Charting the Global Economy: Inflation Winds Keep Blowing Strong

Inflation continues to rattle the global economy, forcing monetary authorities to strengthen efforts to extinguish it.

Consumer prices in the US increased last month by more than forecast, which will likely prod the Federal Reserve to raise interest rates by 75 basis points for a third-straight meeting this coming week.

UK inflation remained close to a four-decade high and the economy barely expanded as industrial production and construction weakened. In Argentina, inflation shot up the most in three decades and prompted the central bank to raise its benchmark rate to a whopping 75% in an effort to prop up its currency.

Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:


US consumer prices were resurgent last month, dashing hopes of a nascent slowdown and likely assuring another historically large interest-rate hike from the Fed. Against a backdrop of robust labor market conditions that’s driven up wages, odds favor the central bank becoming that much more aggressive to take more wind out of the economy’s sails with the goal of bringing inflation down.

President Joe Biden hailed a tentative railway labor agreement, one that he helped broker and that averted an economically perilous nationwide work stoppage less than two months ahead of the November midterm elections. The stoppage would have been the largest of its kind since 1992 and threatened to cost the world’s biggest economy more than $2 billion a day.