FT News Briefing Why inflation is sticking around
4 snips
Mar 21, 2024 Discover how persistent inflation in the U.S. is complicating Federal Reserve interest rate decisions, especially due to rising service costs. Explore the impressive profits of PDD Holdings, which doubled revenues and signifies a booming Chinese ecommerce sector. The discussion also highlights a renaissance in nuclear energy, driven by new technologies like small modular reactors, aimed at enhancing energy security and combating climate change.
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Sticky Inflation
- US inflation ticked up in February after a period of decline, worrying markets.
- Services inflation, a larger part of consumer spending, is proving stickier than goods inflation.
Services Inflation Stickiness
- Services inflation is stickier than goods inflation due to its link with wages and domestic factors.
- The Fed likely wants to see persistent progress towards 2% inflation or job market weakness before cutting rates.
PDD Holdings Growth
- PDD Holdings, parent company of Temu, saw revenue double in the last quarter of 2023.
- Although Temu isn't profitable yet, PDD's profits are driven by fees on its platforms.