Cost of living: Shares jump in US and Asia as inflation cools

Share prices person jumped arsenic investors welcomed authoritative figures that amusement the outgo of surviving successful the US accrued astatine a slower than expected gait past month.

The US user terms scale roseate by 7.7% successful October from a twelvemonth earlier, according to the Labor Department.

That is the smallest yearly summation since the commencement of the twelvemonth and down from 8.2% the erstwhile month.

It means the US cardinal slope whitethorn easiness its assertive attack to raising involvement rates to tackle inflation.

On Thursday successful New York the benchmark S&P 500 scale roseate by much than 5.5%, portion the Dow Jones Industrial Average gained 3.7%. At the aforesaid clip the technology-heavy Nasdaq soared by 7.35%.

On Friday Hong Kong's Hang Seng scale jumped by astir 6%, portion the Nikkei successful Japan and South Korea's Kospi were 3% higher.

Shares successful US exertion companies saw immoderate the strongest gains with Amazon up by implicit 12%, portion Apple and Microsoft much than 8%.

Meanwhile the US dollar, which has jumped successful worth this year, weakened against large currencies including the lb and the yen.

Earlier this period the US Federal Reserve raised its cardinal involvement complaint to a caller 14-year high.

The determination took the cardinal bank's benchmark lending complaint to 3.75% - 4%, the highest since January 2008.

Also this month, the Bank of England lifted involvement rates to 3% from 2.25%, the biggest leap since 1989, and warned that the UK is facing its longest recession since records began.

A recession is defined arsenic erstwhile a country's system shrinks for 2 three-month periods - oregon quarters - successful a row.

Higher involvement rates marque it little apt that radical volition walk connected large summons items, specified arsenic homes, cars oregon expanding their businesses. That autumn successful request is, successful turn, expected to curb terms increases.

Food and vigor prices person jumped, successful portion due to the fact that of the Ukraine war, which has near galore households astir the satellite facing hardship and started to resistance connected the planetary economy.

But immoderate economists are acrophobic that higher rates could besides trigger slowdown successful the planetary economy.