US consumer price inflation eased more than expected in November. The increase in US consumer prices eased again in November, rising at their slowest pace since last December, the US Labour Department reported Tuesday. The Consumer Price Index (CPI) was up by 0.1 percent in November compared to October and by 7.1 percent from the same month last year. Both readings were below economists’ forecasts. The year-over-year rate fell for the fifth consecutive month, down from the more than 40-year peak of 9.1 percent in June and was the smallest gain since last December.  The “core” CPI, which leaves out volatile items such as food and energy, increased by 0.2 percent for the month and by six percent annually, both of which were also better than forecasts. The monthly uptick in consumer prices was largely due to a continued increases in the prices for shelter, which climbed by 0.6 percent in November following a 0.8 percent increase in October.

UK unemployment rate climbs amid recession worries Britain's unemployment rate rose for a second consecutive month and there were other signs of a cooling labour market in data published today, including an increase in older people saying they were looking for work. Figures published by the Office for National Statistics show that in the three months ended October 2022, the UK unemployment rate was 3.7 percent, up from 3.6 percent in the period of May to July. The employment rate was 75.6 percent, up from 75.5 percent in the previous period. The employment rate was 76.5 percent in February 2020, just before the Covid-19 pandemic forced a shut-down of the global economy. 

German economic confidence recovers on lower inflation expectations. German investor sentiment continued to recover in December, reaching its highest level since the Russian invasion of Ukraine, as inflation expectations cooled and the country has so far avoided an acute shortage in energy supplies. The ZEW institute’s measure of the mood among investor climbed to -36.7 in November from -59.2 the previous month, exceeding economists’ expectation. But the reading came in below its long-term average in anticipation of a recession. Commenting on the data, the ZEW Institute said that the rising sentiment was related above all to the hope that inflation rates will fall soon. "In this case, policymakers would not have to hit the brakes on monetary policy as hard and/or for as long as feared". 

China retail rales plunge in November on covid woes. China reported retail sales data for November that missed expectations across the board as widespread covid controls weighed on growth. Retail sales fell by 5.9 percent year-on-year in November from a 0.5 percent y-o-y drop in October, according to data made public by China’s National Bureau of Statistics (NBS) on Thursday. Retail sales was the worst-performing indicator in November; as the government only started easing covid measures on 7 December. With the implementation of optimized covid response and pro-consumption measures, China's retail sales are expected to steadily recover, the NBS said in a statement.

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