In the United States, inflation picked up modestly in September, with the Consumer Price Index (CPI) rising about 3% year over year and 0.3% month‑to‑month. The increase was driven mainly by food and utility prices — for instance, food‑at‑home costs rose significantly, and electricity and natural gas costs jumped. At the same time, core inflation (which excludes volatile food and energy prices) rose 3% annually, while services inflation was relatively restrained — suggesting that underlying wage and labor‑market pressures may be easing.
In China, growth is decelerating: real GDP grew 4.8% year‑over‑year in the third quarter, the slowest pace in a year, with investment in property down nearly 14% and retail sales growing just 3%. The weakness in property and consumer demand is acting as a drag on the economy, even though manufacturing output was still reasonably strong. In the United Kingdom, inflation is starting to ease: the annual rise in consumer prices stabilized around 3.8%, and core inflation (excluding food and energy) fell to its lowest level since early 2024.
Source : https://www.deloitte.com/us/en/insights/topics/economy/global-economic-outlook/weekly-update.html?utm
4 comments:
In class, we discussed how the tariffs imposed by the Trump administration on imported beef, mostly from Brazil, were primarily focused on supporting cattle farmers within the United States. However, due to the now shortage and increased demand within the states, the price of beef has skyrocketed. The average consumer can't afford to purchase beef, and prices are inflated. What if the government imposed a price ceiling for beef? If the price of beef increases, this could be seen as an effective strategy to reduce greenhouse gas emissions by reducing beef consumption.
It’s interesting to see how inflation trends are shifting across countries. In the U.S., prices for essentials like food and utilities are still rising, even though core inflation seems stable, which a sign that policy tightening might be working but consumers are still feeling it. China’s slowing growth and weak property market show the other side of the global story, while the U.K.’s easing inflation could hint at what’s next if price pressures continue to cool.
Interesting point, inflation rates look like they are trending across the world. The U.S. seems to only having price increases driven by foods and utilities and China's is due to consumer demand and weak property.
It’s interesting to see how inflation trends are diverging around the world this week. I wonder whether the modest rise in U.S. food and utility prices will significantly impact consumers, or if slowing growth in China and easing inflation in the U.K. might balance global economic pressures.
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