Futures on Wall Street fell sharply after a key measure of inflation ticked higher in January, adding to expectations that the US Federal Reserve will keep raising interest rates this year.
The Personal Consumption Expenditures price index report released by the Commerce Department on Friday showed that prices rose 0.6 per cent from December to January. On a year-on-year basis, the PCE increased from 5.3 per cent in December to 5.4 per cent in January.
Core PCE, which excludes food and energy, also climbed 0.6 per cent. Both reports exceeded forecasters' estimations.
Meanwhile, consumer spending surged to 1.8 per cent after falling in December.
Friday's data show that inflation continues to grip the economy despite the Fed's aggressive efforts to control it.
The central bank has raised interest rates eight times from a near-zero level in March 2022 to its current range of 4.5 per cent to 4.75 per cent.
Stocks on Wall Street slid following the report's release.
The Dow Jones dropped 435 points (or 1.31 per cent). The S&P 500 and Nasdaq Composite dropped 1.5 per cent and 1.81 per cent, respectively.
Traders also expect the Fed to raise interest rates by a quarter of a point for their next three meetings, CME's FedWatch Tool shows, which would exceed the bank's end-of-year median estimate.
Last week's Consumer Price Index report showed that consumer prices rose by 6.4 per cent year-on-year in January, a step down from last summer's 9.1 per cent peak but still stubbornly above the Fed's long-term 2 per cent goal.
The Fed prefers monitoring the PCE to determine its monetary policy because it provides a more thorough understanding of consumer behaviour.
The central bank has been attempting to navigate a so-called soft landing by slowing the economy without driving it into a recession.
Recently released government data show that the economy remains resilient, particularly in the jobs market. Fewer workers applied for jobless claims last week than expected and the nation's 3.4 per cent unemployment rate is at a 53-year low.
And while a revised gross domestic product estimate released on Thursday was slightly weaker than first expected, the economy still grew at 2.7 per cent in the fourth quarter of 2022.
Policymakers are scheduled to hold their next Federal Open Market Committee from March 21-22.
CREW
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APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
Jawan
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Director: Tim Burton
Rating: 3/5
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Essentials
The flights
Etihad (etihad.ae) and flydubai (flydubai.com) fly direct to Baku three times a week from Dh1,250 return, including taxes.
The stay
A seven-night “Fundamental Detox” programme at the Chenot Palace (chenotpalace.com/en) costs from €3,000 (Dh13,197) per person, including taxes, accommodation, 3 medical consultations, 2 nutritional consultations, a detox diet, a body composition analysis, a bio-energetic check-up, four Chenot bio-energetic treatments, six Chenot energetic massages, six hydro-aromatherapy treatments, six phyto-mud treatments, six hydro-jet treatments and access to the gym, indoor pool, sauna and steam room. Additional tests and treatments cost extra.
3%20Body%20Problem
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MATCH INFO
Inter Milan 2 (Vecino 65', Barella 83')
Verona 1 (Verre 19' pen)
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor