Inflation in the United States has jumped up to 8.6% according to data released today by the Bureau of Labor Statistics. The news is a surprise 0.3 percentage point rise, more than expected by analysts, and puts the USA at a 40-year high inflation rate.
In response, the Dow Jones has fallen by 762 points (2.35%), with greater losses for the S&P 500 (2.74% lost) and the tech-led Nasdaq (down 3.46%).
The news makes for a rough Friday across global trading floors after European markets fell earlier today over stagflation fears. The FTSE 100 in the UK has had four days of losses, whilst the FTSE MIB of Italy dropped 1.8% today and Germany’s DAX 30 also lost 1%.
Bundesbank projections: Economic recovery likely to continue, albeit at a more subdued pace. #Consumerprices will rise sharply in 2022 and #pricepressures will probably only subside gradually from 2023. https://t.co/ruixMIqv9U #economicactivity #economy #inflation #HICP #GDP pic.twitter.com/NrSQsgws8o
— Deutsche Bundesbank (@bundesbank) June 10, 2022
Germany’s central ‘Bundesbank’ has also halved its 2022 growth forecast, citing inflation as the cause for diminished consumer confidence amidst a lack of purchasing power.
