Higher inflation & higher rates spreading

<p>Kia ora,</p><p>Welcome to Thursday’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 inflation's pressure and higher interest rates are spreading around the world.</p><p>But first, American <a href="https://tradingeconomics.com/united-states/redbook-index" target="_blank"><strong>retail sales</strong></a> held their high levels last week, up more than +15% from year-ago levels although base year effects embellish that. All the same, it is a good positive result and better than anticipated.</p><p>US <a href="http://www.freddiemac.com/pmms/" target="_blank"><strong>mortgage rates</strong></a> are now all turning noticeably higher with their benchmark 30yr fixed almost back to levels last seen two years ago. But while they are in a <a href="https://tradingeconomics.com/united-states/mba-mortgage-market-index" target="_blank"><strong>longish term shift lower</strong></a> for mortgage applications, this latest jump in rates hasn't hurt <a href="https://www.mba.org/2022-press-releases/january/mortgage-applications-increase-in-latest-mba-weekly-survey-x288554" target="_blank"><strong>recent application levels</strong></a>.</p><p><a href="https://www150.statcan.gc.ca/n1/daily-quotidien/220119/dq220119a-eng.htm?HPA=1" target="_blank"><strong>Canada’s headline inflation rate</strong></a> rose faster to 4.8% in December from 4.7% in November and October, matching market expectations. Their 'core' inflation rate rose quicker. That was the steepest inflation rate in 30 years, amid ongoing supply disruptions and low base year effects.</p><p>China is drafting nationwide rules to make it easier for property developers there to access funds from sales still held in escrow accounts in its latest move <a href="https://newslink.reuters.com/click/26412124.96004/aHR0cHM6Ly93d3cucmV1dGVycy5jb20vd29ybGQvY2hpbmEvZXhjbHVzaXZlLWNoaW5hLWRyYWZ0cy1ydWxlcy1lYXNlLXByb3BlcnR5LWRldmVsb3