The British CPI edged up last month from 3.1% to 3.2%. The US CPI is released on the 17th of this week. Last months showed the US inflation rate at 1.1%. Expectations for the US show a .4% jump, only .1% excluding food and energy.
What is driving the slightly higher British index? Fuel, Alcohol and Tobacco, Cost of Financial Services, and Games. Food costs were lower balancing out the upward pressure on other things.
Does this show a switch in the British diet from demand for actual food to just beer and cigarettes? Is this a comment on the culinary skills of Britain? Or, is it just better to try and kill yourself slowly with driving to and from the pub, drinking, and potentially getting cancer from smoking? Better to do that than face the financial mess in Britain, Europe and the United States!
In the EU, the inflation rate was 2.2%. Overnight, Asia reported higher than expected inflation numbers. The South Koreans hiked rates and there are fears that the Chinese may aggressively try and stem demand by raising their rates again.
Looks like the number one US export to Asia is inflation!