Consumer Prices Climb in the UK
Another country has seen a noticeable rebound in consumer prices—this time, it’s the United Kingdom, reporting an inflation rate of 2.3%. While not exceedingly high, it’s a 0.6% increase from the previous month. Yesterday’s data on UK inflation revealed a jump in the annual consumer price index (CPI), which was 1.7% in September but has now risen to 2.3%. Analysts had anticipated an increase but estimated it at 2.2%. Furthermore, core inflation, which was expected to decrease, also rose slightly to 3.3%. This trend indicates that if oil prices stabilize, inflation could accelerate again. However, the impact of lower oil prices is expected to persist for a few more months unless oil prices surge again—a possibility given the geopolitical tensions in the Middle East.
China Keeps Interest Rates Steady
China’s central bank announced yesterday that it would maintain its interest rates at the current levels. The main rate remains at 3.6%, which is relatively low compared to Western economies. Notably, during the pandemic, China avoided flooding its economy with cheap money—a common criticism leveled against its government—and consequently, avoided the significant inflationary pressures seen in the West.
Why, then, do analysts foresee potential monetary policy changes in China? The country’s economy has yet to fully recover from the pandemic. Lower borrowing costs could help mitigate the risk of an economic slowdown.
Bitcoin on the Rise
The world’s most popular cryptocurrency continues to soar following Donald Trump’s electoral victory. The exact reasons for the heightened investor interest are unclear, but the basic investment principle holds true—investors buy assets when their prices are rising. Bitcoin has been climbing steadily, gaining 40% since the U.S. elections. At the time of writing, its price had surged to around $98,000, bringing it tantalizingly close to the long-anticipated $100,000 mark.
While some predict a potential correction after such gains, the current market frenzy shows little indication of sellers stepping in.
Key Macro Data to Watch Today:
- 2:30 PM (EST): United States – Jobless claims
Maciej Przygórzewski – Chief Analyst at InternetowyKantor.pl
Source: CEO.com.pl
