NEWSLETTER
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US inflation jumps
Inflation across a wide range of products that consumers buy daily was even worse than expected in October, reaching the highest level in the last 30 years, the U.S. Department of Labor said on Wednesday.
The consumer price index, a basket of goods ranging from gasoline and healthcare to groceries and rents, rose 6.2% from a year ago to its highest level since December 1990.
This is also higher than the 5.9% Dow Jones poll median estimate. On a monthly basis, CPI increased by the same 0.9% against the forecast of 0.6%.
Subtracting variable food and energy prices, the so-called core CPI rose 0.6% against an estimate of 0.4%. Annual core inflation reached its highest level since August 1991 at 4.6%, compared to the 4% expected.
Fuel prices rose 12.3% for the month as part of a 59.1% increase from last year. Energy prices overall rose 4.8% in October and rose 30% for the 12-month period.
President Biden acknowledged that the numbers were high and that his administration would work to find solution the unsettling aspects of the inflation on the people.
The consumer price index, a basket of goods ranging from gasoline and healthcare to groceries and rents, rose 6.2% from a year ago to its highest level since December 1990.
This is also higher than the 5.9% Dow Jones poll median estimate. On a monthly basis, CPI increased by the same 0.9% against the forecast of 0.6%.
Subtracting variable food and energy prices, the so-called core CPI rose 0.6% against an estimate of 0.4%. Annual core inflation reached its highest level since August 1991 at 4.6%, compared to the 4% expected.
Fuel prices rose 12.3% for the month as part of a 59.1% increase from last year. Energy prices overall rose 4.8% in October and rose 30% for the 12-month period.
President Biden acknowledged that the numbers were high and that his administration would work to find solution the unsettling aspects of the inflation on the people.
US stocks
Stocks in the US pulled back after a record October consumer price reading, causing an increase in bond yields.
The Dow Jones Industrial Average closed at 36,079.94, down 240 points, or 0.7%. The S&P500 fell 0.8% to 4,646.71. The tech-heavy Nasdaq Composite closed at 15,662.71, down nearly 1.7%.
The 10-year Treasury yield, which has been on a downward trend in recent weeks, rose by about 11 basis points on Wednesday after the CPI reading. Weak auctions on 30-year bonds on Wednesday afternoon fueled the rise.
As Treasury yields rose, investors abandoned hi-tech stocks, turned to bank stocks, and sought shelter in gold or Bitcoin.
Taiwan tension
China's foreign ministry said on Wednesday that a US congressional delegation's visit to Taiwan violates the 'One China' policy and that the US should immediately cease all official interactions with Taiwan.
Wang Wenbin, spokesperson for the Chinese foreign ministry, said at a daily media briefing that "collectively collaborating with the pro-independence forces is a dangerous game" in Taiwan.
