Kaohoon Morning Brief – 14 October 2021

1) U.S. inflation rate in September rises to 13-year high of 5.4%

U.S. Consumer Prices in September rose to 5.4% YoY, compared to 5.3% estimated by economists. The inflation rate rose to a 13-year high as rising costs for food and shelter pushed the rate higher amid a fast recovery in demand after the Covid-19 crisis that supply chains could not keep up.

 

2) Fed could begin tapering by mid-November

The Federal Reserve could begin a gradual tapering process by mid-November, according to minutes from the September meeting, released Wednesday. The officials expressed concerns on the U.S. inflation, saying that it could last longer than what they had anticipated earlier.

 

3) Singapore Central Bank tighten policy rate after 6.5% GDP growth in 3Q

Singapore’s central bank, the Monetary Authority of Singapore, raised slightly the slope of its currency band, the Singapore dollar nominal effective exchange rate, after the report of 3Q GDP that grew 6.5% YoY. The move by the Singapore central bank will allow the Singapore dollar to appreciate against a basket of currencies within an undisclosed band.

 

4) China factory-gate price rises at a fastest pace

China Consumer Prices Index in September rose 0.7% YoY, slightly below a 0.9% increase forecast by economists. Beijing has set a 2021 CPI growth target of around 3%, compared with around 3.5% last year. Meanwhile, the producer price index in September rose by 10.7%, increased from a 9.5% rise in August. The 10.7% rise is the highest reading since the start of the NBS database in 1996.