US Incomes, Spending Rise Modestly Amid Persisting Inflation

US personal incomes and spending showed modest growth in June, with steady job additions and slightly rising wages, but inflation remains persistently above the Federal Reserve's target, keeping expectations for rate cuts low. The core PCE inflation rate held at 2.7%, sustaining pressure on prices and indicating that borrowing costs may remain elevated for some time, impacting global economies. In Australia, inflation has eased to around 2.1%, prompting expectations of an imminent cash rate cut by the Reserve Bank, although concerns about slow economic growth and rising unemployment suggest underlying economic strain. Job growth in Australia is slowing, with increased part-time positions and low job mobility reflecting worker caution amid ongoing economic uncertainty. Meanwhile, a newly agreed US-EU trade framework imposing a 15% import duty on EU goods could lead to higher prices in the US but is unlikely to cause inflation in Sweden, where the impact on consumers is minimal; however, the agreement risks slowing economic growth and potentially affecting stock markets and pensions. Overall, while inflation trends vary across regions, the balance between managing inflation and supporting growth remains a key challenge worldwide.