WASHINGTON (Alliance News) – The dollar is losing ground against all of its major rivals Friday afternoon. US consumer prices grew by less than expected in July, which raised uncertainty among investors over a Fed rate hike in December.
A report released by the Labor Department on Friday showed a modest uptick in consumer prices in the US in the month of July. The Labor Department said its consumer price index inched up by 0.1% in July after coming in unchanged in June. Economists had expected prices to rise by 0.2%.
Excluding food and energy prices, core consumer prices still crept up by 0.1% in July, matching the increases seen in the three previous months. Core prices had also been expected to climb by 0.2%.
The dollar has dropped to nearly a 1-week low of USD1.1825 against the Euro Friday afternoon, from an early high of USD1.1748.
Germany’s consumer price inflation accelerated to a three-month high in July, final data from Destatis showed Friday.
Inflation, based on consumer prices, grew 1.7% annually, slightly faster than the 1.6% increase registered in June. This was the fastest since April and came in line with the flash estimate published on July 28.
Germany’s wholesale price inflation eased to an eight-month low in July, data from Destatis showed Friday. Wholesale prices advanced 2.2% on a yearly basis in July, slower than the 2.5% increase in June. This was the weakest growth since November 2016, when prices gained 0.8%.
French inflation held steady in July, as estimated initially, final data from the statistical office Insee showed Friday. Consumer prices climbed 0.7% year-on-year in July, the same rate as seen in June and in line with the preliminary estimate.
French payroll employment increased notably in the second quarter, the statistical office Insee said Friday. Private payroll employment climbed 91,700 or 0.5% from the first quarter. Employment had advanced 57,700 or 0.3% in the first quarter.
The buck has slipped to around USD1.3015 against the pound sterling this afternoon, from a high of USD1.2932 this morning.
The greenback rose to an early high of Y109.403 against the Japanese Yen Friday morning, but has since eased back to around Y109.025.
Copyright RTT News/dpa-AFX