Even a global recession may not bring down inflation

Investors have swooned at the good news. Since early October European shares have risen, with optimists declaring an end to the continent’s energy crisis in sight. Chinese stocks have jumped at recent talk that Xi Jinping will abandon his “zero-covid” policy, and as regulators have loosened their curbs on the property sector. On November 10th, on the news that America’s consumer-price inflation had come in slightly below economists’ expectations, the tech-heavy nasdaq index rose by 7%, one of the biggest ever daily moves, as investors priced in lower interest rates.