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U.S. Producer Prices Rise More than Expected in October By Tradebuddy.online

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© Reuters. U.S. PPI increases 0.4% in October vs. forecast for 0.1% gain

Tradebuddy.online – U.S. producer price inflation and its core reading increased more than expected in October, surprising forecasts that were looking for factory gate to ease from a month earlier, official data showed on Tuesday.

In a report, the Commerce Department said that increased 0.4% last month, topping the forecast for a 0.1% gain and matching September’s increase.

Year-over-year, the (PPI) rose 2.8% in October, compared to expectations for a gain of 2.4% and higher than the 2.6% increase in the preceding month.

The , that excludes food and energy, also rose 0.4% in October, beating forecasts for a gain of 0.2% while matching the prior month’s advance.

increased at an annualized rate of 2.4% last month, above forecasts for a 2.3% increase and the gain of 2.2% in September.

Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. Furthermore, when producers pay more for goods, they are more likely to pass price increases on to the consumer, so PPI could be considered a leading indicator of inflation.

After the report, was trading at 1.1744 from around 1.1746 ahead of the release of the data, was at 1.3097 from 1.3105 earlier, while was at 113.50 from 113.48 earlier.

The , which tracks the greenback against a basket of six major rivals, was at 94.02, compared to 94.01 ahead of the report.

Meanwhile, U.S. stock futures pointed to a lower open. The fell 0.16%, the lost 0.19%, while the edged down 0.08%.

Elsewhere, in the commodities market, traded at $1,274.19 a troy ounce, compared to $1,275.84 ahead of the data, while traded at $56.51 a barrel from $56.45 earlier.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Economic Indicators

Low growth, inflation could point to Colombia rate cut: Reuters poll By Reuters

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© Reuters. Colombian Nukak Maku Indian woman counts money at a park in San Jose del Guaviare

By Nelson Bocanegra

BOGOTA (Reuters) – Disappointing third-quarter growth figures, falling inflation and recent comments by central bank board members could mean a cut in Colombia’s benchmark interest rate at a meeting on Friday, according to a Reuters survey of analysts.

The nation has faced the fallout from lower oil prices and domestic consumption, as well as once-high inflation figures that split the seven-member board’s focus.

Though 11 of 16 analysts estimate the monetary authority will hold the rate at 5 percent, the remaining five projected a cut of 25 basis points to 4.75 percent.

The survey took place after the government reduced its gross domestic product growth target for 2017 to 1.8 percent after reporting a smaller-than-expected third-quarter expansion.

In a central bank poll of analysts conducted just prior to the GDP data, the forecast was that policymakers would hold the interest rate steady through year-end.

Bank chief Juan Jose Echavarria said on Friday that the growth figures were lower than hoped, while Finance Minister Mauricio Cardenas, who represents the government on the board, said there remained space for cuts.

The board surprised the market in October by reducing borrowing costs by 25 basis points to 5 percent. Analysts had expected a hold.

“The GDP figures still show the economy needs more stimulation. If it’s not lowered now, it could complicate the macroeconomic panorama due to an increase in rates by the (United States) Federal Reserve or negative news on an external level that might negatively impact emerging economies,” said Andres Abadia of Pantheon Macroeconomics in London.

This month board member Juan Pablo Zarate told Reuters that the growth projections justify a more expansive monetary policy.

Expectations for end of 2017 inflation were down to 3.9 percent from 4.09 percent in October’s survey, just within the bank’s 2 to 4 percent target range. It would be the first time in two years that the figure has fallen below 4 percent.

“Recent comment by board members point to inflationary risks diminishing and the production gap widening, which we think will lead the board to head toward expansionist territory before we previously anticipated,” Sergio Olarte of BTG Pactual said.

Still, the majority of analysts thought the rate would remain unchanged.

“Strategically, the position for the close of the year should be neutral, with which the bank will reinforce its message of complying with the inflation target. That’s why we expected an unaltered rate in November and December,” said Daniel Escobar of Global Securities brokerage.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Economic Indicators

Backpackers, students ripped off in Australian jobs: survey By Reuters

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© Reuters. Backpackers, students ripped off in Australian jobs: survey

MELBOURNE (Reuters) – Backpackers and international students are getting a raw deal in casual jobs in Australia, a survey found, confirming a long-held suspicion that employers were severely under paying workers who account for a 10th of all jobs in the country.

Most of the workers employed as fruit pickers to dish washers knew they were earning well below Australia’s minimum wage, the online survey of more than 4,000 people in 12 industries showed on Tuesday.

The people were on working-holiday or student visas and accounted for 11 percent of Australian jobs, mostly in restaurants and takeaways, petrol stations, car washes, farms, meatpacking, taxi-driving, factories, cleaning and child care.

“The study reveals that Australia has a large, silent under-class of migrant workers that are paid well below the minimum wage,” said Bassina Farbenblum, a senior law lecturer at the University of New South Wales, who ran the survey with researchers at the University of Technology Sydney.

The survey drew attention to the widespread nature of the problem, in the wake of wage scandals involving 7-Eleven and Caltex Australia (AX:) in the past two years, which led the government to step up fines for employers who underpay staff.

It also comes amid broader concerns among policy makers about Australia’s tepid wages, with latest figures showing annual pay rates grew at a slow 2 percent in the third quarter.

In the minutes of its latest policy meeting, the Reserve Bank of Australia warned of “considerable uncertainty” about how quickly wages growth and inflation might pickup.

The survey found that workers from Asian countries, including China, Taiwan and Vietnam, were paid less than workers from North America, Ireland and the UK.

“There’s been a common misconception that they’re underpaid because they simply don’t know Australian labor laws, and that’s really not the case at all,” Farbenblum said.

Fruit and vegetable pickers were the worst paid. Growers rely on young people on working-holiday visas, who in turn can extend their visas to stay for a second year if they complete three months of work in the rural industry.

Around a third of fruit and vegetable pickers were paid A$10 ($7.50) an hour or less, and one out of seven were paid A$5 an hour or less, which was less than a quarter of the minimum wage for casual jobs at the time.

“It’s really incredibly egregious,” Farbenblum told Reuters.

($1 = 1.3263 Australian dollars)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Continue Reading

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