All articles tagged with #energy prices
Singapore’s headline inflation rose 2.2% year-on-year in July (below economists’ 2.3% forecast), with core inflation at 2%; higher electricity and imported prices reflect elevated energy costs after MAS’s July policy tightening, while the government announced about SGD 2 billion in relief packages and upgraded 2026 GDP growth to 4.5–5.5%.
Japan's headline inflation climbed to 1.9% in July—the year's high—driven by renewed energy costs and a 7.2% surge in wholesale prices, even as subsidies kept consumer inflation relatively muted; core-core inflation sits near 1.9%, fueling expectations of a BOJ rate hike in September as price pressures persist.
The U.S. Producer Price Index for final demand rose 4.7% over the past 12 months ended in July, unchanged from June on a seasonally adjusted basis. Monthly changes were mixed: final demand services up 0.2%, construction up 2.2%, while final demand goods fell 0.7%—driven by energy price declines—leaving the year-over-year inflation pace at 4.7%.
US producer prices rose 4.7% year over year in July, down from 5.5% in June and topping economists' 4.9% forecast; core PPI rose 0.2% in July to 4.2%, the lowest in four months, while energy prices have cooled after earlier spikes driven by geopolitical tensions, signaling easing but still-elevated wholesale price pressures.
US inflation eased in July, rising 3.4% from a year earlier (down from 3.5% in June) with a 0.1% monthly increase driven mainly by housing costs. Gasoline prices fell 2.9% from June but were up 24.6% year over year, while food prices rose only modestly and energy prices fell. Core inflation excluding food and energy rose 0.2%. Analysts say inflation is decelerating rather than rebounding, keeping the Federal Reserve on a cautious path, with markets largely calm as expectations align with steady rates. The report notes energy volatility and rent effects on the headline figure, underscoring the ongoing challenge for price stability.)
The July CPI rose 0.1% month-over-month (0.2% core), with annual rates of 3.4% overall and 2.5% core, broadly in line with forecasts. Energy fell 1.5% for the month, while shelter costs rose 0.1% and accounted for about two-thirds of the headline increase. The data dampened inflation momentum and nudged October/December rate-hike bets higher than September, with traders pricing roughly a 42% chance of a September move and markets expecting the Fed to hold at the September meeting pending more data.
Motley Fool argues that the Trump-era Iran conflict is driving inflation beyond energy, with core PCE staying sticky due to shipping-route shifts, fertilizer and helium shortages, and other supply-chain disruptions, potentially prompting higher interest rates and threatening the stock market rally.
BP reported a Q2 profit of $5.73 billion, more than doubling from the previous quarter as higher oil and gas prices driven by the Middle East crisis lift earnings; CEO Meg O'Neill says there is more to do, including a potential North Sea asset sale, with the industry facing windfall profits scrutiny amid rising energy bills.
Seattle is grappling with one of the nation’s highest inflation rates (4.5% in June), driven mainly by energy costs: gas around $5.30 a gallon and electricity bills rising sharply, with Seattle utilities up about 48.5% since 2024 and rate hikes planned for 2027–29. Rent and everyday expenses squeeze households—commuters like Britney Johnson spend about $1,700 on rent and $200 on utilities while cutting back on dining and groceries; many people, including tech workers, report budget-driven sacrifices and job insecurity as energy costs and the cost of living stay high. The piece notes how energy regulation, data-center demand, and the region’s high base costs are widening the gap for middle-class families.
BoE MPC member Lombardelli says her vote this month was decisive as the Bank of England held Bank Rate at 3.75% by a 6–3 margin. The decision comes amid volatile energy prices tied to the Middle East conflict, with traders trimming bets on a September rate hike to under 40%. The MPC warned energy shocks could lift inflation and stressed readiness to act if needed, noting the outlook remains sensitive to unfolding events.
The Commerce Department’s Personal Consumption Expenditures price index—the Fed’s preferred inflation gauge—fell 0.1% in June, pulling the annual rate down to 3.7% from 4.1%. The drop was driven largely by energy prices, with gasoline prices sliding as Middle East tensions cooled, boosting energy-driven consumption. Core PCE rose 0.1% month over month to 3.3% year over year, suggesting underlying inflation remains around 3%. While spending grew and the June slowdown provided some relief to households, analysts warn the decline may reverse in July due to energy volatility, keeping the inflation outlook and Fed policy path uncertain.
The Federal Reserve kept the policy rate at 3.50–3.75% in its second decision under Chair Kevin Warsh, citing inflation that remains elevated due to supply shocks including higher energy costs amid US–Iran tensions; with forward guidance pared back, markets fell on the decision as investors weigh future moves, even as June CPI fell 0.4% and annual inflation sits around 3.5%.
The Federal Reserve held its policy rate at 3.5%–3.75% for the fifth straight meeting amid rising oil prices tied to Middle East tensions, with three policymakers—Neel Kashkari, Lorie Logan and Beth Hammack—dissenting in favor of a 25-basis-point increase. Officials maintained a commitment to price stability, noting inflation remains elevated even as core inflation cooled modestly (around 2.6% in June). The dissent signals the risk that a rate hike could reemerge if energy-driven price pressures persist.
ASEAN foreign ministers at Manila meetings say the Iran war and the Hormuz disruption are swelling energy costs and disrupting shipping in Southeast Asia, forcing governments to question U.S. reliability and hedge with other partners, including China. Officials describe Washington’s leadership as less predictable and note growing diversification talks, even as Pew surveys show some ASEAN publics leaning toward China and while a full pivot remains unlikely given regional security ties and shared interests against Beijing.
Oil prices surged above $100 a barrel for the first time since May, with Brent crude climbing over 6% as renewed U.S. strikes on Iran and Houthi attacks in the Red Sea revived fears of supply disruptions. The move pushed up gasoline and gas prices in the UK and US, signaling potential inflationary pressures and prompting analysts to weigh whether rate cuts will be delayed as energy costs feed through to consumers.