U.S. Inflation Data Shakes Markets by Investing.com

Investing.com – Inflation data was released a few moments ago, with a monthly rate of 0.6%, while the estimate was 0.5%. However, it rose to 6.7% and is expected to settle at 6.6%.

As for the monthly, it recorded an increase to 0.7%, and the estimate was to reach 0.6%. As for the annual, it registered an increase to 8.3%, and the estimate was to reach 8.2%.

The economic community is looking at this data with great interest, as inflation data influences the squeeze and its proximity. Fed members have been calling for two days to start tightening and cutting asset purchases before the end of the year to control inflation, and Fed member Kaplan said although the economy America can begin to tighten its monetary policies, because the economy produces a lot of jobs.

The European Central Bank decided yesterday to raise inflation expectations. Policymakers explained that the change was a ‘reset’ rather than a ‘decrease’ as the change was applied to the Pandemic Purchase Program (PEPP) and not the Asset Purchase Program (APP) .

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And it records in these moments 1798 dollars an ounce, an increase of 0.2%, while it records a dollar an ounce.

It is listed at $ 69.33 per barrel, an increase of 1.79%, while its price is set at $ 72.63 per barrel, an increase of 1.71%.

And {{942611 | the US index}} meanwhile recorded 92.39, down 0.1%, while it stood at 8.4078, down 0.26%.

Update 3:50 p.m. Riyadh time

Veteran economist Mohamed El-Erian commented on US inflation data, saying:

“More signs that inflation is brewing and it doesn’t appear to be confined to the United States of America. There are new signs that inflation is no longer temporary.”

With inflation rates high, it looks like the pressure will increase on the Fed to accelerate the announcement of a tightening before the end of this year, in order to control inflation. With indices rising and in light of yesterday’s ECB move and comments from Fed members, most economists expect Fed tightening, which will strengthen the dollar and affect gold , which is moving in the opposite direction.

It should be noted that he had just announced that he would raise interest rates for the fifth time in a row to 6.75%, after increasing it by 0.25%.

Fed member Meester commented on the results, saying she expects inflation to stay high this year and decline next year. Meester added that she sees upside risks to the inflation outlook.

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Gold is now at 1,794.09, down 0.04%, while the US registers 92.4, cutting losses but still down 0.08%.