Stocks up, dollar down; US inflation data surges as forecast

NEW YORK: World stocks rose on Wednesday while U.S. Treasury yields and the dollar fell, after the latest U.S. inflation data showed price pressures surging but within expectations, apparently suggesting the Federal Reserve will not have to hike interest rates too aggressively.
Oil prices hit two-month highs, lifted by tight supply and easing concerns over the spread of the Omicron coronavirus variant.
Data showed the U.S. consumer price index leaping a whopping 7% in the 12 months through December, the biggest annual increase since June 1982. But it was within forecasts, which appeared to reassure investors.
“Today’s inflation report continued to reinforce the theme that gaudy price gains are not standing in the way of demand,” said Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income and Head of the BlackRock Global Allocation Investment Team.
“We don’t think…

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