Inflation kicks up a gear

<p>Kia ora, </p><p>Welcome to Friday's Economy Watch where we follow the economic events and trends that affect 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 the chaos at the Kabul airport has cast a pall over markets today.</p><p>But elsewhere, positive economic news is generally being reported however. And Powell's Jackson Hole speech is close now.</p><p>Actual US <a href="https://www.dol.gov/sites/dolgov/files/OPA/newsreleases/ui-claims/20211563.pdf" target="_blank"><strong>jobless claims fell again last week</strong></a> to under +300,000, the first time it has been below that level since the start of the pandemic. (Seasonally-adjusted it is being reported as +353,000, an unchanged level.) That takes the actual number of people on these claims to just under 2.8 mln, also the lowest since the start of the pandemic.</p><p>The US also <a href="https://www.bea.gov/news/2021/gross-domestic-product-2nd-quarter-2021-second-estimate-corporate-profits-2nd-quarter" target="_blank"><strong>reported</strong></a> its second estimate of Q2 GDP and this has been revised higher to a +6.6% pa rate, and a slight rise above the initial estimate of +6.5%. The final Q1 rise was +6.3% pa. Estimates vary for what Q3 will bring, but <a href="https://www.atlantafed.org/-/media/documents/cqer/researchcq/gdpnow/RealGDPTrackingSlides.pdf" target="_blank"><strong>most see a +7% pa rise</strong></a>.</p><p>The latest regional Fed factory survey, this one from the Kansas City Fed, shows a solid expansion continuing in that district. Just like the other surveys, price movements remain very elevated with this one <a href="https://www.kansascityfed.org/documents/8291/2021_KCFederalReserveManSurvey_August.pdf"><strong>reporting</strong></a> that "prices received" rose to a survey high in August. However, at the same time, 20% of these firms noted that activity was falling away due to the impact of delta Covid.</p><p>The South Korean central bank <a href="https://ww