Powell’s Five Inflation Benchmarks Are Starting to Flash Amber
“Federal Reserve Chairman Jerome Powell’s inflation dashboard is starting to show some signs of overheating. From spreading price increases to rising wages, it’s signaling more caution on the inflation front than when Powell unveiled the benchmarks less than three months ago. In a speech to the Fed’s annual Jackson Hole conference, held virtually in late August, Powell sketched out five ways of assessing the outlook for inflation and argued that each of them suggested there was no cause for alarm.”
Inflation at 5% a Reality for Almost a Third of U.K. Spending
“Inflation for almost a third of the things U.K. consumers usually buy is running at 5% or more a year, delivering another alarm about rising prices to the Bank of England. From olive oil to cigars and cinema tickets, almost 30% of the shopping basket of goods and services used to calculate the cost of living was growing by more than 5% in October, according to analysis by Bloomberg. In September, just a fifth items were rising at that pace.”
Japan’s Export Growth Slows Further as Supply Snags Weigh
“Japan’s exports gained at the slowest pace in eight months in October as car shipments continued to slump, adding to signs that global supply constraints are still weighing on the economy after it contracted by more than expected last quarter. The value of Japan’s overseas shipments increased 9.4% from a year earlier, according to the Ministry of Finance on Wednesday. Economists had expected a gain of 10.3%.”
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