In addition to inflation, the retail sales data was also published in the US, which surprisingly rose by 0.3% month-on-month. The fall in fuel prices allowed people to spend on other things.
The fall in gasoline prices also positively impacted Michigan’s preliminary reading on consumer sentiment for September, which rose to a five-month high.
Labour market data was also positive, with weekly jobless claims falling to 213,000, the lowest since the early summer.
UK inflation fell from 10.1% to 9.9%, mainly due to a fall in fuel prices. However, core inflation rose from 6.2% to 6.3%.
The UK unemployment rate fell to 3.6% in the quarter to July, the lowest level since 1974. However, the number of people in employment also fell, so that the labour market may be losing momentum.
In the Eurozone, inflation rose to 9.1% in August, but the figure was in line with preliminary data. Industrial production in the euro area declined by 2.3% year-on-year in July due to the rising energy costs and supply chain bottlenecks.
The economic mood in Germany deteriorated again due to concerns about energy shortages and declines in incoming orders, industrial production and exports. As a result, the ZEW economic sentiment index fell to -61.9 points, the lowest level since October 2008.