Data from the Office for National Statistics this morning showed that UK annual inflation rose to 3.2% in August, up from 2% in July and well above expectations. The 1.2% jump in CPI was the largest since records began in 1997. UK stocks are flat this morning, one hour into the trading day.
In contrast, CPI data in the US came in below estimates at 0.3% in August indicating that inflation pressure may be easing. Investors will be considering how this might play into the Federal Reserve’s next move.
Also in the mix is China’s latest retail sales data which shows growth at a much lower pace than expected in August fueling concerns of slowing global growth.
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