The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% in September on a seasonally adjusted basis, the increase was driven primarily by a 6.7% increase in the index for used cars and trucks (the largest monthly increase since February 1969). The energy index rose by 0.8%, while the natural gas index increased by 4.2% for the month. The index for all items less food and energy rose 1.7% YoY. The food index increased by 3.9% over the last 12 months, while the energy index declined by 7.7%
The IMF’s October 2020 Global Financial Stability Report expressed concerns stating that – “The COVID-19 pandemic could be a major resilience test for the global financial system”. The report went on to say that while fiscal support and monetary easing have delivered near term global financial stability – that rising stock market valuations despite weak performance, as well as the solvency risks associated with all the pandemic related borrowing could pose significant challenges. Going forward credit availability and targeted solvency support will be essential to a sustained recovery
The U.S. Commerce Department reported retail sales rose 1.9% in September, exceeding the 0.7% Dow Jones consensus estimates. Retail sales were up from August's increase of 0.6%. Auto sales showed particular strength as excluding autos, the gain amounted to 1.5%. Clothing and accessories faired nicely rising 11%, while sales in the sporting goods sector increased by 5.7%. Electronics and appliances dropped by 1.6% over the August levels, representing a decline of 6.4% from the pace of a year ago. |