their savings amid slower income growth,” said Gregory Daco, EY chief economist. “We anticipate the trend will slow in August and September as elevated prices for goods and services, higher borrowing costs and moderating income limit consumers spending appetite.”

Stocks climbed Thursday morning as the report fueled investor hopes for a rate pause. 

The Fed in July approved another interest rate hike, lifting the benchmark rate to the highest level since 2001. 

Powell signaled last week that additional rate hikes may be on the table this year as policymakers assess whether high inflation has retreated for good. 

“Although inflation has moved down from its peak a welcome development it remains too high,” he said. “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”

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UK

‘Major incident’ declared in Northern Ireland as wildfire breaks out amid higher-than-normal temperatures

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'Major incident' declared in Northern Ireland as wildfire breaks out amid higher-than-normal temperatures

A major incident has been declared in Northern Ireland after a wildfire broke out, the latest in a series of blazes seen across the UK over the past week amid soaring temperatures.

More than 100 firefighters and 14 fire appliances were at the scene of the “significant” wildfire on Sandbank Road, Hilltown, Northern Ireland Fire and Rescue Service said.

The fire had a front of approximately two miles “including a large area of forestry close to property”, the service said.

A wildfire broke out in Northern Ireland. Pic: Sky Watch NI
Image:
The wildfire on Sandbank Road, Hilltown. Pic: Sky Watch NI

“Local residents are requested to avoid the area, a number of roads have been closed, to help support firefighting operations,” the fire service added.

“We ask that all members of the public remain particularly vigilant to the risk of fire at this time. We can reassure members of the public that normal service delivery is being maintained.”

A wildfire broke out in Northern Ireland. Pic: Sky Watch NI
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More than 100 firefighters were at the scene of the fire. Pic: Sky Watch NI

Various fires erupted across England this week amid uncharacteristically warm and dry conditions for the time of year.

On Saturday, helicopters were deployed to tackle Scotland’s fourth wildfire this week, with police saying a blaze “which started in the Newton Stewart area has spread northwards and is expected to reach the Loch Doon area of East Ayrshire around 12am on Sunday”.

More on Northern Ireland

Police Scotland added: “As a precautionary measure members of the public are asked to avoid the Loch Doon area and anyone who may be camping in the area is advised to leave.”

Dorset wildfires
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Moors Valley Country Park blackened by fires this week

Elsewhere in England, Devon and Cornwall Police said they were assisting the fire service with temporary road closures on the A30 in the Bolventor area as they tackle “a number of fires” on moorland.

In Dorset, Moors Valley Country Park was forced to close after multiple wildfires broke out there on Wednesday.

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Wildfires spread across nature reserve

Separate incidents were then reported at Upton Heath in Poole on Wednesday, and nearby Canford Heath in the early hours of Thursday.

Friday was officially the warmest day of the year so far – with temperatures in the south of England reaching 23C (73.4F) – the highest since 21 September last year, according to the Met Office.

The weather conditions triggered a “severe” wildfire rating for parts of the UK on Tuesday.

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Politics

Billionaire investor would ‘not be surprised’ if Trump postpones tariffs

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<div>Billionaire investor would 'not be surprised' if Trump postpones tariffs</div>

<div>Billionaire investor would 'not be surprised' if Trump postpones tariffs</div>

Crypto-friendly billionaire investor Bill Ackman is considering the possibility that US President Donald Trump may pause the implementation of his controversial proposed tariffs on April 7.

“One would have to imagine that President Donald Trump’s phone has been ringing off the hook. The practical reality is that there is insufficient time for him to make deals before the tariffs are scheduled to take effect,” Ackman, founder of Pershing Square Capital Management, said in an April 5 X post.

Trump may postpone tariffs to make more deals, says Ackman

“I would, therefore, not be surprised to wake up Monday with an announcement from the President that he was postponing the implementation of the tariffs to give him time to make deals,” Ackman added.

On April 2, Trump signed an executive order establishing a 10% baseline tariff on all imports from all countries, which took effect on April 5. Harsher reciprocal tariffs on trading partners with which the US has the largest trade deficits are scheduled to kick in on April 9.

Ackman — who famously said “crypto is here to stay” after the FTX collapse in November 2022 — said Trump captured the attention of the world and US trading partners, backing the tariffs as necessary after what he called an “unfair tariff regime” that hurt US workers and economy “over many decades.” 

Following Trump’s announcement on April 2, the US stock market shed more value during the April 4 trading session than the entire crypto market is currently worth. The fact that crypto held up better than the US stock market caught the attention of both crypto industry supporters and skeptics.

United States, Donald Trump

Source: Cameron Winklevoss

Prominent crypto voices such as BitMEX co-founder Arthur Hayes and Gemini co-founder Cameron Winklevoss also recently showed their support for Trump’s tariffs.

Related: Trump tariffs squeeze already struggling Bitcoin miners — Braiins exec

Ackman said a pause would be a logical move by Trump — not just to allow time for closing potential deals but also to give companies of all sizes “time to prepare for changes.” He added:

“The risk of not doing so is that the massive increase in uncertainty drives the economy into a recession, potentially a severe one.”

Ackman said April 7 will be “one of the more interesting days” in US economic history.

Magazine: New ‘MemeStrategy’ Bitcoin firm by 9GAG, jailed CEO’s $3.5M bonus: Asia Express

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Environment

Delhi-ghtful! India mulls 2035 ICE ban, blocks fuel sales to older vehicles

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Delhi-ghtful! India mulls 2035 ICE ban, blocks fuel sales to older vehicles

In a bold bid to combat the crippling air pollution crisis in its capital, Delhi, Indian lawmakers have begun high-level discussions about a plan to phase out gas and diesel combustion vehicles by 2035 – a move that could cause a seismic shift in the global EV space and provide a cleaner, greener future for India’s capital.

Long considered one of the world’s most polluted capital cities, Indian capital Delhi is taking drastic steps to cut back pollution with a gas and diesel engine ban coming soon – but they want results faster than that. As such, Delhi is starting with a city-wide ban on refueling vehicles more than 15 years old, and it went into effect earlier this week. (!)

“We are installing gadgets at petrol pumps which will identify vehicles older than 15 years, and no fuel will be provided to them,” said Delhi Environment Minister Manjinder Singh Sirsa … but they’re not stopping there. “Additionally, we will intensify scrutiny of heavy vehicles entering Delhi to ensure they meet prescribed environmental standards before being allowed entry.”

Making it prohibitively difficult for Dehli’s residents to own and operate older, presumably more polluting vehicles is one way to reduce harmful emissions and air pollution, but Sirsa’s team isn’t just targeting newer vehicles. They’re also planning to deploy more than 900 electric transit buses, part of a larger plan to replace 5,000 of the city’s 7,500 total bus with lower- or zero-emission options this year alone.

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The Economic Times is reporting that discussions are underway to pass laws requiring that all future bus purchases will be required to be electric or “clean fuel” (read: CNG or hydrogen) by the end of this year, with a gas/diesel ban on “three-wheelers and light goods vehicles,” (commercial tuk-tuks and delivery mopeds) potentially coming 2026 to 2027 and a similar ban privately owned and operated cars and bikes coming “between 2030 and 2035.”

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Xpeng EV with Turing AI and Bulletproof battery; via XPeng.

After a Chinese government study linked air pollution caused by automotive exhausts and coal-fired power plants to more than 1.1 million deaths per year in 2013, the nation’s government took serious action, shuttering older coal plants and imposing strict emissions standards. The country also incentivized EV adoption through license-plate lotteries favoring electric cars and a nationwide EV mandate set to kick in by 2030.

The results were astounding, and the technological innovations that have come from an entire nation of talented engineers all “pulling in the same direction” have put the West to shame, with Western auto executives repeatedly sounding the alarm and lobbying for tariffs and other protectionist policies on both sides of the Atlantic.

To see India make move towards a gas and diesel ban like this, and on such an aggressive timeline, can only mean that they’ve been paying attention … and America is about to fall even further behind.

SOURCE: India Times; featured image by Sumita Roy Dutta.

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