Maura Mundi , CNN Written by
Global inflation jumped in October, after three months of deceleration, as the cost of gasoline, clothing and rent rose, according to data released Tuesday by the International Monetary Fund . The rise of 5.1 percent from a year earlier was the biggest in a year.
Greece and Albania reported double-digit inflation figures. Consumer prices in the eurozone rose 4.1 percent in October, the sixth consecutive monthly increase.
Nicolas J. Corner , senior economist with Lombard Street Research and IFR Markets, wrote in an investor note that the rise was likely also “reflecting firmer global commodity prices,” which accelerated recently, “mainly oil-linked prices.”
The IMF said inflation would rise another 1.8 percentage points over the coming year, but, due to slack in the economy, high unemployment and austerity, growth is not expected to accelerate significantly.
The IHS Markit Global Composite PMI — a broad-based gauge of manufacturing and services activity that also serves as a leading indicator of economic growth — hit 52.4 in November, a four-month high, although below the expansion-versus-contraction indicator’s average for the first 11 months of 2018.
Inflation is expected to rise further in the future as more countries implement fiscal reforms; previous monetary tightening could also lead to higher prices and a weaker exchange rate. An IMF report released this month added that the rising oil prices could dent domestic spending.