Inflation rises in China and Germany as oil prices rise | a job

[ad_1]

Good morning, and welcome to our renewed coverage of the global economy, financial markets, the eurozone, and business.

We have woken up to the news that inflation has rebounded in China and Germany, while oil prices are also on the rise, adding to concerns that rising price pressures may prompt central banks to raise interest rates.

Germany’s inflation rate rose to 4.5% in October from 4.1% in September, but is just below August’s 4.6% rate, according to the country’s statistics office Destatis.

The rise in energy prices was behind the rise, rising 18.6% year-on-year, and up for the fourth consecutive month. Heating oil prices doubled and auto fuel jumped 35% while natural gas and electricity prices rose 7.4% and 2.5%, respectively. Food prices were also higher, rising 4.4% in October, driven by more expensive dairy products, eggs, bread and cereals.

Meanwhile, inflation in China jumped to an annual rate of 1.5% in October from 0.7% in September, hitting a 13-month high, official figures showed. The increase was driven by rising food and fuel prices. Factory gate prices rose 13.5%, the fastest rate in 26 years, as coal prices soared amid the energy crisis in China’s industrial heartland.

In the oil markets, Brent crude rose 0.6% to $85.31 a barrel, while US light crude rose at $84.46 a barrel, up 0.37%.

Stocks in Asia slipped, with Hong Kong’s Hang Seng down 0.3% while the Shanghai Composite lost 0.4%, recognizing some of its earlier losses, and Japan’s Nikkei shedding 0.6%.

European stock markets are set to open lower ahead of the latest US inflation data.

At lunchtime, US inflation figures for October are expected to show consumer prices rose to 5.8% on an annual basis, the highest level in 30 years, according to a Reuters poll of economists’ forecasts.

Michael Hewson, chief market analyst at CMC Markets UK said:

With a number of Federal policy makers sounding louder about the need to raise interest rates next year, a strong number here could lead to a recovery in the US. [bond] Which has fallen very sharply in the past week or so, with a 10-year decline of more than 15 basis points from last week’s highs.

Agenda

9 am GMT: Italian Industrial Production for September 1.30 pm GMT: US inflation for October (expected: 5.8%) 1.30 pm GMT: US jobless claims 1.30 pm GMT: Silvana Tenrio, Bank of England policymaker speaks.

[ad_2]