Soaring global inflation puts pressure on policymakers

Soaring global inflation puts pressure on policymakers


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The news this morning is British inflation The highest level in a decade reached in November is just the latest sign that price pressures are affecting the prospects for global recovery.

The National Bureau of Statistics said that consumer prices jumped from 4.2% last month to 5.1%. This was driven by rising gasoline and used car prices, but affected almost all sectors of the economy.

Today’s data puts additional pressure on the Bank of England because it will raise interest rates when it provides updates on monetary policy tomorrow. Inflation is now more than double the Bank of England’s 2% target.However, the editorial board of the Financial Times Advise decision makers Be cautious before learning more about the impact of Omicron variants.

This The International Monetary Fund also participated, Announced yesterday in its annual health check of the British economy that the bank should “withdraw special support” rather than postpone rate hikes. It predicts that Britain’s inflation rate will reach 5.5% early next year.

Yesterday’s data showed that the Fed is facing similar pressure to control its pandemic stimulus plan. Producer price Rising at the fastest rate on record. They rose 0.8% in November, with an annual growth rate of 9.6%, which is the fastest year-on-year growth rate since data was first collected in 2010.This has caused the stock market to fall, as interest rates are expected to rise faster than expected. The Federal Reserve will announce its interest rate decision and its Monetary Policy Today it is 2pm Eastern Time (7pm UK).

Tomorrow will be the European Central Bank’s turn, when its President Christine Lagarde is expected to announce a timetable for ending the European Central Bank’s 185 million euro emergency pandemic measures.This Big reading As the European Central Bank strives to control inflation, it sets out the challenges ahead.

However, investors still do not believe that the world central bank can tame this beast: they are investing billions of dollars in assets Profit or hedge from price increases.

Use our Inflation Tracker Compare the performance and expectations of countries around the world

latest news

  • U.S. homebuilders confidence reached 10-month high Strong demand for new houses

  • European Commission President Ursula von der Leyen stated that by mid-January, Omicron may become the main strain of Covid-19 in Europe (Bloomberg)

  • Italian By surprise The introduction of mandatory negative PCR or rapid testing for people traveling within the EU is strongly opposed in Brussels

For the latest news updates, please visit our Live blog. If you want to listen to the latest headlines within three minutes, please listen to our Today’s headlines Audio summary

Need to know: economy

More data confirms China’s recovery Is slowing down. November retail sales growth was lower than expected 3.9%, new home prices fell Highest interest rate since 2015. This Asian Development Bank yesterday Lower growth forecast The developing countries in the region will increase from 7.1% this year and 5.3-5.4% next year to 7%.

Health experts have warned that the United States will Try to contain Spread Omi Kron Due to low vaccination rates, inadequate testing, and inconsistent rules regarding mitigation measures (such as wearing masks). The total death toll in the United States now exceeds 800,000.

The latest UK and Europe

This UK employment rate Rise to 75.5% In the three months to the end of October, although the government’s vacation plan has ended, the return of part-time jobs that have dried up during the pandemic has facilitated this process. The unemployment rate fell to 4.2%, and in the three months to November, job vacancies reached a record 1.2 million or more. Wage growth has also remained strong.At the same time, two thirds of UK employers support increased Statutory sick pay.

Spain It is the second largest beneficiary of EU Recovery Fund grants after Italy, but—like several other member states—it Facing an uphill struggle Spend the 70 billion euros allocated quickly enough. Issues include the complexity and number of projects under consideration, as well as complex negotiations with Brussels on rules and concerns about taking legal risks in a hurry.

Industrial production in Eurozone Bounce back In October, some optimism was given to the growth prospects for the fourth quarter, which was hit hard by supply chain issues. Factory output increased 1.1% from the previous month, 3.3% higher than a year ago, but still 0.7% lower than pre-pandemic levels.

The latest in the world

U.S. retail sales growing up 0.3% lower than expected in NovemberCompared with last month, the holiday shopping season started earlier. Congress Vote for Raise government borrowing limits Avoid the last hour of default before the end of the year.

World Health Organization says rich countries are eager to manage Booster jab Will result in a 3 billion vaccine shortage In poorer countries. Only 7% of people in low-income countries have been vaccinated at least once, and 98 countries have failed to achieve WHO’s goal of immunizing 40% of their population.

The chart shows the expected number of doses set for each situation

Need to know: business

Punch bar already Acquired by Fortress Investment Group About £1 billion, this is the latest in a series of private equity transactions in the troubled hotel industry.Business leaders are not satisfied Lack of support from the British government Help new Coronavirus restrictions If Omicron spreads as quickly as expected and fears that there will be a severe labor shortage. But obviously England will not tighten the rules any further before Christmas. According to a government minister Earlier today.

This Bleak prospects Air travel seems to have ended the acquisition of Spanish rivals by Iberia owner IAG European AirlinesThe original 1 billion euro transaction was signed at the end of 2019 before the pandemic. As IAG lost billions of euros, it was renegotiated to 500 million euros in January this year.

indexThe world’s largest clothing retailer and owner of the Zara chain, according to reports Record sales and profits, Exceeding the level before the pandemic. For the nine months ended October 31, sales reached 19.3 billion euros, an increase of 37% over 2020, and net profit reached 2.5 billion euros, almost four times that of last year. The group increased online sales during the pandemic while maintaining close integration with stores.

This Streaming wars The cooperation between Disney, WarnerMedia, Netflix, Amazon and other companies that took off during the pandemic has entered a new stage, because the lifting of restrictions allows the shooting of new materials.Buyout groups are spending huge sums of money Production facilities Used for TV shows and movies.

Wall Street Giants Goldman Sachs Saxophone and JPMorgan Planning dividend After frantic transactions brought record fees, their investment bankers. The total value of US transactions in the first 11 months of 2021 reached a record high of US$2.3 trillion.

Join our Financial Times Women at the top At the Americas Summit from December 15th to 16th, learn how to advance your career and business in the workplace.

World of work

The rise of remote work raises questions about standards Five-day work week. Is it a good idea to extend your working hours to include weekends, or is it an evil erosion of our free time?Listen to our new version Work it podcast.

U.S. companies and health officials are taking further steps to promote Vaccination rate Among their workers.The supermarket chain Kroger is End sick leave related to epidemics For employees who have not been vaccinated, some of them are charged monthly medical expenses. But the judges blocked the government’s plan to mandate vaccinations for healthcare workers and federal contractors, as well as forcing companies with at least 100 employees to stab their employees or have them undergo weekly Covid-19 tests.

Covid cases and vaccination

Total global cases: 271.4m

Get the latest global pictures through our website Vaccine Tracker

At last. ..

Looking for Christmas gift inspiration?See the selection of FT writers and critics in our comprehensive report Best book of the year series.

© Cat O’Neill

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