Acting on Oil Prices, Mexico Rate Path, Inflation Gap: Eco Day

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Welcome to Friday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• The White House is debating whether to act immediately to try to lower U.S. energy prices or hold off on dramatic measures in the hope markets settle, as President Joe Biden’s concern about inflation runs up against climate, trade and foreign policy considerations
• Democrats’ plan to undo President Donald Trump’s $10,000 cap on the state and local tax deduction is likely to end up enshrining looser restrictions on the popular and politically important write-off for the foreseeable future
• Chile’s old guard is counting on the free market to save the economy
• Mexico’s central bank upcoming monetary policy decisions will be data driven and depend on any additional price shocks, Governor Alejandro Diaz de Leon said, signaling that policy makers aren’t committed to an established path for interest rates
• Inflation is soaring across the euro area, but it’s also diverging by the most in years in a further complication for the European Central Bank’s ongoing pandemic stimulus
• Driving instructors, prison officers and fork-lift truck drivers were in increasing demand in the U.K. at the start of November as companies continued to struggle to fill vacancies
• China’s activity data likely remained soft into the fourth quarter, while averting a further slowdown, according to Bloomberg Economics
• Pricier soy sauce in underscoring the inflationary hit to Japan’s households
  • Japan’s government plans to compile an economic stimulus package of more than 40 trillion yen ($350 billion) in fiscal measures, according to the Nikkei newspaper
• Finally, here’s why economists underestimated the pace and persistence of U.S. inflation

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