U.S. consumer price inflation races to a 40-year high
Indices in the United States were marginally higher on Wednesday, as markets reacted to the news that consumer prices rose in December.
According to data released by the Labor Department, its consumer price index rose by 0.5% last month, after climbing by 0.8% in November.
This rise saw the annual rate of inflation surge to 7.0%, which was the largest annualized rate since 1982.
Many now expect the Fed to push forward with hiking rates in March, in order to help ease current inflationary pressures.
As of writing, the Dow Jones was 0.04% higher, with the S&P 500 up 0.23%, and the NASDAQ in the green by 0.31%.
GBPUSD hits highest since November, as Boris apologizes to the nation
GBPUSD was trading higher during today’s session, as British Prime Minister Boris Johnson admitted to attending a lockdown party at 10 Downing in May of 2020.
After months of speculation on whether or not he had attended, many were pressuring the PM to resign, after breaking the rules he had implemented.
|💡 In an address to parliament Johnson stated that:|
“I know the rage they feel with me over the government I lead when they think that in Downing Street itself the rules are not being properly followed by the people who make the rules”.
Cable climbed to an intraday high of 1.3703 on the news, which was its highest level since November 3rd.
London’s FTSE 100 also finished the session in the green, closing 0.81% higher.
Oil prices rally to 2-month high
Also trading higher on Wednesday were oil prices, which climbed to their highest level in the past 2-months.
Oil prices have been on the up in recent weeks, in the aftermath of January’s OPEC+ meeting, where the cartel agreed to increase output in February.
Despite deciding to raise production by an additional 400,000 bpd starting next month, oil producers still currently suppress around 3 million barrels per day, from pre-covid levels.
Prices had fallen to as low as $62 per barrel in November, as markets were nervous about the Omicron variant, however as the threat of this has fallen, prices have surged.
As of writing, WTI crude was trading at $82.46.
“Short-term volatility is greatest at turning points and diminishes as a trend becomes established.”– George Soros