Week in Review: US Inflation Holds Steady

Fed Chair Jerome Powell reiterated this week that while inflation expectations remain anchored near the Fed’s 2% target, downside risks to employment and elevated uncertainty leave policymakers without a “risk-free” policy path. He also noted that tariffs are likely to result in a one-time price adjustment spread over several quarters.

Major U.S. indices ended the week lower, with the Nasdaq Composite and S&P 500 sliding 0.65% and 0.31% respectively, marking each index’s first losing week in four, while the Dow shed 0.15%.

The week ahead brings a full slate of economic releases, led by the closely watched U.S. employment report, which will provide fresh insight into payroll growth, unemployment trends, and wage pressures—key indicators shaping the Federal Reserve’s policy outlook. In Europe, attention will centre on new inflation data for the eurozone and its member states, alongside CPI figures from Turkey and Switzerland. On the monetary policy front, interest rate decisions in Australia and India will also be in focus.

Market Moves of the Week

In local news, South Africa’s producer inflation accelerated to 2.1% year-on-year in August, up from 1.5% in July, according to Statistics South Africa. On a monthly basis, the Producer Price Index (PPI) rose 0.3%, with the increase driven largely by higher prices in the food, beverages, and tobacco category, which climbed from 3.9% to 4.3% year-on-year as food inflation reached 4.1%.

In markets, the JSE All Share Index ended the week 0.56% higher, supported by continued strength in resource stocks. The rand firmed in late Friday trade, closing at R17.32 per U.S. dollar.

Chart of the Week:

Gold has extended its rally this year, rising more than 40% and on track for its strongest annual performance in over four decades. Not since 1979—when the metal more than doubled amid investor fears that inflation would never abate—has gold experienced such a powerful and sustained surge.

Credits: Strategiq