Inflation in the richest economies accelerated to a 25-year high in November, driven mainly by the surge in energy prices during the month.
- Member countries of the Organisation for Economic Co-operation and Development recorded average inflation of 5.8% in November 2020, up from 1.2% the previous year. This is the highest level since May 1996.
- Energy prices ballooned by 28% during the month, up over 3 percentage points from October to hit the highest level in over three decades since June 1980. Food inflation climbed to 5.5% from 4.6%.
- Bundesbank President Joachim Nigel flagged that the public has “considerably less” money in their wallets, driving concerns over the decline in purchasing power moving forward.
Inflation has already surpassed the 2% target of the central banks in the United States, the Eurozone, and the United Kingdom.
ITOT is flat, EZU down 0.20%, and EWU up 0.12% premarket.
Source: Financial Times
