Inflation Jumps Back Over 10% in the UK

Consumer prices were up more than expected with year-over-year inflation levels back up 10.0%, according to the UK’s Office for National Statistics September report.

• Y-O-Y: The Consumer Prices Index rose by 10.1% in the 12 months to September 2022, this is up from 9.9% in August and higher than the 10.0% economists were projecting.

• M-O-M: On a monthly basis, prices rose by 0.4% in September, this is down from the 0.5% increase reported in August.

Food Prices. Like in the US, food prices have seen the biggest increases with prices up 14.6% in September followed by Transport(+10.9%) and furniture & household goods (10.8%).

Markets React. The news was not devastating to European markets as FTSE was only down a few points half way through the trading day. The DAX was actually in positive territory up 50 points to 12,797.

• Asia was mostly down with the Hong Kong’s market down 2.38% and Shanghai was down 1.20%. The Nikkei was the outlier ending the day in the green with a 101 point increase to 27,257.

U.S. futures are down slightly with the Nasdaq off about 0.8% and the S&P down 0.5%. The Dow, meanwhile, mostly unchanged ahead of the open.