US INFLATION

Global markets are trying to pick up the pieces after a torrid Tuesday, following higherthan-expected US inflation. The US inflation rate eased slightly to 8.30% year-on-year in August from July’s high of 8.50%, but above expectations of 8.10%. The figure “nullified premature hopes for a ‘dovish pivot’ by the US Federal Reserve in the second quarter of next year, wrong-footing risk assets while reasserting king dollar’s dominance,” says

Han Tan, chief market analyst at Exinity

Group. “Markets have been jolted by the realisation that inflation could stay elevated for an extended period. There’s even now a 35% chance of being allocated to gargantuan 100-basis-point hike by the Fed next week.”