Worries about US inflation might intensify next week.
Official figures could show that consumer prices rose by around 5 per cent in the past 12 months, the biggest increase since 2008. This won’t be all due to the rise in oil prices since last spring. The rate excluding food and energy could hit 3 per cent, its highest rate since the mid-1990s.
This is unlikely to elicit a swift response from the Fed. It will want to see that inflation is sustained and broad-based before raising rates, and so far it is unclear that this is the case: much of last month’s rise, for example, was due to a jump in used car prices.