Rumors of the death of inflation in the world have been somewhat exaggerated. Canadian May was published yesterday. inflation increased from 2.7 percent to 2.9 percent, although markets had expected a slowdown to 2.6 percent. In the month alone, prices rose 0.6 percent, while the market expected only 0.3 percent.
Prices rose the most among interest-sensitive categories such as machinery and entertainment. Prior to the news of the unexpectedly significant price increase, markets were expecting the Canadian central bank to cut interest rates for the second time this year next month, but the next rate cut is now not expected until the fall.
Prices are also rising rapidly in Australia. In May, prices rose to 4 percent. from 3.6 percent in April, economists expected 3.8 percent. Overall, inflation in the country recovered this year from the bottom reached at the beginning of the year at 3.4 percent. Due to significant price pressure, markets see the possibility that interest rates (currently 4.35%) may be increased further in the coming months.
European stocks fell yesterday, with the STOXX 600 down 0.3 percent. Before tomorrow's Riksbank interest rate decision, Swedish shares fell the most (-1.3%). At the last meeting, the country's central bank reduced interest rates by 25 basis points to 3.75%, this time the market does not expect any changes, and the next reduction is expected in August. After yesterday's positive US trading session (S&P 500 +0.4 percent), European shares should rise, futures indicate about 0.5 percent. increase.
