Venezuelan dictator Nicolás Maduro has removed five zeroes from the country’s bolivar currency amid inflation that is expected to reach one million percent by the end of the year. The announcement comes two days after the International Monetary Fund predicted that Venezuela’s inflation would reach one million percent by the end of 2018. Maduro said the monetary conversion would spark “great revolutionary changes in the economy, which Venezuela demands.”Such a measure is indicative of the unprecedented levels of inflation experienced by the bolivar currency, which has lost over 99.999 percent of its value since 2010 as a result of socialist economic policies started under Hugo Chávez that created a highly inefficient, nationalized economy. At current exchange rates, one U.S. dollar is equivalent to 3.52 million bolivares, leading to a total collapse of people’s savings and livelihoods that has left large swathes of the … [Read more...] about One Million Percent Inflation: Venezuela Removes Five Zeroes from Currency
How to measured inflation
The PM was chairing the Government’s monthly meeting in Hanoi on July 31 to review the socio-economic situation in July and the first seven months of 2018. He said the socio-economic situation in July was better than in June when inflation was controlled well with the CPI down 0.09 percent after surging in the two previous months. Though there remains an array of difficulties, PM Phuc asserted the Government will try to keep this year’s inflation within 4 percent as targeted by the National Assembly. Core inflation (CPI excluding fresh food, energy, and State-managed services such as health care and education) has just risen by 1.36 percent in seven months. Stressing the need to have more measures to rein in inflation, he noted the big pressure for inflation increase as a result of higher interest rates in the world market, exchange rates and prices of essential goods, especially amid a trade war between China and the US. Highlighting other positive economic figures, the … [Read more...] about PM affirms resolve to control inflation amid big pressure on CPI
Sep 27, 12:04 PM EDT Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury World By Douglas Gillison 09/27/19 AT 9:00 AM A key component of the Federal Reserve's preferred inflation measure of ticked higher in August for the third month in a row, according to government data released Friday.The upward price pressures are likely to heighten disagreements among US policymakers about the need to cut interest rates again this year, as markets are expecting.Meanwhile, spending by American consumers slowed in August -- a month when the US-China trade war deteriorated and stock markets wobbled -- even though disposable incomes rose, according to the Commerce Department data.Tumbling energy prices kept a lid on overall price gains for last month, as the Personal Consumption Expenditures price index was unchanged from July, falling short of economists' expectations.Compared to August 2018, the PCE price index, which tracks costs for goods and services … [Read more...] about US Inflation Sees August Heat; Defense Lifts Manufacturing
The CME Group settled disciplinary actions against a trading firm solely on the basis of its strict liability under applicable exchange rules for the acts of two of its employees. Meanwhile, ICE Futures U.S. proposed amended guidance to authorize the settlement of certain forward contracts and swaps through exchange for related position transactions, and revised previously proposed amended guidance related to pre-hedging of block trades. As a result, the following matters are covered in this week’s edition of Bridging the Week:CME Group Settles With Trading Firm for Spoofing-Type Offenses, Holding It Strictly Liable for Acts of Agents; Orders Disgorgement of Profits (includes Compliance Weeds);ICE Futures U.S. Proposes to Authorize Settlement of Certain Forward Contracts and Swaps through EFRPs (includes Compliance Weeds);Pre-Hedging of Block Traders Permitted by Principals to Block Trades Prior to Trade Finalization Under Ice Futures U.S. Proposed Guidance Clarification … [Read more...] about Bridging the Week: October 3 to 7 and October 10, 2016 (Strict Liability; EFRPs; Block Trades; Inflated AUM) [VIDEO]
CPIH is to become the preferred method of UK Consumer Price Inflation from March 2017, according to a statement issued by the National Statistician on 10 November 2016. This follows a wide-ranging and long-lasting process of consultation and consideration. But what will be the impact on UK pensions?Pension inflation measures have been in the news a lot recently (see this Pensions Expert report). In July the gap between CPI and RPI grew to its highest level for 5 years, with the 1.3% disparity a particular concern for the sponsors of pension plans that have RPI hard-wired into their rules.The prospect of an appeal in the Barnardo’s case gave a crumb of comfort to those employers who were hoping that RPI could be treated as “replaced” even though it continues to be published. However, the Court of Appeal judgment in November upheld the earlier decision that as long as RPI exists it has not been replaced.Now, we finally have some output from the consultation on consumer … [Read more...] about UK Consumer Price Inflation: Confusion Reigns on CPI?