The combination of high public debt and high interest rates, prevalent across major economies, tends to raise the probability of financial instability. The risk lies not only in public indebtedness itself, but in who finances those securities, with how much leverage and under what collateral conditions. That is what the IMF pointed to in its latest Financial Stability Report.
The consumer price index (CPI) rose 0.6% in September and the 12-month change accelerated to 3.7% (from 3.4%). Core advanced 0.3% in the month and 2.6% over 12 months. The pickup in the headline index is, above all, an energy phenomenon.
