World divides into a fast-track and slow-track set

<p>Kia ora,</p><p>Welcome to Thursday's Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news investor risk sentiment continues to improve as the prospect for stronger interest rate rises.</p><p>More inflation data was reported overnight but it is clear there are two global tracks emerging, depending on the state of the economic recovery.</p><p>Canadian inflation has been <a href="https://www150.statcan.gc.ca/n1/daily-quotidien/211020/dq211020a-eng.htm?HPA=1"><strong>reported</strong></a> at 4.4% and slightly higher than expected. Core inflation is up to 3.7% and also higher than expected. Inflation is running at an 18 year high in Canada now.</p><p>US CPI inflation has already been <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank"><strong>reported</strong></a> at 5.4%.</p><p>They join the EU where inflation was <a href="https://ec.europa.eu/eurostat/documents/2995521/11563327/2-20102021-AP-EN.pdf/e4d74a06-e0e6-b9eb-ed56-094eccd4109c?t=1634718508016" target="_blank"><strong>reported</strong></a> at 3.4%, as expected and above August levels. It was held up by Germany (+4.1%) and Spain (+4.0%), and restrained by France (+2.7%) and Italy (+2.9%).</p><p>India <a href="http://mospi.nic.in/sites/default/files/press_release/CPI_PR_12102021.pdf" target="_blank"><strong>reported</strong></a> almost 4.4%.</p><p>Australia has <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release" target="_blank"><strong>reported</strong></a> 3.8%, and New Zealand of course <a href="https://www.stats.govt.nz/information-releases/consumers-price-index-september-2021-quarter" target="_blank"><strong>surprised</strong></a> with its 4.9% leap.</p><p>But not all large economies are getting high levels of price rises at the consumer level - just those where economic activity is expanding at healthy levels.