top of page

UK Inflation 41 Year High of 11.1%

By Wong Kon How

Inflation is not over yet. Recent rally - Could this be a bear retracement or the market has bottomed?

Europe’s numbers do not look good at all. In U.K. the annual rate of inflation rose to 11.1% in October, up from 10.1% in the 12 months to September. The sharp increase in living costs was caused by rising gas and electricity prices, despite a government energy price guarantee, which caps energy bills at £2,500 ($2,970) for the typical household. Food price inflation rose to 16.4%.

All eyes are now turning to the U.S. November CPI number in the second week on 13th December. October CPI was 7.7% lower than expectation at 8.2%, this number caused Dow Jones to gain more than 1,000 points overnight, the largest gain in two years.

What do you think, could this be a bear retracement or market has bottomed?

The real danger will be with the continuous rise in interest rates and yet the dollar starts weakening, just like the pound. Not happening now, I am keeping watch on this closely. However, it is not all bad news, we can invest differently…

5 views0 comments


bottom of page