The US Labour Department reported that US consumer prices increased by more than expected during October, lifting the annual rate of price growth to its highest level in over 30 years.
The consumer price index jumped by 0.9 per cent in October, well above the 0.6 per cent expected, after rising by 0.4 per cent in September.
The bigger than expected increase in consumer prices was partly due to a surge in energy prices, which spiked by 4.8 per cent in October after jumping by 1.3 per cent in September. Food prices also continued to see notable growth in October, advancing by 0.9 per cent for the second consecutive month.
Consumer price inflation in Germany also rose at the fastest pace since 1993- Bank of Valletta
The annual rate of growth in consumer prices accelerated to 6.2 per cent in October from 5.4 per cent in September, reaching the highest level since November of 1990. The annual rate of growth in core prices also accelerated to 4.6 per cent from 4.0 per cent, reflecting the biggest jump in prices since August 1991.
Consumer price inflation in Germany also rose at the fastest pace since 1993, driven by higher energy prices. CPI advanced to 4.5 per cent in October, from 4.1 per cent in September. This was marginally lower than the 4.6 per cent measured in August 1993. On a monthly basis, the CPI gained 0.5 per cent in October, as expected.
Goods’ prices increased seven per cent annually, driven by the 18.6 per cent rise in energy product prices, while services prices were up 2.4 per cent. Excluding energy prices, German inflation was 3.1 per cent in October.
Consumer prices in China were up 1.5 per cent on an annual basis in October, above expectations for an increase of 1.4 per cent, following the 0.7 per cent gain in September. On a monthly basis, consumer prices rose 0.7 per cent, up from a flat reading in the previous month.
Meanwhile, Chinese producer prices jumped 13.5 per cent on a yearly basis in October, beating forecasts for an increase of 12.4 per cent, following the 10.7 per cent gain in September.
This report was compiled by Bank of Valletta for general information purposes only.