US Consumers Spent More on Everyday Staples and Autos in October
According to the Commerce Department’s data released on Wednesday, October retail sales increased by 1.3% compared to September. October’s economy data included spending on clothing, wine, ottomans, and meals at restaurants. September data showed no changes from the month prior.
Auto dealers, furniture shops, grocery stores, and gas stations all saw increased consumer sales. In recent months, retail sales have increased due to higher prices and rising interest rates. These make larger purchases more costly. October retail spending increased due to higher gasoline costs and greater automobile sales, reflecting improved supply chains.
UK Consumer Prices Rose Again in October
In October, the annual inflation rate in the United Kingdom reached a 41-year high, despite a new government price ceiling on energy and a potential recession. Rising energy costs drove up prices.
Since Russia invaded Ukraine and Moscow’s decision to cut natural-gas supplies to Europe, energy costs have climbed. This happened to undermine Western backing for Kyiv. Even as the economy slowed somewhat in the third quarter, rising prices have hit people and firms. Economic expansion has nevertheless come to a halt.
With German consumer prices climbing, inflation in other European countries has also increased. European governments are giving expensive assistance to households to avoid widespread hardship and maintain popular support for Ukraine via sanctioning Russia.
China’s Inflation Outlook Entails the Risk of Further Inflation
Meanwhile, the latest economic figures from China revealed a contraction in retail sales for the first time since May, indicating that the economy is slowing faster than expected. With the spread of Covid outbreaks accelerating at its fastest pace since April, Beijing is coming under increasing pressure to provide more assistance, with major modifications to Covid controls and adopting rescue procedures for the real estate sector.
China’s inflation rose steadily until October when it began to moderate as restrictions on Covid outbreaks continued to weigh on demand. While inflation remained relatively low compared to other large economies, the nation has been spared a global wave of monetary tightening.