Food prices rise to extreme levels

<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>Today we lead with news that rising inflation is due to more than just oil prices - food prices are now reaching <a href="https://asia.nikkei.com/Business/Markets/Commodities/Extreme-food-prices-slam-inflation-ridden-Turkey-and-Sri-Lanka" target="_blank"><strong>extreme levels</strong></a>.</p><p>But first, US <a href="https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/ui-claims/20212092.pdf" target="_blank"><strong>jobless claims</strong></a> came in low again reporting only +212,000 new claimants with the prior week's low level revised lower. Now <a href="https://fred.stlouisfed.org/series/CCNSA" target="_blank"><strong>only 1.56 mln people</strong></a> are on these benefits. (This is the actual number; most reports focus on the seasonally adjusted level which is at 1.96 mln, so it may take a while for that statistical twist to work through.)</p><p>Supporting these very low rates are the <a href="https://www.challengergray.com/blog/no-21-job-cuts-fall-to-lowest-monthly-total-since-may-1993-14875-cuts-recorded/" target="_blank"><strong>data for layoffs</strong></a> which came in at only 14,875 in November, the lowest monthly total since May 1993.</p><p>All eyes are now on tomorrow's non-farm payrolls report where a rise of +550,000 is expected in November. There will be interest too in the tracking of overall hours being worked.</p><p>Meanwhile, the threat of another Federal government shutdown seems to have eased with a bipartisan deal agreed, one that still needs to pass votes in both Congressional bodies. It should pass but the Trump desire to cause havoc plays hard in these chambers still.</p><p><a href="https://www.esri.cao.go.jp/en/stat/shouhi/shouhi-e.html" target="_blank"><strong>Japanese consumer confidence</strong></a> remained unchanged but still quite depressed in November. It