View more on these topics

Huge fall in US Consumer Price Index

The American Consumer Price Index (CPI) fell by 1.3% over the past year, its largest yearly fall since 1950.

The index, which is a gauge of the cost of living in the country provided by the Bureau of Labor Statistics, was mainly impacted by a collapse in energy prices, which have fallen by 27.3% over 12 months to the end of May. Transportation was also a major drag on the index, falling 14.3% over the period.

Despite the overall falls, the shelter, new and used motor vehicles, and medical care indices all posted increases over May. There was more bad news for the American housing market, however, which saw a third consecutive monthly decline of 0.1%, although over the year the housing index is up 2.7%.

Higher commodity prices could compound problems for American companies as already weak sales mean they will struggle to pass on higher production costs to consumers.


Vote of confidence

While it is too early to say whether or not the markets are on their way up in the long term, there is some good news for the fund industry.

Firms cutting graduates by half

Fifty-seven per cent of financial services firms are reducing graduate recruitment by half or more compared with last year, according to research by the Securities & Investment Institute.

Gibbs to head merged Jupiter trust

Jupiter is planning to merge three split-capital investment trusts and relaunch them as a single tax­efficient trust managed by Philip Gibbs.Tony Nutt’s Second Enhanced Income Trust, Gibbs’s Second Split Trust and the Defined Capital Return fund, a pas­sively managed, Jersey-domiciled vehicle, are the affected funds.The combined assets will create a vehicle with more than £200m […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment