JAKARTA (TheInsiderStories) — Good morning! The inflation rate in United States (US) rose 0.41 percent in March, following the prior month at 0.2 percent, the Labor Department reported on Wednesday (04/10). This is the biggest increase since January 2018.
The consumer prices rose driven by an increase in volatile oil prices that masked moderate underlying price pressures. Rising prices for energy and food helped push the annual headline inflation measure up to 1.86 percent in March from 1.50 percent in February.
On an annual basis, the consumer prices index rose 2.0 percent, following a 2.1 percent increase in February driven by a decline in core inflation excluding volatile goods such as food and energy, which fell to 2 percent in March from 2.1 percent in February.
With that, the annual rate of inflation rose to 1.9 percent in March from a low of two and a half years 1.5 percent the previous month.
European Union (EU) rejected to back US President Donald Trump’ call for tougher sanctions against Venezuelan President Nicolas Maduro. On last week’ NATO summit indicating that Maduro is digging in with the aid of Russia.
US has expanded sanctions to block Venezuela’ oil exports by targeting its tanker fleet, announced by the U.S. Department of Energy. Europe, on the other hand, continues receiving oil from Venezuela despite crippled production.
Moreover, EU is reported planning to grant United Kingdom’s Prime Minister Theresa May request for a second Brexit delay. Meanwhile, May has asked them to wait until June 30 as she seeks help from her Labour opponents to support her plan for leaving the EU.
European Board Presiden Donald Tusk has proposed a flexible extension of nine months to a year to give the UK time to end deadlock over parliament’ refusal. May has an option to accept that by announcing she is ready to hold an election for EU lawmakers on May 23.
If the UK citizens do not vote, they must leave with deal or not, on June 1. Otherwise, Britain would leave as soon as it ratifies the deal, or without one when the extension ends.
Yesterday, European Central Bank officials reiterated their pledge to keep interest rates at record lows, giving themselves time to assess prospects for the euro area’s weakened economy as it confronts new risks. Uncertainties from global trade continue to cloud the region’s outlook.
Moreover, the Governing Council may wait until June before deciding on how much stimulus will be needed. The ECB has predicted an economic growth pickup in the second half, but that scenario is being challenged by continuously weak numbers that contributed to a downward revision of the International Monetary Fund’ global outlook, new threats of US import tariffs, and undecided of Brexit are weighing on sentiment.
On Wednesday, Rupiah against Dollar slightly depreciated by 0.03 percent. The Jakarta Composite Index declined by 0.09 percent to 6,478.32, while foreign inflow recorded at Rp342.88 billion.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia