Powell and Gold between Inflation and Global Slowdown

Tuesday, November 20, 2018
By Paul Martin

By: Arkadiusz Sieron
GoldSeek.com
Tuesday, 20 November 2018

Powell is apparently between a rock and a hard place. Inflation surged, while the global economy slowed down. What will he do? And how will gold react?

Inflation Jumps in October

The consumer price index climbed 0.3 percent last month, after rising 0.1 percent in September, according to the U.S. Bureau of Labor Statistics. It was the biggest rise since January, and it was mainly caused by an impressive surge in the fuel oil (+3.7 percent) and gasoline indices (+3 percent). However, the core CPI, which excludes food and energy, also rose, advancing 0.2 percent in October, following a 0.1-percent increase in September.

Over the last 12 months, the consumer prices jumped 2.5 percent, compared to 2.3 percent increase in September. The rebound was mainly caused by a notably bigger increase in energy prices. Hence, the index for all items less food and energy climbed 2.2 percent, the same as last month, as the next chart shows.

Chart 1: CPI (green line, annual change in %) and core CPI (red line, annual change in %) over the last five years.

The Rest…HERE

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