Here is a summary of the news on economic performance and inflation from around the world today.

Here is a summary of the news on economic performance and inflation from around the world today.

1. UK

• After hitting a 41-year high in October, inflation fell more than expected in November
• Inflation dropped to 10.7% last month from 11.1% in October, according to the ONS
• Economists had previously predicted a 10.9% fall
• The Bank of England’s target rate is still only 2%
• Interest rates stand at 3% but Reuters notes that economists predict a possibly rise on Thursday to 3.5%

2. Eurozone

• Consumer prices in 19 countries sharing the euro grew by 10% in November, below the expected 10.4%
• The European Central Bank (ECB) expects inflation to remain above the 2% target for the next three years
• The ECB is also predicted to raise interests rates on Thursday for a fourth consecutive time 
• Economists for Reuters expect the ECB to raise its deposit rate by 50 basis points to 2% on Thursday, then 2.5% in March 2023 and 2.75% by mid 2023

3. Russia

• Russia’s economy shrank 3.7% year-on-year in Q3 of 2022
• This is slightly better than the previously reported 4%
• After growing 3.5% in Q1, the Russian economy has tipped into recession with 4.1% and 3.7% contractions in Q2 and Q3 respectively
• Russia’s economy ministry forecasts GDP to fall 2.9% overall in 2022.
• The economic shrink is attributed to Russia’s ongoing war with Ukraine, Western sanctions and a drained workforce 

4. Asia

• South Korea’s consumer inflation slowed for a second month in September
• The CPI in South Korea rose 5.6% in September from the same month a year ago, below the forecast of 5.7%
• Economists said the latest data suggests inflation was at or past its peak but the central bank is expected to stick to its current stance due to a weak won and aggressive US monetary policy
• The Asian Development Bank lowered its economic growth forecasts for the region, predicting 4.2%, down from a 4.3% prediction in September 
• The ADB lowered its 2022 growth forecast for China to 3% down from 3.3%
• In today’s final hour of trade, the Hang Seng index rose 0.6%, the Shenzhen Component fell 0.2% and the Shanghai Composite was down 0.1%
• In Japan, the Nikkei 225 gained 0.72% and the yen slightly strengthened to 135.38 against the dollar
• In India, the annual retail inflation rose 5.88% in November, below 6% for the first time this year

5. The US

• US consumer prices rose less than expected for a second month despite the decrease in fuel costs in November
• The CPI increased 0.1% in November after a 0.4% rise in October, below the Reuters economist forecast of 0.3%
• The US subsequently saw the smallest annual increase in inflation in nearly a year
• The Federal Reserve is expected to lift its benchmark overnight interest rate by 50 basis points, in a consecutive straight 75-basis-point increases
• Gasoline prices dropped 2% but food prices rose 0.5%
• In the 12 months through to November, CPI has overall climbed 7.1%, peaking at 9.1% in June
• Inflation remains above the Federal Reserve’s 2% target

(Sources: Reuters, CNBC)