Charting the global economy: Inflation picks up in US, Tokyo
inflation picked up along with consumer spending as the third quarter drew to a close, government figures showed ahead of the Federal Reserve’s penultimate policy meeting of the year.
Consumer price growth also gathered pace in Tokyo, an indicator of nationwide inflation. Bank of Japan officials also meet next week, as do Bank of England policymakers.
In the UK, fresh data showed employment declined for a third month.
Meantime, Israel’s central bank reduced growth estimates for this year and 2024 as the nation’s war with Hamas restrains activity.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
US
The Fed’s preferred measure of underlying inflation accelerated to a four-month high in September and consumer spending picked up, keeping the door open to another interest-rate hike in the months ahead. The core personal consumption expenditures price index, which strips out the volatile food and energy components, rose 0.3% while inflation-adjusted household outlays rose 0.4%.
The US economy grew at the fastest pace in nearly two years last quarter on a burst of consumer spending, which will be tested in coming months.
Gross domestic product accelerated to a 4.9% annualised rate, more than double the second-quarter pace, according to the government’s preliminary estimate.
In a year when the US economy exceeded almost everybody’s expectations, the underlying federal deficit roughly doubled, spotlighting a dire fiscal trajectory likely to only worsen the partisan budget battles in Washington. It also helps explain why yields on longer-term US Treasuries are reaching highs unseen since before the global financial crisis, with the government needing to issue
