▸ Wall Street retreats after inflation data underscores fears over interest rates▸ US government borrowing costs rise as investors offload benchmark Treasuries▸ Paris stocks extend declines in week of political turmoil in FranceWall Street stocks dropped yesterday after inflation data underscored investors' nervousness about the trajectory of interest rate cuts in the world's biggest economy.The tech-heavy Nasdaq Composite index had fallen 1.2 per cent by early afternoon in New York. The blue-chip S&P 500 index was down 0.8 per cent.The Personal Consumption Expenditures price index — the central bank's preferred measure of inflation — rose 2.6 per cent in July. That was in line with analysts' expectations but above the US Federal Reserve's 2 per cent target.“We expect tariff-related price pressures to exert further upward pressure on core inflation in the coming months,” said Pooja Sriram, vicepresident for US economics at Barclays.Persistently high inflation would be a hurdle to the central bank cutting its benchmark interest rate.
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