UK Inflation Hotter Than Expected; BOJ Also Hawkish
UK September CPI came in at 3.5% YoY (above 3.4% est.), with services at 3.7% and PPI input surging 8.3% YoY — pipeline pressure is building. Simultaneously, BOJ's Himino flagged upside inflation risks and called AI a driver of Japanese investment.
What we know
A barrage of UK data from an account on X showed CPI YoY at 3.5% vs prior 3.1%, services CPI at 3.7%, core at 2.8%, and PPI input at an alarming 8.3% YoY vs 6.1% prior — suggesting pipeline inflation is far from cooling. Public Sector Net Borrowing hit £24.5B vs £18.3B prior. Separately, the UK approved the Jackdaw gas field and launched a £2B wealth fund. On the BOJ side, Deputy Governor Himino delivered a stream of hawkish comments — inflation approaching 2%, upside risks flagged, and notably linked AI demand to rising Japanese investment and exports. Japan's 2Y JGB yield rose to 1.90%.
How the story developed
UK September CPI came in at 3.5% YoY (above 3.4% est.), with services at 3.7% and PPI input surging 8.3% YoY — pipeline pressure is building. Simultaneously, BOJ's Himino flagged upside inflation risks and called AI a driver of Japanese investment.
Ken Griffin called AI 'almost certainly a bubble'; Chamath responded that ~70-75% of all AI revenue comes from VC-backed companies spending investor capital — a circular economy. Meanwhile, AI is hitting real capability milestones.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.