Morning Economic Report 5-21-25

Economy update

Consumer prices rose faster than expected in April in the UK. Inflation surged 3.5%, up from 2.6% in March. The main culprit is the jump in airfares over Easter. Japanese shipments to the US fell in April, a clear sign of the impact of US tariffs. Total Japanese exports increased by 2%, in line with forecast. Investors remain anxious about the US credit downgrade by Moody’s last week. Proposed US tax cuts are also seen to lead to rising debt pile. Equities are sluggish this morning, the dollar is under pressure, its index dipped below 100 and gold is edging higher.