A closely watched report by the US Bureau of Labour Statistics published on Wednesday showed that consumer prices inched up in line with economists’ expectations in November. The Consumer Price Index (CPI) rose by 2.7% during the 12 months ending in November, higher than the 2.6% increase reported in October. Compared to the prior month, prices rose by 0.3% after climbing by 0.2% in the previous four months.

Core CPI, which leave out volatile food and energy categories, rose by 3.3%. Economists had predicted the headline figure to pick up by 0.2% from October and by 2.7 on an annual basis. Analysts believe the latest inflation print is unlikely to derail another interest rate cut from the Federal Reserve (Fed) later this month. But, together with strong consumer spending and a resilient jobs market, it could make the Fed consider slowing the expected pace of rate cuts next year.

Meanwhile in the UK, demand for workers tanked in November following the October budget, the ‘KPMG/REC Report on Jobs’ revealed on Monday, confirming the adverse effect of the tax increases on employers. Permanent job placements recorded their largest decline since August 2023 amid reports of reduced vacancies, the report showed. On the other hand, temporary staff billings fell for a fifth consecutive month, for the same reasons.

Salary growth of permanent staff remained relatively unchanged on October’s 44-month low. Temp pay rates rose only moderately and to a slightly lesser extent than in October. The data also showed a faster fall in vacancy numbers. Staff demand also fell for the 13th month in a row and the latest fall was the highest reported for over four years.

“Businesses are having to weigh up the prospect of increasing employee costs following the budget, which has led to an accelerated slowdown in hiring activity across the board,” Jon Holt, group chief executive at KPMG, said.

Finally, China’s exports and imports both missed forecasts in November, confirming worries that the world’s second largest economy is deteriorating, amid weak consumer demand and looming US tariffs. Exports increased by 6.7% annually in November, weaker than the 12.7% increase in October, figures from the country’s customs authority showed on Tuesday. Imports fell by 3.9% on an annual basis, after falling by 2.3% in October, signalling continued weakness in consumption and domestic demand.

This article does not constitute legal and/or financial advice and is being issued for information purposes only by Bank of Valletta plc, 58, Zachary Street, Valletta. Bank of Valletta is a public limited company regulated by the MFSA and is licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap. 371 of the Laws of Malta) and the Investment Services Act (Cap. 370 of the Laws of Malta).