Inflation data shocks markets

Inflation data shocks markets 150 150 Realm

UK and European markets are lower this morning after a sell-off in the US over inflation fears. The US Federal Reserve has long said that any price rises will be temporary but investors fear that increasing pressure will prompt the Fed to tighten policy at an earlier date than has been expected.

Data released yesterday showed that the Consumer Price Index spiked 4.2% from a year ago. US inflation is now accelerating at its fastest pace since 2008. Latest data also showed that inflation in Germany and France is also on the rise.


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