The persistence of elevated inflation has started to worry many market participants and central banks, because the longer CPI (consumer price index) inflation remains elevated, the higher the risk that inflation expectations accelerate. While the currently elevated levels of realized inflation do appear to have
A sharp rise in natural gas prices since August has put upward pressure on a host of commodities, including coal, electricity, and oil, while squeezing margins for industrial users. Forced curtailment of industrial activities has contributed to higher prices for other commodities, such as base
Blacked out homes, unlit streets, and factory shutdowns – China has been gripped by its worst power shortage in decades since mid-August, leading to electricity rationing in many provinces. Power cuts have disrupted many households and industries in the country, from the manufacturing hubs of
Another firmer-than-expected U.S. CPI (Consumer Price Index) inflation report for October 2021 strongly suggests that U.S. Federal Reserve officials will pull forward their expected timetable for raising the policy rate in an effort to manage the risk that long-term inflation expectations accelerate as a result
As expected, the U.S. Federal Reserve announced the first reduction in its monthly pace of bond purchases at the November FOMC (Federal Open Market Committee) meeting, while also admitting that the outlook for inflation is more uncertain. Markets responded calmly to the news but looking