Tausi Insider

A person shops at a grocery store in Glenview, Ill., on July 4. Nam Y. Huh/The Associated Press Price increases moderated in the United States last month in the latest sign that the inflation pressures that have gripped the nation might be easing as the economy slows and Americans grow more cautious. Consumer inflation reached 7.7 per cent in October from a year earlier and 0.4 per cent from September, the government said Thursday. The year-over-year increase, down from 8.2 per cent in September, was the smallest rise since January. A separate gauge called core inflation, which excludes volatile food and energy, rose 6.3 per cent in the past 12 months and 0.3 per cent from September. The numbers were all lower than economists had expected. Helping drive the inflation slowdown from September to October were used car prices, which dropped for a fourth straight month. Prices of clothing and medical care also fell. Food price increases slowed. By contrast, energy prices rebounded in Octo...

U.S. retail sales increased more than expected in October as households stepped up purchases of motor vehicles and a range of other goods, suggesting consumer spending picked up early in the fourth quarter, which could help to support the economy. The solid retail sales reported by the Commerce Department on Wednesday and signs of a slowdown in inflation raised cautious optimism the economy could avoid an anticipated recession next year or just experience a mild downturn. “We might be in for a soft landing after all,” said Paul Ashworth, chief North America economist at Capital Economics in Toronto. Retail sales rose 1.3 per cent last month after being unchanged in September. Economists polled by Reuters had forecast sales rising 1.0 per cent. Retail sales are mostly goods and are not adjusted for inflation. They increased 8.3 per cent year-on-year in October. One-time tax refunds in California, which saw some households receiving as much as $1,050 in stimulus checks, likely helped t...

The U.S. trade deficit widened sharply in October as slowing global demand and a strong dollar pushed goods exports to a seven-month low, suggesting that trade could be a drag on economic growth this quarter if the trend persists. The report from the Commerce Department on Tuesday, which followed on the heels of recent upbeat news on the economy ranging from consumer spending, the labour market to the services industry, did not change perceptions that the economy had got off to a solid start in the fourth quarter. “A rewidening in the trade balance will mechanically weigh on GDP growth fourth quarter,” said Veronica Clark, an economist at Citigroup in New York. “However, this should be partly offset through strength in domestic demand, particularly in business investment as real capital goods imports have jumped in the last few months.” The trade deficit increased 5.4% to $78.2 billion. The second straight monthly widening in the trade gap was partly driven by a shift in pharmaceutic...