Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has expressed optimism about the possibility of the United States avoiding a recession, even as the central bank continues to raise interest rates in an effort to combat inflation.

In a recent interview with CNBC, Goolsbee referred to this optimistic scenario as the "golden path," although he acknowledged that it comes with its share of risks and uncertainties.

"I've been calling that the golden path, and I think it's possible, but there are a lot of risks and the path is long and winding," Bloomberg quoted Goolsbee as saying, emphasising the complexities of the current economic landscape.

Goolsbee drew attention to the unemployment rate, which was at &nbsp;3.8 per cent last month and remained remarkably close to its level from the previous year when inflation was significantly higher than it is presently. This comparison underscores the Federal Reserve's challenge of achieving both full employment and price stability.

According to a report by Bloomberg, the Federal Reserve officials recently decided to maintain their benchmark lending rate at a 22-year high, with the expectation of one more rate hike for the present fiscal year. Additionally, policymakers signalled a more positive outlook for a "soft landing" for the U.S. economy but acknowledged that interest rates are likely to remain elevated for an extended period.

The report cited Chair Jerome Powell reassured that policymakers would approach the end of the rate-hiking cycle with caution while maintaining their commitment to bringing inflation back to the 2 per cent target. In July, the preferred inflation gauge for Fed officials saw a 0.2 per cent increase for the second consecutive month, marking the smallest consecutive gains since late 2020.

Goolsbee, who had previously noted progress in monthly core inflation data, reiterated that the time is rapidly approaching for discussions to shift from how high to raise rates to how long they should be held at elevated levels. The Federal Reserve will be closely monitoring fresh inflation data for August, set to be released on Friday, to inform their ongoing policy decisions.

(With inputs from Bloomberg)

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Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has expressed optimism about the possibility of the United States avoiding a recession, even as the central bank continues to raise interest rates in an effort to combat inflation.

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has expressed optimism about the possibility of the United States avoiding a recession, even as the central bank continues to raise interest rates in an effort to combat inflation. In a recent interview with CNBC, Goolsbee referred to this optimistic scenario as the "golden path," although he acknowledged that it comes with its share of risks and uncertainties. "I've been calling that the golden path, and I think it's possible, but there are a lot of risks and the path is long and winding," Bloomberg quoted Goolsbee as saying, emphasising the complexities of the current economic landscape. Goolsbee drew attention to the unemployment rate, which was at 3.8 per cent last month and remained remarkably close to its level from the previous year when inflation was significantly higher than it is presently. This comparison underscores the Federal Reserve's challenge of achieving both full employment and price stability. According to a report by Bloomberg, the Federal Reserve officials recently decided to maintain their benchmark lending rate at a 22-year high, with the expectation of one more rate hike for the present fiscal year. Additionally, policymakers signalled a more positive outlook for a "soft landing" for the U.S. economy but acknowledged that interest rates are likely to remain elevated for an extended period. The report cited Chair Jerome Powell reassured that policymakers would approach the end of the rate-hiking cycle with caution while maintaining their commitment to bringing inflation back to the 2 per cent target. In July, the preferred inflation gauge for Fed officials saw a 0.2 per cent increase for the second consecutive month, marking the smallest consecutive gains since late 2020. Goolsbee, who had previously noted progress in monthly core inflation data, reiterated that the time is rapidly approaching for discussions to shift from how high to raise rates to how long they should be held at elevated levels. The Federal Reserve will be closely monitoring fresh inflation data for August, set to be released on Friday, to inform their ongoing policy decisions. (With inputs from Bloomberg) WATCH WION LIVE HERE

Federal Reserve official highlights "golden path" to avert recession amidst rate hikes

As Pakistan continues to reel under a grave economic crisis, the World Bank has now declared that the country’s current economic model is unfit for reducing poverty. The warning came as over 12.5 million people fell below the poverty line in Pakistan in the last year alone. It means that over 40 per cent population in the South Asian country is now living under the poverty line as they struggle to meet basic needs such as food, water and electricity. Take a look.

Pakistan: 40% population slips below poverty line, World Bank sounds alarm bell | WION Originals

The United Kingdom is currently experiencing a significant rise in inflation, impacting its already struggling economy. Inflation rates there have reached unprecedented levels. In this report, we delve deep into the cost-of-living crisis in the UK.

How inflation is affecting the UK economy

Saudi Arabia and Russia extended production curbs. The price of Crude Oil regarded as a global benchmark rose to around 95% barrel on Monday as investors fretted about a worsening supply gap in the fourth quarter.

Oil price surge to $95, inflation fears rise amid oil price rally | World DNA

In an effort to reduce home inflationary pressures, the French government intends to temporarily waive a ban on merchants selling fuel below cost, Prime Minister Elisabeth Borne told newspaper Le Parisien.

This summer's spike in petrol prices has complicated government efforts to control consumer inflation, with ministers urging the food and fuel businesses to reduce their margins.

TotalEnergies has extended the year-end fuel price cap, and several supermarket chains have run specials to offer petrol at cost.

However, Borne claimed that wholesalers were unable to lower prices any more due to a 1963 prohibition on selling fuel below cost, albeit the ban would be abolished for "several months."

"With this unprecedented measure, we will obtain tangible results for the French people, without subsidising fuel," Reuters quoted her as saying in an interview published on Saturday.

She dismissed the notion of the government lowering fuel taxes, pointing out the need to lower the public deficit and debt while arguing that big businesses should contribute as well.

The government may need to take action to address the issue of large profit margins in the petroleum refining industry, according to Finance Minister Bruno Le Maire on Thursday.

Regarding food costs, Borne informed Le Parisien that beginning in November; businesses must make a note on labels whenever they change a product's size.

During the recent price surge in the food industry, so-called "shrinkflation," in which products are supplied in lower quantities without any price drop, has come under fire.

This month, the French retail operator Carrefour made the announcement that it will put notices next to any products that it discovered to be engaged in such practices.

(With inputs from Reuters)

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In an effort to reduce home inflationary pressures, the French government intends to temporarily waive a ban on merchants selling fuel below cost, Prime Minister Elisabeth Borne told newspaper Le Parisien.

In an effort to reduce home inflationary pressures, the French government intends to temporarily waive a ban on merchants selling fuel below cost, Prime Minister Elisabeth Borne told newspaper Le Parisien. This summer's spike in petrol prices has complicated government efforts to control consumer inflation, with ministers urging the food and fuel businesses to reduce their margins. TotalEnergies has extended the year-end fuel price cap, and several supermarket chains have run specials to offer petrol at cost. However, Borne claimed that wholesalers were unable to lower prices any more due to a 1963 prohibition on selling fuel below cost, albeit the ban would be abolished for "several months." "With this unprecedented measure, we will obtain tangible results for the French people, without subsidising fuel," Reuters quoted her as saying in an interview published on Saturday. She dismissed the notion of the government lowering fuel taxes, pointing out the need to lower the public deficit and debt while arguing that big businesses should contribute as well. The government may need to take action to address the issue of large profit margins in the petroleum refining industry, according to Finance Minister Bruno Le Maire on Thursday. Regarding food costs, Borne informed Le Parisien that beginning in November; businesses must make a note on labels whenever they change a product's size. During the recent price surge in the food industry, so-called "shrinkflation," in which products are supplied in lower quantities without any price drop, has come under fire. This month, the French retail operator Carrefour made the announcement that it will put notices next to any products that it discovered to be engaged in such practices. (With inputs from Reuters) WATCH WION LIVE HERE

France to permit sale of fuel below cost to combat inflation

Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea.&nbsp;

The action is intended to put pressure on significant consumer products suppliers like Nestle, PepsiCo, and Unilever to reduce prices, and also prepares the ground for crucial contract negotiations that are scheduled to be finished by October 15.&nbsp;

Even as raw material costs have begun to decline, Carrefour has started identifying goods that have increased in price but have shrunk in size. The objective is to gain consumer support as retailers get ready for significant negotiations with some of the biggest brands in the world.&nbsp;

Reuters quoted Stefen Bompais, Director of Client Communications at Carrefour, as saying that the intent behind the initiative, saying, "Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy."&nbsp;

Despite a drop in the cost of raw materials, Carrefour's CEO, Alexandre Bompard, who also serves as the head of the retail sector advocacy group FDC, has often expressed his concerns about the failure of consumer goods producers to cooperate in lowering the prices of various basics.&nbsp;

Bruno Le Maire, France's finance minister, has echoed these worries by calling 75 significant shops and consumer advocacy organisations in June to demand price reductions. Le Maire singled out Unilever, Nestle, and PepsiCo as firms not reaching pricing expectations following a new round of meetings last month.&nbsp;

Starting from Monday, Carrefour has labelled 26 products in its French stores with tags reading, “This product has seen its volume or weight fall and the effective price by the supplier rise.”&nbsp;

For instance, PepsiCo lowered the size of a bottle of its sugar-free, peach-flavored Lipton Iced Tea from 1.5 to 1.25 litres, resulting in a 40 per cent rise in the actual price per litre. Infant formula from Nestle, Guigoz, was reduced from 900 grams to 830 grams, and the Viennetta ice-cream cake from Unilever was reduced from 350 grams to 320 grams.&nbsp;

Consumer advocacy groups contend that retailers like Carrefour use "shrinkflation" on their private label products, making it a common practice.&nbsp;

With varying degrees of success, France and other European countries have been forcing large corporations to freeze or lower food and transport prices for several months to ease consumer woes brought on by rising living costs.&nbsp;

Bompais said that Carrefour has issued shrinkflation warnings in all its French stores and will continue to do so until the targeted suppliers agree to lower prices.&nbsp;

Although the shop could apply warnings to other products, it does not currently have plans to expand this programme.&nbsp;

(With inputs from Reuters)

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Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea.

Carrefour, a leading French retail chain, has launched a campaign to combat "shrinkflation," adding price warnings on a variety of goods, including Lindt chocolates and Lipton iced tea. The action is intended to put pressure on significant consumer products suppliers like Nestle, PepsiCo, and Unilever to reduce prices, and also prepares the ground for crucial contract negotiations that are scheduled to be finished by October 15. Even as raw material costs have begun to decline, Carrefour has started identifying goods that have increased in price but have shrunk in size. The objective is to gain consumer support as retailers get ready for significant negotiations with some of the biggest brands in the world. Reuters quoted Stefen Bompais, Director of Client Communications at Carrefour, as saying that the intent behind the initiative, saying, "Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy." Despite a drop in the cost of raw materials, Carrefour's CEO, Alexandre Bompard, who also serves as the head of the retail sector advocacy group FDC, has often expressed his concerns about the failure of consumer goods producers to cooperate in lowering the prices of various basics. Bruno Le Maire, France's finance minister, has echoed these worries by calling 75 significant shops and consumer advocacy organisations in June to demand price reductions. Le Maire singled out Unilever, Nestle, and PepsiCo as firms not reaching pricing expectations following a new round of meetings last month. Starting from Monday, Carrefour has labelled 26 products in its French stores with tags reading, “This product has seen its volume or weight fall and the effective price by the supplier rise.” For instance, PepsiCo lowered the size of a bottle of its sugar-free, peach-flavored Lipton Iced Tea from 1.5 to 1.25 litres, resulting in a 40 per cent rise in the actual price per litre. Infant formula from Nestle, Guigoz, was reduced from 900 grams to 830 grams, and the Viennetta ice-cream cake from Unilever was reduced from 350 grams to 320 grams. Consumer advocacy groups contend that retailers like Carrefour use "shrinkflation" on their private label products, making it a common practice. With varying degrees of success, France and other European countries have been forcing large corporations to freeze or lower food and transport prices for several months to ease consumer woes brought on by rising living costs. Bompais said that Carrefour has issued shrinkflation warnings in all its French stores and will continue to do so until the targeted suppliers agree to lower prices. Although the shop could apply warnings to other products, it does not currently have plans to expand this programme. (With inputs from Reuters) WATCH WION LIVE HERE

French retail chain Carrefour takes action against "shrinkflation". Here's why

The consumer prices in the world's largest economy rose by the most in 14 months in august. That's largely due to a rise in the cost of gasoline. However, the annual rise in underlying inflation was the smallest in nearly two years. This is significant as it is likely to give the Federal Reserve some space to leave interest rates unchanged this month. The consumer price index increased by 0.6% last month, the largest gain since June 2022, after rising 0.2% for two straight months. Gasoline prices, which jumped 10.6% after climbing 0.2% in July, accounted for more than half of the increase in the CPI.

Gasoline fuels US inflation

The drama over election dates in Pakistan continues President Arif Alvi has proposed November 6th as the date for general elections.

Pakistan president proposes November 6 as date for general elections

Poverty increased sharply in the last year in the US, new data published by the Census Bureau on Tuesday (September 12) has shown. The rising cost of living and the government pulling the plug on federal programmes that provided aid to families during the pandemic were cited as a few of the many reasons that contributed to increased poverty, particularly among children.&nbsp;

In total, 12.4 per cent of Americans lived in poverty in 2022, which was a significant uptick from 7.8 per cent in 2021, the bureau said. Inflation played a part in the increase as nominal gains were cancelled out by&nbsp;record-high inflation numbers.&nbsp;

The report stated that inflation-adjusted, median household incomes in the US fell by 2.3 per cent in 2022, compared to the year prior - making it the third straight year when median household incomes had declined.&nbsp;

Notably, in 2021, a family of four living in a rental home was&nbsp;considered poor if the income was less than&nbsp;$31,453. However, the metric shot up to $34,518 in 2022 as families below this number were classified as poor in the report.&nbsp;

Additionally, the poverty rate for children in 2022 doubled from the previous year, primarily due to the loss of the expanded Child Tax Credit&nbsp;

"The steeper relative declines in post-tax income at the bottom and middle of the income distribution are attributable to the expiration of a number of tax policies," Census Bureau official Liana Fox was quoted as saying by news agency AFP.&nbsp;

<a href="https://www.wionews.com/videos/cartonomics-decoding-the-state-of-us-economy-626756">Watch |&nbsp;Cartonomics: Decoding the state of US economy</a>

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<h2>Biden reacts</h2>

President Joe Biden, reflecting on the damning data, blamed the GOP lawmakers for refusing to extend Child Tax Credit.&nbsp;

"The rise reported today in child poverty is no accident, it is the result of a deliberate policy choice congressional Republicans made to block help for families with children while advancing massive tax cuts for the wealthiest and largest corporations," said Biden.&nbsp;

"No child should grow up in poverty, and I will continue to fight to restore the expanded Child Tax Credit to give tens of millions of families the tax relief and breathing room they deserve," he added.

<a href="https://www.wionews.com/business-economy/forecast-chinas-slowdown-means-it-may-not-surpass-us-economy-632540">Also read |&nbsp;Forecast: China’s slowdown means it may not surpass US economy</a>

The White House added that more recent data might "tell a more optimistic story" as inflation had cooled in the past few months.&nbsp;

Experts have warned that the increase in poverty, particularly amongst children, could worsen over the next year if the government and politicians fail to fill in the financial gaps with social safety net programmes for struggling families.&nbsp;

(With inputs from agencies)

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Poverty increased sharply in the last year in the US, new data published by the Census Bureau on Tuesday (September 12) has shown. The rising cost of living and the government pulling the plug on federal programmes that provided aid to families during the pandemic were cited as a few of the many reasons that contributed to increased poverty, particularly among children.

Poverty increased sharply in the last year in the US, new data published by the Census Bureau on Tuesday (September 12) has shown. The rising cost of living and the government pulling the plug on federal programmes that provided aid to families during the pandemic were cited as a few of the many reasons that contributed to increased poverty, particularly among children. In total, 12.4 per cent of Americans lived in poverty in 2022, which was a significant uptick from 7.8 per cent in 2021, the bureau said. Inflation played a part in the increase as nominal gains were cancelled out by record-high inflation numbers. The report stated that inflation-adjusted, median household incomes in the US fell by 2.3 per cent in 2022, compared to the year prior - making it the third straight year when median household incomes had declined. Notably, in 2021, a family of four living in a rental home was considered poor if the income was less than $31,453. However, the metric shot up to $34,518 in 2022 as families below this number were classified as poor in the report. Additionally, the poverty rate for children in 2022 doubled from the previous year, primarily due to the loss of the expanded Child Tax Credit "The steeper relative declines in post-tax income at the bottom and middle of the income distribution are attributable to the expiration of a number of tax policies," Census Bureau official Liana Fox was quoted as saying by news agency AFP. Watch | Cartonomics: Decoding the state of US economy × Biden reacts President Joe Biden, reflecting on the damning data, blamed the GOP lawmakers for refusing to extend Child Tax Credit. "The rise reported today in child poverty is no accident, it is the result of a deliberate policy choice congressional Republicans made to block help for families with children while advancing massive tax cuts for the wealthiest and largest corporations," said Biden. "No child should grow up in poverty, and I will continue to fight to restore the expanded Child Tax Credit to give tens of millions of families the tax relief and breathing room they deserve," he added. Also read | Forecast: China’s slowdown means it may not surpass US economy The White House added that more recent data might "tell a more optimistic story" as inflation had cooled in the past few months. Experts have warned that the increase in poverty, particularly amongst children, could worsen over the next year if the government and politicians fail to fill in the financial gaps with social safety net programmes for struggling families. (With inputs from agencies) WATCH WION LIVE HERE:

Poverty rate increased in the US in 2022: Census Bureau

Following a temporary decline in the rouble last month, Russian President Vladimir Putin took a soothing stance on the currency’s future, indicating that the government is not planning to enact further capital controls to stabilise the currency, Bloomberg reported.

The volatility of the currency is “manageable,” according to Putin, who spoke on Tuesday at an economic conference in Vladivostok, a port city on the Pacific coast of Russia. The supply of foreign currency has been constrained, he claimed, since exporters have been “restrained” in bringing their profits home from overseas.

“We need to somehow come to an agreement with business, they have to understand&nbsp;and proceed from the fact that it is safer to work here,” Bloomberg quoted Putin as saying ,“Nothing drastic needs to be done.”

The debate over capital controls in Russia has been contentious, but there a limited need for restrictions on the flow of money now that the rouble is beginning to stabilise after seeing the third-largest loss among developing markets this year.

Although the rouble lost some of its gains against the dollar as Putin spoke, it is still expected to post gains for a third straight day.

Putin is still holding his yearly display in Vladivostok, which he started doing in 2015 to entice investment and establish relationships with Asia-Pacific nations.

The event has evolved to reflect Russia’s isolation despite its increasing reliance on trade with Asia; this year, the vice president of Laos was the most notable participant to attend a plenary session with Putin. Zhang Guoqing, the Vice Premier of China, was also present at the forum and spoke with Putin on Tuesday.

Prior to his meeting with Putin on Wednesday, North Korean leader Kim Jong Un came to Russia on Tuesday. It is unknown at this time whether he would attend the conference or hold talks there. One of the prominent attendees in 2022 was Min Aung Hlaing, the leader of the junta in Myanmar and a person under US sanctions for alleged breaches of human rights.

Expanding international trade, investments, and technological and scientific collaboration will be some of the forum’s themes this year, according to Putin, whose remarks were posted on the forum’s website.

Along with the decline in the value of energy export receipts and a rise in imports, a shift away from settling trade in the dollar and the euro has also reduced the flow of currency into Russia.

Late last month, when the Russian rouble briefly surpassed 100 per dollar, the topic of capital controls resurfaced in Moscow. As a result, officials decided to take informal steps to make sure there is sufficient foreign currency available in the domestic market.

Prior to the collapse of the rouble, Putin warned of the threat from rising prices and requested action to stop the movement of cash out of Russia and to lessen market volatility.

In August, when the rouble was under heavy selling pressure, the central bank declared it would stop buying foreign currencies for the remainder of the year before delivering a sharp increase in interest rates at an emergency meeting.

However, the rouble has continued to be extremely volatile, suffering from a decline in foreign commerce in the midst of a number of international sanctions related to the Kremlin’s conflict in Ukraine.

This Friday marks the next policy review by the Bank of Russia, which just increased its benchmark rate to 12 per cent from 8.5 per cent, the second straight hike and the sharpest since the days immediately following Russia’s invasion of Ukraine in February 2022.

The central bank “was forced” to implement the significant rate increase, according to Putin, in part “because inflation began to rise slightly.”

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Following a temporary decline in the rouble last month, Russian President Vladimir Putin took a soothing stance on the currency’s future, indicating that the government is not planning to enact further capital controls to stabilise the currency, Bloomberg reported.

Following a temporary decline in the rouble last month, Russian President Vladimir Putin took a soothing stance on the currency’s future, indicating that the government is not planning to enact further capital controls to stabilise the currency, Bloomberg reported. The volatility of the currency is “manageable,” according to Putin, who spoke on Tuesday at an economic conference in Vladivostok, a port city on the Pacific coast of Russia. The supply of foreign currency has been constrained, he claimed, since exporters have been “restrained” in bringing their profits home from overseas. “We need to somehow come to an agreement with business, they have to understand and proceed from the fact that it is safer to work here,” Bloomberg quoted Putin as saying ,“Nothing drastic needs to be done.” The debate over capital controls in Russia has been contentious, but there a limited need for restrictions on the flow of money now that the rouble is beginning to stabilise after seeing the third-largest loss among developing markets this year. Although the rouble lost some of its gains against the dollar as Putin spoke, it is still expected to post gains for a third straight day. Putin is still holding his yearly display in Vladivostok, which he started doing in 2015 to entice investment and establish relationships with Asia-Pacific nations. The event has evolved to reflect Russia’s isolation despite its increasing reliance on trade with Asia; this year, the vice president of Laos was the most notable participant to attend a plenary session with Putin. Zhang Guoqing, the Vice Premier of China, was also present at the forum and spoke with Putin on Tuesday. Prior to his meeting with Putin on Wednesday, North Korean leader Kim Jong Un came to Russia on Tuesday. It is unknown at this time whether he would attend the conference or hold talks there. One of the prominent attendees in 2022 was Min Aung Hlaing, the leader of the junta in Myanmar and a person under US sanctions for alleged breaches of human rights. Expanding international trade, investments, and technological and scientific collaboration will be some of the forum’s themes this year, according to Putin, whose remarks were posted on the forum’s website. Along with the decline in the value of energy export receipts and a rise in imports, a shift away from settling trade in the dollar and the euro has also reduced the flow of currency into Russia. Late last month, when the Russian rouble briefly surpassed 100 per dollar, the topic of capital controls resurfaced in Moscow. As a result, officials decided to take informal steps to make sure there is sufficient foreign currency available in the domestic market. Prior to the collapse of the rouble, Putin warned of the threat from rising prices and requested action to stop the movement of cash out of Russia and to lessen market volatility. In August, when the rouble was under heavy selling pressure, the central bank declared it would stop buying foreign currencies for the remainder of the year before delivering a sharp increase in interest rates at an emergency meeting. However, the rouble has continued to be extremely volatile, suffering from a decline in foreign commerce in the midst of a number of international sanctions related to the Kremlin’s conflict in Ukraine. This Friday marks the next policy review by the Bank of Russia, which just increased its benchmark rate to 12 per cent from 8.5 per cent, the second straight hike and the sharpest since the days immediately following Russia’s invasion of Ukraine in February 2022. The central bank “was forced” to implement the significant rate increase, according to Putin, in part “because inflation began to rise slightly.” WATCH WION LIVE HERE

Putin expresses faith in the rouble, says ‘nothing drastic’ following crash

The average price of a household thali in India decreased slightly in August compared to the previous month, mainly because tomato prices fell significantly, Deccan Herald reported.

According to data gathered by rating agency CRISIL, homemade vegetarian thali preparation cost decreased to Rs 33.8 ($0.41) in August from Rs 34 ($0.41) in July, while non-vegetarian thali preparation cost marginally down to Rs 67.3 ($0.81) in August from Rs 67.6 ($0.81) in July.

On a year-over-year (YoY) basis, both categories’ expenses dramatically increased. When compared to the same month last year, the price of a vegetarian thali in August was 24 per cent&nbsp;higher. It was Rs 27.2 ($0.33) in August 2022.

A non-vegetarian thali increased in price by 13 per cent year over year, from Rs 59.8 ($0.72) in August 2022 to Rs 67.3 ($0.81) in August 2023.

The price of tomatoes, which increased by 176 per cent&nbsp;YoY to Rs 102 per kg ($1.23) in August 2023 from Rs 37 per kg ($0.45) in the same month the previous year, may be blamed for 21 per cent of the total increase in vegetarian thali's cost.

Tomato prices have dropped to about Rs 50 per kg ($0.60) after reaching a record high of over Rs 250 per kg ($3.01) in late July and early August.

The rating agency stated that expenses may start to level down as the retail price of tomatoes has decreased by half month-over-month to Rs 51 per kg ($0.61) in September. Additionally, starting in September, a 14.2 kg LPG cylinder will cost Rs 903 ($10.90) instead of the Rs 1,103 ($13.31) it did in August in Delhi. For customers, this will be a relief.

A vegetarian thali, for the sake of statistical consistency, consists of roti, vegetables (onion, tomato, and potato), rice, dal, curd, and salad. Chicken is used in place of dal for a non-vegetarian thali.

As most goods saw YoY price increases in August, the cost of food remained close to record highs despite the slight dip. Onion prices increased by 8 per cent, chili prices by 20 per cent, and cumin prices by 158 per cent YoY in August, which led to a 1 per cent increase in the price of vegetarian thali for the month.

The cost increase for non-vegetarian thali increased more slowly since broilers, which account for more than 50 per cent of the price, are thought to have increased between 1-3 per cent YoY.

However, a 17 per cent YoY drop in vegetable oil prices and a 14 per cent rise in potato prices helped to at least partially offset the expense of both thalis.

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The average price of a household thali in India decreased slightly in August compared to the previous month, mainly because tomato prices fell significantly, Deccan Herald reported.

The average price of a household thali in India decreased slightly in August compared to the previous month, mainly because tomato prices fell significantly, Deccan Herald reported. According to data gathered by rating agency CRISIL, homemade vegetarian thali preparation cost decreased to Rs 33.8 ($0.41) in August from Rs 34 ($0.41) in July, while non-vegetarian thali preparation cost marginally down to Rs 67.3 ($0.81) in August from Rs 67.6 ($0.81) in July. On a year-over-year (YoY) basis, both categories’ expenses dramatically increased. When compared to the same month last year, the price of a vegetarian thali in August was 24 per cent higher. It was Rs 27.2 ($0.33) in August 2022. A non-vegetarian thali increased in price by 13 per cent year over year, from Rs 59.8 ($0.72) in August 2022 to Rs 67.3 ($0.81) in August 2023. The price of tomatoes, which increased by 176 per cent YoY to Rs 102 per kg ($1.23) in August 2023 from Rs 37 per kg ($0.45) in the same month the previous year, may be blamed for 21 per cent of the total increase in vegetarian thali's cost. Tomato prices have dropped to about Rs 50 per kg ($0.60) after reaching a record high of over Rs 250 per kg ($3.01) in late July and early August. The rating agency stated that expenses may start to level down as the retail price of tomatoes has decreased by half month-over-month to Rs 51 per kg ($0.61) in September. Additionally, starting in September, a 14.2 kg LPG cylinder will cost Rs 903 ($10.90) instead of the Rs 1,103 ($13.31) it did in August in Delhi. For customers, this will be a relief. A vegetarian thali, for the sake of statistical consistency, consists of roti, vegetables (onion, tomato, and potato), rice, dal, curd, and salad. Chicken is used in place of dal for a non-vegetarian thali. As most goods saw YoY price increases in August, the cost of food remained close to record highs despite the slight dip. Onion prices increased by 8 per cent, chili prices by 20 per cent, and cumin prices by 158 per cent YoY in August, which led to a 1 per cent increase in the price of vegetarian thali for the month. The cost increase for non-vegetarian thali increased more slowly since broilers, which account for more than 50 per cent of the price, are thought to have increased between 1-3 per cent YoY. However, a 17 per cent YoY drop in vegetable oil prices and a 14 per cent rise in potato prices helped to at least partially offset the expense of both thalis. WATCH WION LIVE HERE

Household thali costs dip in August due to lower tomato prices

On Thursday, the Beijing-controlled onshore yuan plunged to its lowest level against the dollar since 2007 as concerns over an impending economic slowdown were rekindled by falling Chinese exports.

After briefly reaching 7.3284 yuan, the lowest level since December 2007, the onshore yuan lost 0.13 per cent to 7.3279 yuan to the US dollar at around 09:25 GMT.

The offshore yuan, which is traded more freely than domestic currency outside of mainland China, decreased 0.19 percent to 7.3350 to the dollar.

Data released on Thursday indicated that China’s exports and imports fell once more in August, adding to the pressure on the government to adopt more stimulus measures for the world’s second-largest economy.

According to Lee Hardman, currency analyst at MUFG bank, “speculation has grown recently that domestic policymakers may eventually permit the renminbi (yuan) to devalue more significantly to help provide more support for growth from net trade.”

“However, their actions to support the renminbi suggest a gradual depreciation path is favoured as they remain wary of encouraging a sharp pick-up in capital outflows,” he continued.

In July, prices dropped for the first time in more than two years, which kept customers from making purchases, causing imports to decline by 7.3 per cent on a year-over-year basis.

Additionally, China’s exports, which have historically been a major driver of its economic growth, fell by 8.8 per cent.

(With inputs from AFP News)

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On Thursday, the Beijing-controlled onshore yuan plunged to its lowest level against the dollar since 2007 as concerns over an impending economic slowdown were rekindled by falling Chinese exports.

On Thursday, the Beijing-controlled onshore yuan plunged to its lowest level against the dollar since 2007 as concerns over an impending economic slowdown were rekindled by falling Chinese exports. After briefly reaching 7.3284 yuan, the lowest level since December 2007, the onshore yuan lost 0.13 per cent to 7.3279 yuan to the US dollar at around 09:25 GMT. The offshore yuan, which is traded more freely than domestic currency outside of mainland China, decreased 0.19 percent to 7.3350 to the dollar. Data released on Thursday indicated that China’s exports and imports fell once more in August, adding to the pressure on the government to adopt more stimulus measures for the world’s second-largest economy. According to Lee Hardman, currency analyst at MUFG bank, “speculation has grown recently that domestic policymakers may eventually permit the renminbi (yuan) to devalue more significantly to help provide more support for growth from net trade.” “However, their actions to support the renminbi suggest a gradual depreciation path is favoured as they remain wary of encouraging a sharp pick-up in capital outflows,” he continued. In July, prices dropped for the first time in more than two years, which kept customers from making purchases, causing imports to decline by 7.3 per cent on a year-over-year basis. Additionally, China’s exports, which have historically been a major driver of its economic growth, fell by 8.8 per cent. (With inputs from AFP News) WATCH WION LIVE HERE

Onshore yuan hits 2007 dollar low amid China slowdown fears: Report

Birmingham, the second-largest city in the United Kingdom with the country’s largest local authority, declared itself bankrupt, on Tuesday (September 5) after issuing a section 114 notice which indicates that it does not have enough resources to balance its books. However, the leader of the city’s council has insisted that vital services are safe.

<h2>‘Long-standing issues’</h2>

The opposition Labour-run council in central England has also blamed Conservative governments for years of underfunding as it scrambles to settle a 760 million pound (US$980 million) bill for equal pay claims.

In the meantime, Birmingham City Council has issued a Section 114 Notice under the Local Government Finance Act 1988, which essentially blocks all spending other than essential services that it is obligated to provide by law, including&nbsp;social care, waste collection and protecting the vulnerable.

The city council has also attributed their current predicament to “long-standing issues”, like installing a new IT system and one billion pounds (US$ 1.3 billion) worth of budget cuts over the past decade under successive Conservative governments.&nbsp;

“Like local authorities across the country, it is clear that Birmingham city council faces unprecedented financial challenges,” said the leader and the deputy leader of the Labour-run council John Cotton and Sharon Thompson, in a statement, as quoted by the Guardian.&nbsp;

It went on to list huge increases in adult social care demand, “dramatic reductions” in business rates income and “rampant inflation,” which created “a perfect storm” that the local government faces. &nbsp;

Cotton also said “tough and robust decisions” would be made amid fears that the budget cuts could affect the city’s roads, parks, and libraries. However, the Tory members on the council have blamed Labour’s mismanagement of public finances of the city which is home to over one million people.

During a council meeting, on Tuesday, Robert Alden, the leader of the Conservative opposition, accused the council of “lying to the people of Birmingham” and called their supposed claim of the city “facing a golden decade” under the Labour leadership “fools’ gold.”&nbsp;

<h2>A ‘concerning situation’: Downing Street 
&nbsp;</h2>

Meanwhile, Downing Street has called the situation “concerning” for residents. The government is doing its part and will provide an additional 5.1 billion pounds (US$ 6.4 billion) to councils in 2023-24, said British Prime Minister Rishi Sunak’s official spokesperson, adding that it would also be a more than nine per cent increase for Birmingham city council.&nbsp;

He added that “clearly it’s for locally elected councils to manage their own budgets”, and that the government had expressed concern about “their governance arrangements”. Furthermore, the British government has also “requested assurances from the leader of the council about the best use of taxpayers’ money”.

But he did go on to acknowledge that Birmingham had a “particular issue” with equal pay settlements and that the ministers had “commissioned an independent governance review which will report in the coming weeks”.&nbsp;

Croydon Council in south London issued a Section 114 notice in November last year after more than 100 million pounds black hole in its budget. In December, Thurrock Council in Essex, east of London had also declared itself in financial distress.&nbsp;

(With inputs from agencies) 
 
&nbsp;

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Birmingham, the second-largest city in the United Kingdom with the country’s largest local authority, declared itself bankrupt, on Tuesday (September 5) after issuing a section 114 notice which indicates that it does not have enough resources to balance its books.

Birmingham, the second-largest city in the United Kingdom with the country’s largest local authority, declared itself bankrupt, on Tuesday (September 5) after issuing a section 114 notice which indicates that it does not have enough resources to balance its books. However, the leader of the city’s council has insisted that vital services are safe. ‘Long-standing issues’ The opposition Labour-run council in central England has also blamed Conservative governments for years of underfunding as it scrambles to settle a 760 million pound (US$980 million) bill for equal pay claims. In the meantime, Birmingham City Council has issued a Section 114 Notice under the Local Government Finance Act 1988, which essentially blocks all spending other than essential services that it is obligated to provide by law, including social care, waste collection and protecting the vulnerable. The city council has also attributed their current predicament to “long-standing issues”, like installing a new IT system and one billion pounds (US$ 1.3 billion) worth of budget cuts over the past decade under successive Conservative governments. “Like local authorities across the country, it is clear that Birmingham city council faces unprecedented financial challenges,” said the leader and the deputy leader of the Labour-run council John Cotton and Sharon Thompson, in a statement, as quoted by the Guardian. It went on to list huge increases in adult social care demand, “dramatic reductions” in business rates income and “rampant inflation,” which created “a perfect storm” that the local government faces. Cotton also said “tough and robust decisions” would be made amid fears that the budget cuts could affect the city’s roads, parks, and libraries. However, the Tory members on the council have blamed Labour’s mismanagement of public finances of the city which is home to over one million people. During a council meeting, on Tuesday, Robert Alden, the leader of the Conservative opposition, accused the council of “lying to the people of Birmingham” and called their supposed claim of the city “facing a golden decade” under the Labour leadership “fools’ gold.” A ‘concerning situation’: Downing Street Meanwhile, Downing Street has called the situation “concerning” for residents. The government is doing its part and will provide an additional 5.1 billion pounds (US$ 6.4 billion) to councils in 2023-24, said British Prime Minister Rishi Sunak’s official spokesperson, adding that it would also be a more than nine per cent increase for Birmingham city council. He added that “clearly it’s for locally elected councils to manage their own budgets”, and that the government had expressed concern about “their governance arrangements”. Furthermore, the British government has also “requested assurances from the leader of the council about the best use of taxpayers’ money”. But he did go on to acknowledge that Birmingham had a “particular issue” with equal pay settlements and that the ministers had “commissioned an independent governance review which will report in the coming weeks”. Croydon Council in south London issued a Section 114 notice in November last year after more than 100 million pounds black hole in its budget. In December, Thurrock Council in Essex, east of London had also declared itself in financial distress. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

UK: Second-largest city Birmingham’s council declares itself bankrupt

The central bank in Turkiye has a difficult situation as it hikes interest rates to attempt to address a cost-of-living problem since inflation has escalated far quicker than projected, with the biggest increase since the beginning of 2022.

Turkey's central bank battles inflation

A wave of protests has gripped Syria people are frustrated with poor living conditions despite very high living costs.

Hundreds rally in southern Syria's biggest protest in weeks

Thousands of shopkeepers across Pakistan closed their businesses on Saturday,&nbsp;September 2, 2023 in a nationwide strike, expressing their discontent with surging energy and fuel costs.&nbsp;This strike shed light on&nbsp;the economic challenges Pakistan faces due to mismanagement, an IMF agreement, and the resulting subsidy cuts, which have led to soaring petrol and electricity prices in the South Asian nation.

Pakistan's economy has suffered from decades of mismanagement and instability, culminating in a recent agreement with the International Monetary Fund (IMF) to prevent a default.

However, in exchange for IMF support, Pakistan had to reduce popular subsidies aimed at offsetting living costs.

Consequently, prices for petrol and electricity have sharply risen, deepening the financial struggles of ordinary citizens.

Also watch |&nbsp;India vs Pak: India's XI for the clash against Pakistan

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<h2>Nationwide shopkeeper protest</h2>

The strike witnessed widespread closures of markets in major cities like Lahore, Karachi, and Peshawar, with banners and placards condemning the "unreasonable surge in electricity bills and taxes."

Shopkeepers, including Lahore's Township Traders Union president Ajmal Hashmi, emphasised the urgent need for relief measures to alleviate the financial burden on the public, as reported by AFP.&nbsp;

<h2>Government's balancing act </h2>

Shopkeepers hold significant sway in Pakistan, and with national elections looming, the government faces the delicate task of keeping their support while adhering to IMF-imposed austerity measures. Pakistan's historically low tax revenues, particularly from traders, have contributed to its colossal foreign debt, making it imperative to break the cycle of relying on IMF bailouts.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-caretaker-pm-blames-us-for-strengthening-terrorists-in-the-region-631583">Pakistan: Caretaker PM blames US for strengthening terrorists in the region</a>

<h2 class="videoWrapper trancodeVideo">Escalating costs and public angst </h2>

The government's decision to raise petrol prices beyond 300 rupees ($0.98)&nbsp;per litre&nbsp;for the first time in Pakistan's history, along with an all-time low exchange rate against the dollar, has exacerbated economic challenges.

August's year-on-year inflation at 27.4 per cent and an eight per cent hike in motor fuel bills from July have further strained public finances, causing a growing divide between the government and the general populace.

As Pakistan awaits the announcement of an election date, a caretaker government has been in control since the dissolution of parliament.

The interim leadership and the terms of the IMF agreement were established during former Prime Minister Shehbaz Sharif's tenure, following the ousting of Imran Khan in 2022. Khan, a prominent political figure, remains incarcerated, facing legal challenges aimed at barring his participation in the upcoming elections.

(With inputs from agencies) 
 
&nbsp;

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Thousands of shopkeepers across Pakistan closed their businesses on Saturday, September 2, 2023 in a nationwide strike, expressing their discontent with surging energy and fuel costs.

Thousands of shopkeepers across Pakistan closed their businesses on Saturday, September 2, 2023 in a nationwide strike, expressing their discontent with surging energy and fuel costs. This strike shed light on the economic challenges Pakistan faces due to mismanagement, an IMF agreement, and the resulting subsidy cuts, which have led to soaring petrol and electricity prices in the South Asian nation. Pakistan's economy has suffered from decades of mismanagement and instability, culminating in a recent agreement with the International Monetary Fund (IMF) to prevent a default. However, in exchange for IMF support, Pakistan had to reduce popular subsidies aimed at offsetting living costs. Consequently, prices for petrol and electricity have sharply risen, deepening the financial struggles of ordinary citizens. Also watch | India vs Pak: India's XI for the clash against Pakistan Nationwide shopkeeper protest The strike witnessed widespread closures of markets in major cities like Lahore, Karachi, and Peshawar, with banners and placards condemning the "unreasonable surge in electricity bills and taxes." Shopkeepers, including Lahore's Township Traders Union president Ajmal Hashmi, emphasised the urgent need for relief measures to alleviate the financial burden on the public, as reported by AFP. Government's balancing act Shopkeepers hold significant sway in Pakistan, and with national elections looming, the government faces the delicate task of keeping their support while adhering to IMF-imposed austerity measures. Pakistan's historically low tax revenues, particularly from traders, have contributed to its colossal foreign debt, making it imperative to break the cycle of relying on IMF bailouts. Also read | Pakistan: Caretaker PM blames US for strengthening terrorists in the region Escalating costs and public angst The government's decision to raise petrol prices beyond 300 rupees ($0.98) per litre for the first time in Pakistan's history, along with an all-time low exchange rate against the dollar, has exacerbated economic challenges. August's year-on-year inflation at 27.4 per cent and an eight per cent hike in motor fuel bills from July have further strained public finances, causing a growing divide between the government and the general populace. As Pakistan awaits the announcement of an election date, a caretaker government has been in control since the dissolution of parliament. The interim leadership and the terms of the IMF agreement were established during former Prime Minister Shehbaz Sharif's tenure, following the ousting of Imran Khan in 2022. Khan, a prominent political figure, remains incarcerated, facing legal challenges aimed at barring his participation in the upcoming elections. (With inputs from agencies) WATCH WION LIVE HERE:

Pakistan shopkeepers stage nationwide strike in protest against soaring inflation

Japan may be at an inflection point in its 25-year battle with deflation as price and wage rises show signs of broadening, the government said on Tuesday, signalling its conviction the economy was nearing an end to prolonged stagnation.

Japan at 'inflection point' in 25-year battle with deflation: Government

ITC Chairman and Managing director Sanijv Puri stated that the company is witnessing signs of volume growth as inflation begins to ease. He said that the trend is expected to continue over the forthcoming quarters, PTI reported.

According to Puri, this would undoubtedly result in an increase in volume, but it won't happen immediately. Puri made this statement in New Delhi, outside of the B20 Summit, which was hosted by the Confederation of Indian Industry (CII).

Puri commented on the ITC’s decision to demerge its hotel division, saying that by creating a wholly-owned new subsidiary, ITC Hotels Ltd., it will benefit the current shareholders.

“It will be a pure-play, focused on hospitality, which can leverage the institutional strengths of ITC. And ITC in turn will be able to leverage the synergy on its hospitality business, or its FMCG businesses,” PTI quoted Puri as saying.

It is a “very robust” strategy that will help the hotel industry advance faster while maintaining synergies, and it will boost ITC’s financial KPIs, he added.

According to Puri, there are two main causes of inflation: the first is the increase in foreign geopolitical variables, and the second is the problems with climate change.

“However, now, India is much better placed in the rest of the world and I would like to compliment the government for stewarding management of inflation and being extremely proactive in taking the right steps to control that,” he said.

ITC and several other FMCG manufacturers have reported volume growth and profitability improvement for the June quarter. Aashirvaad, Bingo, Sunfeast, YiPPee, Fiama, Vivel, and Savlon are just a few of ITC’s 25 brands.

Puri told PTI, “We are already seeing green shoots of pickup on volumes as inflation is moderating,” in response to a question regarding the recovery of consumer mood and volume growth, particularly in the rural market. He believes that when inflation slows, market prices will rise or the climate shall improve. He voiced his worries about the operating environment’s ongoing weather instability.

&nbsp;

&nbsp;

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ITC Chairman and Managing director Sanijv Puri stated that the company is witnessing signs of volume growth as inflation begins to ease. He said that the trend is expected to continue over the forthcoming quarters, PTI reported.

ITC Chairman and Managing director Sanijv Puri stated that the company is witnessing signs of volume growth as inflation begins to ease. He said that the trend is expected to continue over the forthcoming quarters, PTI reported. According to Puri, this would undoubtedly result in an increase in volume, but it won't happen immediately. Puri made this statement in New Delhi, outside of the B20 Summit, which was hosted by the Confederation of Indian Industry (CII). Puri commented on the ITC’s decision to demerge its hotel division, saying that by creating a wholly-owned new subsidiary, ITC Hotels Ltd., it will benefit the current shareholders. “It will be a pure-play, focused on hospitality, which can leverage the institutional strengths of ITC. And ITC in turn will be able to leverage the synergy on its hospitality business, or its FMCG businesses,” PTI quoted Puri as saying. It is a “very robust” strategy that will help the hotel industry advance faster while maintaining synergies, and it will boost ITC’s financial KPIs, he added. According to Puri, there are two main causes of inflation: the first is the increase in foreign geopolitical variables, and the second is the problems with climate change. “However, now, India is much better placed in the rest of the world and I would like to compliment the government for stewarding management of inflation and being extremely proactive in taking the right steps to control that,” he said. ITC and several other FMCG manufacturers have reported volume growth and profitability improvement for the June quarter. Aashirvaad, Bingo, Sunfeast, YiPPee, Fiama, Vivel, and Savlon are just a few of ITC’s 25 brands. Puri told PTI, “We are already seeing green shoots of pickup on volumes as inflation is moderating,” in response to a question regarding the recovery of consumer mood and volume growth, particularly in the rural market. He believes that when inflation slows, market prices will rise or the climate shall improve. He voiced his worries about the operating environment’s ongoing weather instability. WATCH WION LIVE HERE

 ITC CMD Sanjiv Puri sees signs of volume growth as inflation moderates

In an effort to address the soaring inflation, Turkey's Central Bank has taken the markets by surprise by raising its key interest rate by a substantial 750 basis points bringing it to 25%. This measure marks the highest level that the policy rate has seen since 2019.

Turkey raises inflation to 25% to tackle inflation

Turkiye’s central bank increased its benchmark interest rate by a higher-than-anticipated 750 basis points to 25 per cent on Thursday, igniting a rare lira rally and indicating a renewed commitment to combating rising inflation as part of a broader policy U-turn.

The unexpected move has resulted in the policy rate reaching its highest level since 2019 and the Turkish Lira is at its highest level since mid-July. Since June, the bank has increased the TRINT=ECI one-week repo rate by 1,650 basis points.

The policy committee reiterated that it would tighten “as much as needed in a timely and gradual manner” to lower inflation, which jumped to nearly 48 per cent last month. The committee included three members participating for the first time who are viewed as having hawkish sway.

After years of unconventional policies under President Tayyip Erdogan, analysts said the shift was the clearest one yet toward more conventional measures and could help control inflation.

In the days leading up to the policy announcement, as well as in previous weeks, the lira experienced nearly daily new all-time lows. But it then increased by more than three per cent in relation to the dollar and peaked at 26.41 at 12:05 GMT.

According to Tradeweb data, the price of the government’s dollar-denominated bonds increased by more than two cents, while Turkish bank stocks increased by almost 10 per cent, supporting the larger Istanbul Stock Exchange.

A Reuters poll of analysts found that they anticipated a median increase of 250 basis points from the previous 17.5 per cent, with some even anticipating a more dovish decision given the bank’s performance over the previous two months.

As per the poll conducted in the last week, the interest rates were not anticipated to rise to 25 per cent until the end of the year.

The rate hike “sends a very strong signal that the (bank) is determined to rein in inflation and the initial market response is very positive,” Reuters quoted Piotr Matys, a senior FX analyst at In Touch Capital Markets, as saying.&nbsp;

He also said, “at least some investors will be wondering whether the 750bps hike has been approved by President Erdogan.”

(With inputs from Reuters)

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Turkiye’s central bank increased its benchmark interest rate by a higher-than-anticipated 750 basis points to 25 per cent on Thursday, igniting a rare lira rally and indicating a renewed commitment to combating rising inflation as part of a broader policy U-turn.

Turkiye’s central bank increased its benchmark interest rate by a higher-than-anticipated 750 basis points to 25 per cent on Thursday, igniting a rare lira rally and indicating a renewed commitment to combating rising inflation as part of a broader policy U-turn. The unexpected move has resulted in the policy rate reaching its highest level since 2019 and the Turkish Lira is at its highest level since mid-July. Since June, the bank has increased the TRINT=ECI one-week repo rate by 1,650 basis points. The policy committee reiterated that it would tighten “as much as needed in a timely and gradual manner” to lower inflation, which jumped to nearly 48 per cent last month. The committee included three members participating for the first time who are viewed as having hawkish sway. After years of unconventional policies under President Tayyip Erdogan, analysts said the shift was the clearest one yet toward more conventional measures and could help control inflation. In the days leading up to the policy announcement, as well as in previous weeks, the lira experienced nearly daily new all-time lows. But it then increased by more than three per cent in relation to the dollar and peaked at 26.41 at 12:05 GMT. According to Tradeweb data, the price of the government’s dollar-denominated bonds increased by more than two cents, while Turkish bank stocks increased by almost 10 per cent, supporting the larger Istanbul Stock Exchange. A Reuters poll of analysts found that they anticipated a median increase of 250 basis points from the previous 17.5 per cent, with some even anticipating a more dovish decision given the bank’s performance over the previous two months. As per the poll conducted in the last week, the interest rates were not anticipated to rise to 25 per cent until the end of the year. The rate hike “sends a very strong signal that the (bank) is determined to rein in inflation and the initial market response is very positive,” Reuters quoted Piotr Matys, a senior FX analyst at In Touch Capital Markets, as saying. He also said, “at least some investors will be wondering whether the 750bps hike has been approved by President Erdogan.” (With inputs from Reuters) WATCH WION LIVE HERE

Turkish lira shoots up after a 25 per cent rate hike

The Indian Finance Ministry stated on August 22 that although food price increases may be “transitory”, India’s inflationary pressures are still ongoing.&nbsp;

According to The Hindu report, the ministry attributed the most recent increase in headline inflation to global uncertainties brought on by the termination of the Black Sea Grain Initiative, which has disrupted supplies of wheat and edible oils as well as problems with domestic farm output.

The Ministry noted that the 11.5 per cent food inflation rate was “perhaps the third highest” since the current Consumer Price Index (CPI) series started in 2014 and that the impact of the worldwide disruptions was “clearly evident” in the sharp increase in retail inflation pace in July to a 15-month high of 7.44 per cent. It noted that core inflation, which excludes the cost of gasoline and food, was at a 39-month low of 4.9 per cent.

The ministry emphasised on the need to maintain macroeconomic stability by stating that the current level of inflationary pressures may continue to rise for the foreseeable future due to domestic and global disruptions. This would require more vigilance from the government and central bank.

“Cereals, pulses and vegetables exhibited double-digit growth… [but] only 48 per cent of food items have inflation of above 6 per cent, and this includes 14 food items with inflation in double digits. Items like tomato, green chilli, ginger and garlic witnessed inflation of more than 50 per cent,” The Hindu quoted the Finance Ministry as saying in its monthly economic review for July.

According to the review, significant food inflation last month was caused by these “abnormal” upticks in select commodities, but this is anticipated to be temporary.&nbsp;

“Tomato prices are likely to decline with the arrival of fresh stocks by the end of August or early September. Further enhanced imports of tur dal are expected to moderate pulses inflation,” it indicated, arguing that these and other government efforts can soon moderate the high food prices in the coming months.

&nbsp;

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The Indian Finance Ministry stated on August 22 that although food price increases may be “transitory”, India’s inflationary pressures are still ongoing. According to The Hindu report, the ministry attributed the most recent increase in headline inflation to global uncertainties brought on by the termination of the Black Sea Grain Initiative, which has disrupted supplies of wheat and edible oils as well as problems with domestic farm output.

The Indian Finance Ministry stated on August 22 that although food price increases may be “transitory”, India’s inflationary pressures are still ongoing. According to The Hindu report, the ministry attributed the most recent increase in headline inflation to global uncertainties brought on by the termination of the Black Sea Grain Initiative, which has disrupted supplies of wheat and edible oils as well as problems with domestic farm output. The Ministry noted that the 11.5 per cent food inflation rate was “perhaps the third highest” since the current Consumer Price Index (CPI) series started in 2014 and that the impact of the worldwide disruptions was “clearly evident” in the sharp increase in retail inflation pace in July to a 15-month high of 7.44 per cent. It noted that core inflation, which excludes the cost of gasoline and food, was at a 39-month low of 4.9 per cent. The ministry emphasised on the need to maintain macroeconomic stability by stating that the current level of inflationary pressures may continue to rise for the foreseeable future due to domestic and global disruptions. This would require more vigilance from the government and central bank. “Cereals, pulses and vegetables exhibited double-digit growth… [but] only 48 per cent of food items have inflation of above 6 per cent, and this includes 14 food items with inflation in double digits. Items like tomato, green chilli, ginger and garlic witnessed inflation of more than 50 per cent,” The Hindu quoted the Finance Ministry as saying in its monthly economic review for July. According to the review, significant food inflation last month was caused by these “abnormal” upticks in select commodities, but this is anticipated to be temporary. “Tomato prices are likely to decline with the arrival of fresh stocks by the end of August or early September. Further enhanced imports of tur dal are expected to moderate pulses inflation,” it indicated, arguing that these and other government efforts can soon moderate the high food prices in the coming months. WATCH WION LIVE HERE

Inflationary pressures may persist but food prices to stabilise: Indian finance ministry 

Pakistan's cup of woes is overflowing as the country's economy is in deep crisis - a never-ending nightmare for its citizens. The government was expecting help from IMF but it wasn't forthcoming. The Pakistani rupee is in free fall and inflation continues to spiral.

Over 4,50,000 Pakistanis leave nation for better life in 2023

It is late August, meaning that the annual conference of the Kansas City Fed, which will be attended by leading central bankers from all around the world is to take place in Jackson Hole. As usual, everyone is particularly interested in hearing what Federal Reserve Chair Jerome Powell, who is scheduled to speak Friday morning, might have to say.

The minutes of the July policy meeting held by the US central bank were recently released, and it was clear from the records that most Federal Reserve members at the time viewed a large upside risk to inflation, which may have necessitated even further tightening. On the other hand, two also backed maintaining current rates, the first significant indication of disagreement over the course of action in a long time.

Key data points since that meeting have demonstrated that price and wage pressures are continuing to diminish, which should support the argument for stopping rate hikes. Although consumer expenditure and labor-market activity indices have continued to show improvement, authorities may nonetheless be concerned about the likelihood of an ongoing decline in inflation.

A crucial question is how Powell might be considering those developments. In addition, any hints as to how the central bank might be formulating a strategy for rate decreases in 2024 will also be closely watched. Otherwise, participants will take interest in active discussions regarding “Structural Shifts in the Global Economy,” the retreat’s main theme this year.

(With inputs from agencies)

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<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

It is late August, meaning that the annual conference of the Kansas City Fed, which will be attended by leading central bankers from all around the world is to take place in Jackson Hole.

It is late August, meaning that the annual conference of the Kansas City Fed, which will be attended by leading central bankers from all around the world is to take place in Jackson Hole. As usual, everyone is particularly interested in hearing what Federal Reserve Chair Jerome Powell, who is scheduled to speak Friday morning, might have to say. The minutes of the July policy meeting held by the US central bank were recently released, and it was clear from the records that most Federal Reserve members at the time viewed a large upside risk to inflation, which may have necessitated even further tightening. On the other hand, two also backed maintaining current rates, the first significant indication of disagreement over the course of action in a long time. Key data points since that meeting have demonstrated that price and wage pressures are continuing to diminish, which should support the argument for stopping rate hikes. Although consumer expenditure and labor-market activity indices have continued to show improvement, authorities may nonetheless be concerned about the likelihood of an ongoing decline in inflation. A crucial question is how Powell might be considering those developments. In addition, any hints as to how the central bank might be formulating a strategy for rate decreases in 2024 will also be closely watched. Otherwise, participants will take interest in active discussions regarding “Structural Shifts in the Global Economy,” the retreat’s main theme this year. (With inputs from agencies) WATCH WION LIVE HERE

All eyes now on Federal Reserve Chief Powell in Jackson Hole: Report  

The Pakistan rupee hit a new record low to 20% in 2023. There's no let up from the economic crisis as the country battles record-high inflation and falling foreign reserves.

Pakistan's rupee falls to a new record low, drops 20% low in 2023

China is in discussion to allow local governments to sell 1.5 trillion yuan ($295.9 billion) of special financing bonds to help with debt repayment for 12 regions, according to a report by Caixin.

The regions involved, including Tianjin, Guizhou, Yunnan, Shaanxi, and Chongqing, are under increased pressure to pay off local government debt. Caixin published a report on Saturday without citing the source of the data.

According to the report, the Chinese central bank may establish a special purpose unit alongside banks to offer long-term, low-cost liquidity to local government finance units. According to the statement, the anticipated actions should assist local government financial vehicles (LGFVs) in lowering liquidity risks.

China requests more loans and the reduction of debt risk as its problems worsen.&nbsp;

One of the biggest dangers to the stability of the Chinese economy and its financial system is the debt of LGFVs and other off-balance sheet issuers. The problem has previously been referred to as one of China's “major economic and financial risks” by President Xi Jinping.

As another indication of how authorities were attempting to address financial threats, the government started a round of nationwide inspections to determine how much money local governments owed, according to a June article by Bloomberg News.

China’s top decision-making body, the Politburo of the ruling Communist Party, announced in July that it will take a series of steps to address local government debt.

(With inputs from agencies)

&nbsp;

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<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

China is in discussion to allow local governments to sell 1.5 trillion yuan ($295.9 billion) of special financing bonds to help with debt repayment for 12 regions, according to a report by Caixin.

China is in discussion to allow local governments to sell 1.5 trillion yuan ($295.9 billion) of special financing bonds to help with debt repayment for 12 regions, according to a report by Caixin. The regions involved, including Tianjin, Guizhou, Yunnan, Shaanxi, and Chongqing, are under increased pressure to pay off local government debt. Caixin published a report on Saturday without citing the source of the data. According to the report, the Chinese central bank may establish a special purpose unit alongside banks to offer long-term, low-cost liquidity to local government finance units. According to the statement, the anticipated actions should assist local government financial vehicles (LGFVs) in lowering liquidity risks. China requests more loans and the reduction of debt risk as its problems worsen. One of the biggest dangers to the stability of the Chinese economy and its financial system is the debt of LGFVs and other off-balance sheet issuers. The problem has previously been referred to as one of China's “major economic and financial risks” by President Xi Jinping. As another indication of how authorities were attempting to address financial threats, the government started a round of nationwide inspections to determine how much money local governments owed, according to a June article by Bloomberg News. China’s top decision-making body, the Politburo of the ruling Communist Party, announced in July that it will take a series of steps to address local government debt. (With inputs from agencies) WATCH WION LIVE HERE

China’s local governments will sell $206 billion to repay financing debt 

Inflation is soaring in India. Measures are being taken to control high prices. The Indian government is reportedly considering a plan to reduce taxes applicable on petrol.

Will the Indian government reduce taxes on oil to contain inflation?

In a bid to curb food inflation, the Indian government has imposed a 40% Duty on onion exports. The government's move is aimed at curbing the price of onions.

Onion price hike: India imposes 40% duty on onion exports

Target's recent earnings report provides valuable insights into the current state of the American economy and consumer behavior. The retail giant's performance sheds light on what people are buying and where sales have increased, reflecting broader economic trends and consumer sentiments.

HIGHLIGHTS OF TARGET'S EARNINGS

- Earnings per share: $1.80

- Revenue: $24.77 Billion

Despite missing quarterly sales expectations and lowering its full-year forecast, Target's earnings report offers a nuanced perspective on the American economy's dynamics.

DECODING CONSUMER SPENDING TRENDS THROUGH TARGET'S EARNINGS

- Consumers cut down on discretionary spends

- Trends point at cautious consumer spending

- Consumers more focused on necessities

- Sales of impulse driven items down

Target's strong performance in certain categories underscores evolving consumer priorities. The retailer's struggles to entice shoppers to spend on discretionary items reflect a broader trend of cautious consumer behavior.

Target's CEO Brian Cornell highlighted, rising interest rates, the return of student loan payments, and elevated prices for everyday essentials as challenges for consumers. "As we look at the consumer landscape today, we recognize the consumer is still challenged by the levels of inflation that they’re seeing in food and beverage and household essentials," he said.

The emphasis on necessities is evident in Target's merchandise mix and sales trends. While sales of fun and impulse-driven items have declined, categories like groceries and household essentials remain resilient. Groceries constitute a smaller portion of Target's revenue compared to Walmart, emphasizing Target's reliance on other product categories. This trend aligns with consumer prioritization of needs over wants, as discretionary funds are directed towards essential items rather than leisure purchases.

Target's strategic shifts and successes also indicate consumers' changing preferences. The retailer's adaptation to high-frequency categories, such as groceries and household essentials, showcases its responsiveness to consumer demands. Growth in these areas has compensated for declines in discretionary categories, signifying a focus on meeting essential needs amidst economic challenges.

The collaboration with Ulta Beauty and the surge in beauty product sales suggest consumers' continued interest in self-care and personal indulgence. Sales of brightly colored tumblers, Barbie-themed merchandise, and exclusive vinyl records illustrate the enduring appeal of nostalgic and unique items. This trend indicates that consumers are willing to spend on products that provide a sense of comfort, joy, and self-expression.

The partnership with Ulta Beauty underscores the evolving retail landscape, where specialized collaborations enhance the shopping experience and tap into diverse consumer interests. This strategy aligns with consumers' desire for personalized and meaningful purchases, which can mitigate the impact of economic uncertainty.

Target's recent earnings report offers a nuanced glimpse into the American economy's current state and consumer behavior. The company's struggles to drive discretionary spending highlight the impact of inflation and economic uncertainty on consumer choices. However, the success of certain product categories, strategic partnerships, and emphasis on affordability underscore consumers' evolving preferences and their desire for both essentials and meaningful indulgences.

Target's recent earnings report provides valuable insights into the current state of the American economy and consumer behavior. The retail giant's performance sheds light on what people are buying and where sales have increased, reflecting broader economic trends and consumer sentiments.

Target's recent earnings report provides valuable insights into the current state of the American economy and consumer behavior. The retail giant's performance sheds light on what people are buying and where sales have increased, reflecting broader economic trends and consumer sentiments. HIGHLIGHTS OF TARGET'S EARNINGS - Earnings per share: $1.80 - Revenue: $24.77 Billion Despite missing quarterly sales expectations and lowering its full-year forecast, Target's earnings report offers a nuanced perspective on the American economy's dynamics. DECODING CONSUMER SPENDING TRENDS THROUGH TARGET'S EARNINGS - Consumers cut down on discretionary spends - Trends point at cautious consumer spending - Consumers more focused on necessities - Sales of impulse driven items down Target's strong performance in certain categories underscores evolving consumer priorities. The retailer's struggles to entice shoppers to spend on discretionary items reflect a broader trend of cautious consumer behavior. Target's CEO Brian Cornell highlighted, rising interest rates, the return of student loan payments, and elevated prices for everyday essentials as challenges for consumers. "As we look at the consumer landscape today, we recognize the consumer is still challenged by the levels of inflation that they’re seeing in food and beverage and household essentials," he said. The emphasis on necessities is evident in Target's merchandise mix and sales trends. While sales of fun and impulse-driven items have declined, categories like groceries and household essentials remain resilient. Groceries constitute a smaller portion of Target's revenue compared to Walmart, emphasizing Target's reliance on other product categories. This trend aligns with consumer prioritization of needs over wants, as discretionary funds are directed towards essential items rather than leisure purchases. Target's strategic shifts and successes also indicate consumers' changing preferences. The retailer's adaptation to high-frequency categories, such as groceries and household essentials, showcases its responsiveness to consumer demands. Growth in these areas has compensated for declines in discretionary categories, signifying a focus on meeting essential needs amidst economic challenges. The collaboration with Ulta Beauty and the surge in beauty product sales suggest consumers' continued interest in self-care and personal indulgence. Sales of brightly colored tumblers, Barbie-themed merchandise, and exclusive vinyl records illustrate the enduring appeal of nostalgic and unique items. This trend indicates that consumers are willing to spend on products that provide a sense of comfort, joy, and self-expression. The partnership with Ulta Beauty underscores the evolving retail landscape, where specialized collaborations enhance the shopping experience and tap into diverse consumer interests. This strategy aligns with consumers' desire for personalized and meaningful purchases, which can mitigate the impact of economic uncertainty. Target's recent earnings report offers a nuanced glimpse into the American economy's current state and consumer behavior. The company's struggles to drive discretionary spending highlight the impact of inflation and economic uncertainty on consumer choices. However, the success of certain product categories, strategic partnerships, and emphasis on affordability underscore consumers' evolving preferences and their desire for both essentials and meaningful indulgences.

Decoded: What Target's earnings say about the US economy

Is it time to rethink and recalibrate India's inflation and monetary policy trajectory? Are the markets and the central bank underestimating inflation risks again, as they did in 2021? Inflation has been India's bane for decades. But economists expect the recent surge in price pressures to be transitory.

India's inflation troubles persist

India’s retail inflation rose to a 15-month high in July on account of high prices of vegetables and other food items, official data showed on Monday (Aug 14).

According to the data released by the National Statistical Office (NSO), retail inflation, as measured by the consumer price index, was 7.44 per cent in July this year. In the previous month, it was 4.87 per cent, and 6.71 per cent in July last year.

Inflation in the consumer food price index rose to 11.51 per cent in July while inflation in the food and beverages basket jumped to 10.57 per cent.

Retail inflation in vegetables surged to 37.34 per cent last month from a deflation of -0.93 per cent in June.

Inflation was also witnessed in different components of the food basket.

<h2>Food prices go up</h2>

While food and beverage inflation soared to 10.57 per cent, compared to 4.63 per cent last month, cereals recorded 13.04 per cent inflation from 12.71 per cent in June.

For fuel and light, the inflation was at 3.67 per cent in July. Rural inflation came in at 7.63 per cent, compared to 4.72 per cent in June, while urban inflation stood at 7.2 per cent, rising from 4.96 per cent in June.

A poll of 53 economists conducted by Reuters had estimated the headline inflation would surge up to 6.40 per cent on an annual basis on rising food prices.

<h2>RBI expects inflation rates to rise&nbsp;</h2>

The data comes days after the Reserve Bank of India’s Monetary Policy Committee meeting, which has suggested that inflation would continue to remain high in August as well.

However, the RBI said, “While the vegetable price shock may reverse quickly, possible El Nino weather conditions, along with global food prices need to be watched closely, against the backdrop of skewed Southwest Monsoon.”

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/india-and-uae-make-landmark-move-to-settle-crude-oil-transactions-in-national-currencies-625386">India and UAE to settle crude oil transactions in national currencies</a>

In its August monetary policy review, the RBI kept the policy rates unchanged at 6.50 per cent but raised the forecast for CPI inflation for FY24 to 5.4 per cent from 5.1 per cent.

(With inputs from agencies)

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India’s retail inflation rose to a 15-month high in July on account of high prices of vegetables and other food items, official data showed on Monday (Aug 14). According to the data released by the National Statistical Office (NSO), retail inflation, as measured by the consumer price index, was 7.

India’s retail inflation rose to a 15-month high in July on account of high prices of vegetables and other food items, official data showed on Monday (Aug 14). According to the data released by the National Statistical Office (NSO), retail inflation, as measured by the consumer price index, was 7.44 per cent in July this year. In the previous month, it was 4.87 per cent, and 6.71 per cent in July last year. Inflation in the consumer food price index rose to 11.51 per cent in July while inflation in the food and beverages basket jumped to 10.57 per cent. Retail inflation in vegetables surged to 37.34 per cent last month from a deflation of -0.93 per cent in June. Inflation was also witnessed in different components of the food basket. Food prices go up While food and beverage inflation soared to 10.57 per cent, compared to 4.63 per cent last month, cereals recorded 13.04 per cent inflation from 12.71 per cent in June. For fuel and light, the inflation was at 3.67 per cent in July. Rural inflation came in at 7.63 per cent, compared to 4.72 per cent in June, while urban inflation stood at 7.2 per cent, rising from 4.96 per cent in June. A poll of 53 economists conducted by Reuters had estimated the headline inflation would surge up to 6.40 per cent on an annual basis on rising food prices. RBI expects inflation rates to rise The data comes days after the Reserve Bank of India’s Monetary Policy Committee meeting, which has suggested that inflation would continue to remain high in August as well. However, the RBI said, “While the vegetable price shock may reverse quickly, possible El Nino weather conditions, along with global food prices need to be watched closely, against the backdrop of skewed Southwest Monsoon.” Also read | India and UAE to settle crude oil transactions in national currencies In its August monetary policy review, the RBI kept the policy rates unchanged at 6.50 per cent but raised the forecast for CPI inflation for FY24 to 5.4 per cent from 5.1 per cent. (With inputs from agencies) WATCH WION LIVE HERE

India’s retail inflation in July soars to 15-month high of 7.44%

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