Cost of living: Shares jump as US inflation cools

Share prices have risen as investors welcomed official figures that show the cost of living in the US increased at a slower-than-expected pace last month.

Shares soared in the US and in Asia as traders reacted to the data, and UK and European stock markets also rose on Friday morning.

The US consumer price index rose by 7.7% in October from a year earlier, according to the Labor Department.

That is the smallest annual increase since the start of the year.

The figure, which is down from 8.2% the previous month, means the US central bank may ease its aggressive approach to raising interest rates to tackle inflation.

On Friday Hong Kong’s Hang Seng index jumped by 7.7%, while the Nikkei in Japan ended the day 3% higher and South Korea’s Kospi gained 3.4%.

The Hang Seng was also boosted after Chinese state media reported that Covid-19 travel measures will be eased.

That came after the benchmark S&P 500 index in New York rose by more than 5.5%, while the Dow Jones Industrial Average…

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This article was written by and originally published on www.bbc.co.uk