Economics

October inflation figures showed a slight reacceleration on both sides of the Atlantic. In the US the rate rose from 2.4% in September to 2.6% and in Europe from 1.7% to 2%. In the UK there was a relatively large jump from 1.7% to 2,3%. In Ireland the CPI rose by 0.7%, - the same as in September, but the inflation as measured by the EU's HICP moved up marginally from nil to 0.1%. Most opinion is that these increases are temporary glitches in the general downward trend in the past year. Consequently, further reductions in Interest rates seem likely to go ahead as previously expected. In Europe and the UK sluggish activity is a predominant consideration. In the US where the economy is running hit, the issue should be more in the balance, but opinion there too, expects a reduction in interest rates before the end of the year.