Central banks react to sticky inflation

<p>Kia ora,</p><p>Welcome to Friday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the international edition from Interest.co.nz.</p><p>And today we lead with news we again need to keep an eye on an outbreak of respiratory illness in China that has rapidly filled hospitals there.</p><p>But first, with both the US and Japan on holiday, data from other countries are getting a chance to shine through today. But holiday season retail sales are underway and observers around the world will be looking at the <a href="https://www.nytimes.com/2023/11/23/business/economy/black-friday-shopping.html" target="_blank"><strong>American demand impulse</strong></a>. Any weakness will echo worldwide. Strength will have similar echoes.</p><p>Taiwanese <a href="https://www.moea.gov.tw/Mns/dos/bulletin/Bulletin.aspx?kind=8&html=1&menu_id=6727&bull_id=15957" target="_blank"><strong>retail sales</strong></a> came in +5.1% higher in October than a year ago, although the expansion was slightly less than in the prior month. And after a year of sharpish declines, Taiwan's <a href="https://www.moea.gov.tw/Mns/dos/bulletin/Bulletin.aspx?kind=6&html=1&menu_id=6725&bull_id=15961" target="_blank"><strong>industrial production</strong></a> is almost back to year-ago levels. It is up +20% from its low point in April. Taiwan's inflation is running at 3.0%.</p><p>Singapore <a href="https://www.singstat.gov.sg/-/media/files/news/cpioct23.ashx" target="_blank"><strong>reported</strong></a> October inflation and that rose to 4.7%, a sharpish and unexpected increase from the September 4.1%. It is being pushed up by transport and healthcare costs.</p><p>As expected, Indonesia kept its <a href="https://www.bi.go.id/en/publikasi/ruang-media/news-release/Pages/sp_2531723.aspx" target="_blank"><strong>official interest rate</strong></a> benchmark at 6% overnight; <a href="https://www.bps.go.id/indicator/3/1708/1/inflasi-90-kota-umum-.html" target="_blank"><strong>inflation