Recovery Delayed As Inflation Strikes Global Equities

The value of the British pound decreased against the dollar, reaching lows last seen in 1985. This downward pressure was caused by worries about an impending recession as well as the possibility that the Bank of England increasing interest rates. As price pressure from raw materials and currency weakening widened, Japan's core consumer inflation accelerated to 2.8 per cent in August, reaching its strongest annual pace in over eight years and exceeding the central bank's 2 per cent target for a fifth straight month.

As concerns about inflation increased, global stocks encountered an abrupt decline with the S&P 500 index experiencing the biggest weekly decline since mid-June