US inflation rises as rate expectations shift

State Street Investment Management’s Simona Mocuta, Amy Le and Krishna Bhimavarapu assess how renewed US inflation pressure is shifting rate expectations alongside mixed signals from the UK and Australia.

• US headline inflation rose to 3.7% year-on-year, while stronger producer and import prices reinforced concerns that disinflation may be stalling.
• UK growth remained positive, but elevated energy costs, inflation and restrictive fiscal policy could weaken momentum into year-end.
• Australia’s softer labour data is a warning sign rather than a clear downturn, leaving the case for further RBA tightening open.

Explore the full report for State Street’s latest global macro and policy outlook.