US inflation surge may remain 'uncomfortably high' as CPI reaches 6.2%

Investors debate a Federal Reserve decision

James Baxter-Derrington
clock • 2 min read
Energy costs have soared 4.8% over the past month alone, with the figure up 30% year-on-year.
Image:

Energy costs have soared 4.8% over the past month alone, with the figure up 30% year-on-year.

US inflation has surged to its highest level since 1990, as October’s consumer price index recorded a year-on-year increase of 6.2%, and a month-on-month increase of 0.9%.

The figure shoots past consensus expectations, which had pegged the rise at 5.8%, while core inflation figures, excluding food and energy, rose 4.6% compared with last year. Energy costs have soared 4.8% over the past month alone, with the figure up 30% year-on-year. BoE chief economist warns UK inflation could hit 5%  Hussain Mehdi, macro and investment strategist at HSBC Asset Management, suggested it is possible for this inflationary peak to remain "uncomfortably high". "Used car prices look set for further gains, shelter costs are picking up, while services demand is recover...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

The fall in sales volumes over the month was because of food stores, which fell by 1.6%.
UK

UK retail sales slip in May as consumer confidence falls to lowest on record

Shoppers cut back on food spending

clock 24 June 2022 • 2 min read

Event Voice: Your Questions Answered by Barings at the Fixed Income Event

Barings
clock 23 June 2022 • 2 min read
"UK is at a crossroads"
UK

Average global funds hold a third less in the UK than before Brexit

Brexit risks still an issue for managers

clock 23 June 2022 • 4 min read
Trustpilot