The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
US inflation rises to 3.7 percent in August – core rate falls
Inflation in the US increased in August with a jump in gasoline prices, but underlying price pressures continued to decline. As the US Department of Labor announced, consumer prices rose by 0.6 percent compared to the previous month and were 3.7 (previous month: 3.2) percent above the level in the same month last year. Economists surveyed by Dow Jones Newswires had expected a monthly price increase of 0.6 percent and an annual increase of 3.6 percent. Core consumer prices rose by 0.3 percent on a monthly basis and by 4.3 (previous month: 4.7) percent on an annual basis. The economists surveyed had expected a monthly rate of 0.2 percent and an annual rate of 4.3 percent.
US real incomes fall in August
Real incomes in the USA fell by 0.1 percent in August compared to the previous month. As the US Department of Labor announced, there was stagnation in July. According to the authority, the average weekly income, adjusted for seasonally and inflation, was $379.87 in August, compared to $380.25 in the previous month.
The Federal Cabinet agrees to increase citizens’ allowance by 12 percent from 2024
The Federal Cabinet has agreed to a noticeable increase in citizens’ money by around 12 percent from next year in order to mitigate the recent price increases. Around 5.5 million people are currently receiving citizen’s money, which replaced the previous Hartz IV payments at the beginning of the year. According to the Federal Ministry of Labor, the increase will cost the federal budget around 4.3 billion euros. Single adult recipients of citizen’s benefit will receive 563 euros from January, an increase of 61 euros compared to the current rate. Recipients who live in a household in a partnership will in future receive 606 instead of 541 euros.
Lindner: Need a strong economic foundation for social and ecological standards
Federal Finance Minister Christian Lindner (FDP) has warned that Europe can only maintain its social standards and ecological demands by increasing growth and competitiveness. “If we as Europeans want to maintain our social standards and our ecological demands in the coming years and decades, then we will need a strong economic foundation,” said Lindner at a press conference, which was also attended by his French counterpart Bruno Le Maire.
Cabinet decides to speed up grid connections for renewables
On Wednesday, the Federal Cabinet passed an ordinance to accelerate the grid connection of renewable systems and to reduce hurdles. Photovoltaic roof systems in particular on both commercial and private properties are intended to benefit from the changes. According to the Federal Ministry of Economics, the aim is to make the current certification process for the technical requirements of power generation systems and storage systems suitable for mass production and thus accelerate grid connections.
Germany and France praise EU review of Chinese electric cars
Germany and France support the announcement by EU Commission President Ursula von der Leyen to conduct a competition investigation into market distortions caused by Chinese subsidies for electric cars. Federal Economics Minister Robert Habeck (Greens) and French Economics and Finance Minister Bruno Le Maire said in Berlin that fair competitive conditions should be created. Both also emphasized that European interests must be protected and that there is a need for close cooperation within Europe, but especially between Germany and France.
Scholz also wants to shape the discussion on Ukraine at the UN – circles
According to expectations in German government circles, the Ukraine war will dominate next week’s General Assembly of the United Nations (UN), to which Chancellor Olaf Scholz (SPD) will also travel to New York. “The war against Ukraine and its impact will run like a common thread through many discussions,” said a high-ranking government official in Berlin. According to the information, the 78th UN General Assembly is the second in which Scholz will take part as Chancellor. A reception is also planned to mark the 50th anniversary of Germany’s UN membership on Monday.
EU Parliament adopts guidelines for e-fuels in aviation
The EU Parliament has passed mandatory requirements for airlines to use synthetic fuels, so-called e-fuels. The MPs passed the so-called RefuelEU regulation in Strasbourg. In the future, airlines will therefore have to use a prescribed minimum proportion of sustainable fuels. “The EU is leading the way worldwide in decarbonizing air traffic,” explained Green Party MEP Anna Deparnay-Grunenberg. In contrast to the automobile industry, synthetic fuels are irreplaceable in air traffic because aircraft with other engines can only travel very short distances.
DJG/DJN/AFP/apo/cbr/brb
(END) Dow Jones Newswires
September 13, 2023 1:00 p.m. ET (5:00 p.m. GMT)