Inflation Pain, Latin American Rate Hikes, Inequality: Eco Day

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

• After U.S. prices climbed by the most in three decades, there’s even worse news ahead for households and policy makers: Inflation likely has further to rise before it peaks
• There’s a massive economic policy debate right now about whether inflation expectations really matter. But if you think they do -- even the tiniest bit -- then there’s one type of price increase that’s far more emotionally powerful than others
• Why inflation could accelerate the Fed’s taper timetable, according to Bloomberg Economics
• Mexico, Peru and Uruguay are forecast to raise their benchmark interest rates on Thursday in response to above-target inflation and gradually strengthening consumer demand
• The U.K. economy grew less than the Bank of England forecast, while consumer spending showed signs of weakening, leaving the chances of an interest-rate increase in December in the balance
• Euro-area inflation will slow sharply in 2023 as energy costs stabilize and the supply-chain disruptions that are currently stoking prices fade, according to the European Commission
• The European Central Bank could stop buying bonds as early as next September if inflation looks to have sustainably returned to the official target, Governing Council member Robert Holzmann said
• One of the most popular strategies for fighting climate change could come at the cost of even greater inequality in the world economy. The policy, known as carbon pricing, would impose a charge on businesses and consumers with the hope of curbing greenhouse gas emissions
• Young people around the world have found themselves shut out of the labor market -- and the consequences could linger for years to come
• Finally, check out this week’s Stephanomics podcast on what’s really causing labor shortages around the world

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