WRAPUP 3-Weak US consumer prices, retail sales put spotlight on Fed

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Excluding the food and fuel categories, which can see big swings from month to month, "core" CPI rose 0.1 percent, the third month in a row this closely-watched data point has come in below expectations.

The retail data, along with May inflation data, give the Federal Reserve the most up-to-date picture of the economy as policymakers finalize their expected decision to hike the central bank's key interest rate on Wednesday and provide guidance about future policy.

USA retail sales recorded their biggest drop in more than a year in May amid declining purchases of motor vehicles and discretionary spending, which could temper expectations for a sharp acceleration in economic growth in the second quarter. Further rate hikes are likely to depend on the outlook for inflation and economic growth.

And hiring in the United States remains solid if slowing, with employment at a 16-year-low of 4.3 percent - even below the level that the Fed associates with full employment.

Vehicle sales remained sluggish for the month, falling 0.2 percent in May, while electronics and appliance sales saw their largest monthly decrease in more than seven years, plunging 2.8 percent. Power generation rose by 5.4 per cent in April, down from 14.4 per cent expansion in April previous year.

United Kingdom wages dropped by 0.6% in real terms in the three months to April as inflation continues to take a toll on British households, according to the Office for National Statistics.

Excluding automobiles, gasoline, building materials and food services, retail sales were unchanged last month after an upwardly revised 0.6 percent rise in April.

Maharashtra SSC Class 10th Result 2017: To be declared shortly at mahresult
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Growth is expected to pick up this quarter after being held back by a near stall in consumer spending and a slower pace of inventory investment at the start of the year.

According to the CSO data, manufacturing sector, which constitutes 77.63 per cent to the IIP, grew at 2.6 per cent in April compared to 5.5 per cent in same month previous year. The Atlanta Fed is forecasting GDP rising at a 3.2 percent annualized rate in the second quarter.

Medical services such as the cost of doctor's visits dipped 0.1 percent in May but have risen 2.5 percent over the past 12 months.

Pay growth dropped to a weaker than expected 1.7% in the quarter, while inflation rose to 2.9% last month, resulting in a pay cut of £147 for the average United Kingdom worker. Prices for U.S. Treasuries rallied, while stocks on Wall Street were little changed. Owners' equivalent rent of primary residence advanced 0.2 per cent after a similar increase in April.

Clothing costs dropped 0.8 per cent in May while the cost of new cars and used cars both fell 0.2 per cent.

The Fed on Wednesday increased borrowing costs for the second time this year, while acknowledging the recent moderation in inflation pressures. Analysts were expecting a 0.1% rise, while April's figure showed a 0.4% growth. Receipts at restaurants and bars dipped 0.1 per cent, while sales at sporting goods and hobby stores fell 0.6 per cent.

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