The global inflation tiger has been let out of the cage and is proving difficult to catch, scuppering bets from central bank wonks on price rises being temporary.
Soaring energy prices, compounded by supply chains buckling under the weight of a resurgence in global demand as economies emerge from the pandemic has driven up prices sharply.
A seismic recalibration in spending patterns toward buying goods has left firms struggling to ramp up production to cope with the onslaught of demand, fuelling global inflationary pressures.
Prices in America are 6.2 per cent higher than they were a year ago in October, the hottest inflation print since 1990, a year in which the third Back to the Future film roped in over $23m on release.
Even the so-called core US inflation measure, seen as providing a more accurate snapshot of price rises in the American economy, scaled to its highest level since 1991.
The fiery inflation clip sparked a backlash from economists targeting the US Federal Reserve’s narrative that price rises will prove to be transitory.
Andrew Hunter, senior US economist at Capital Economics, said: “The bottom line is that, while it remains difficult to predict how far or for how long the various “transitory” factors will boost inflation, there is increasing evidence that inflationary pressures are broadening out, underlining that inflation will remain elevated for much longer than Fed officials expect.”
Separate data published today showed factory gate prices in China are climbing at the fastest pace in over two and a half decades, fuelling concerns the world’s second largest economy could export roaring inflation across the globe.