Global inflation pressures rise and rise

<p>Kia ora,</p><p>Welcome to Tuesday’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 US benchmark interest rates have risen sharply today with the UST 10yr reaching a 10 month high. The USD rose sharply too. And tech stocks took fright. The re-rating ahead of Thursday's US Fed meeting is getting a sharper focus as global inflationary impacts do not seem to be easing.</p><p>American <a href="https://www.newyorkfed.org/newsevents/news/research/2022/20220314" target="_blank"><strong>inflation expectations rose</strong></a> to 6.0% in February from 5.8% in January, back to its November 2021 record high. The increase was widespread across age, education, and income groups. The same survey revealed that year-ahead household spending growth expectations increased sharply to +6.4% from +5.5% in January, reaching a new series high (a data series that started in June 2013). This increase was also broad-based across age, income, and education groups.</p><p><a href="http://www.mofcom.gov.cn/article/xwfb/xwsjfzr/202203/20220303284927.shtml" target="_blank"><strong>Foreign direct investment</strong></a> into China is up a lot in February from a year ago, but the base was unusually low in 2021.</p><p>But <a href="https://www.scmp.com/economy/china-economy/article/3170416/chinas-coronavirus-lockdowns-could-trigger-shock-waves-across?module=lead_hero_story&pgtype=homepage" target="_blank"><strong>trouble is brewing in China</strong></a> as new hard pandemic lockdowns seem likely to trigger ‘shock waves’ across global supply chains, both worse and broader than last time. Observers are saying that another major port lockdown there could have a ‘phenomenal’ impact on global supply chains still recovering from two years of pandemic-related setbacks. Strict virus-containment efforts by local governments will weigh on cargo movement inside and out of China, and raise shipping