The pace of price hikes has slowed down to a snail space dropping to its lowest levels since Russia invaded Ukraine right consumer prices in the Eurozone Rose May 6.1 last month compared to more flamboyant seven percent in April it's the slowest dance with inflation since February 2022 when Moscow's Invasion sent Energy prices soaring food prices have decided to cool down their fiery dance moves for the second month in a row on the other hand Energy prices have taken a tumble surprising everyone with their unexpected break dancing skills core inflation has slowed to a four-month low of 5.3 percent.

Inflation Europe whispers slow down amid Russian invasion

In a recent interview, former United States treasury secretary Larry Summers said that Brexit will be remembered as a “historic economic error” which could have not only damaged the United Kingdom’s economy but helped increase the country’s inflation. Meanwhile, inflation in the Eurozone has fallen to 6.1 per cent in May 2023 down from 7.0 per cent, in April.&nbsp;

<h2>What did Summers say about the UK economy?</h2>

Speaking to BBC Radio 4’s Today Programme, Summers on Thursday said, “Brexit will be remembered as a historic economic error that reduced the competitiveness of the UK economy, put downward pressure on the pound and upward pressure on prices, limited import goods and limited in some ways the supply of labour. All of which contributed to higher inflation.”

One of the most prominent economists who served as the US treasury secretary, Summers also spoke about how the UK economic policy has been “substantially flawed for some years,” speaking particularly about its exit from the European Union (EU) and how it has driven costs higher in Britain.&nbsp;

Summers also went on to criticise officials at the Bank of England for Britain’s high inflation and said that the country’s problems have been “reinforced by very ill-judged monetary policies”.&nbsp;

This comes as the UK has been witnessing a cost-of-living crisis and soaring inflation. Last week, the country’s Office for National Statistics reported that inflation remains stubbornly high at 8.7 per cent in April, but&nbsp;it is down from 10.1 per cent in March.&nbsp;

Earlier this month, a report by the London School of Economics (LSE) said that British households have paid billions to make up for the extra cost of trade barriers on food imports from the EU. Notably, the UK also has the highest rate of inflation among the Group of Seven (G7) nations.&nbsp;

<h2>Eurozone inflation falls to 6.1 per cent&nbsp;</h2>

Meanwhile, inflation in the 20 countries which use the euro and are referred to as the ‘eurozone’ fell to 6.1 per cent in May 2023, down from 7.0 per cent the month prior, reported EU’s Eurostat agency. This drop also takes the countries’ annual inflation closer to the European Central Bank’s target of two per cent.&nbsp;

The decrease in inflation has been attributed to a drop in energy prices, while food and alcohol were the main components driving inflation, rising 12.5 per cent in May which was one per cent lower than the month before. Last year, the Eurozone was struggling with high inflation at 10.6 per cent due to the effects of the Russian invasion of Ukraine and supply chain issues post-Covid.&nbsp;

(With inputs from agencies)&nbsp; 
 
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In a recent interview, former United States treasury secretary Larry Summers said that Brexit will be remembered as a “historic economic error” which could have not only damaged the United Kingdom’s economy but helped increase the country’s inflation.

In a recent interview, former United States treasury secretary Larry Summers said that Brexit will be remembered as a “historic economic error” which could have not only damaged the United Kingdom’s economy but helped increase the country’s inflation. Meanwhile, inflation in the Eurozone has fallen to 6.1 per cent in May 2023 down from 7.0 per cent, in April. What did Summers say about the UK economy? Speaking to BBC Radio 4’s Today Programme, Summers on Thursday said, “Brexit will be remembered as a historic economic error that reduced the competitiveness of the UK economy, put downward pressure on the pound and upward pressure on prices, limited import goods and limited in some ways the supply of labour. All of which contributed to higher inflation.” One of the most prominent economists who served as the US treasury secretary, Summers also spoke about how the UK economic policy has been “substantially flawed for some years,” speaking particularly about its exit from the European Union (EU) and how it has driven costs higher in Britain. Summers also went on to criticise officials at the Bank of England for Britain’s high inflation and said that the country’s problems have been “reinforced by very ill-judged monetary policies”. This comes as the UK has been witnessing a cost-of-living crisis and soaring inflation. Last week, the country’s Office for National Statistics reported that inflation remains stubbornly high at 8.7 per cent in April, but it is down from 10.1 per cent in March. Earlier this month, a report by the London School of Economics (LSE) said that British households have paid billions to make up for the extra cost of trade barriers on food imports from the EU. Notably, the UK also has the highest rate of inflation among the Group of Seven (G7) nations. Eurozone inflation falls to 6.1 per cent Meanwhile, inflation in the 20 countries which use the euro and are referred to as the ‘eurozone’ fell to 6.1 per cent in May 2023, down from 7.0 per cent the month prior, reported EU’s Eurostat agency. This drop also takes the countries’ annual inflation closer to the European Central Bank’s target of two per cent. The decrease in inflation has been attributed to a drop in energy prices, while food and alcohol were the main components driving inflation, rising 12.5 per cent in May which was one per cent lower than the month before. Last year, the Eurozone was struggling with high inflation at 10.6 per cent due to the effects of the Russian invasion of Ukraine and supply chain issues post-Covid. (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.

‘Historic economic error’: Former US treasury secretary Larry Summers about Brexit; Eurozone inflation falls

According to reports, the UK government is negotiating with large retailers to impose a price restriction on basic foods in an effort to address the country's rising cost of living. According to a voluntary agreement, prices for milk, bread, and other goods could be reduced, according to the BBC. The most recent inflation data for the UK were revealed last week, and it showed that food prices rose 19.1% in April.

UK government plans price cap on essential food

In a moment of respite for UK Prime Minister Rishi Sunak, the country’s annual inflation rate dropped to a 13-month low of 8.7 per cent in April,&nbsp;from 10.1% in March, registering the biggest fall since the cost of living crisis began, but food prices still remain&nbsp;elevated at one of the highest levels in 45 years,&nbsp;according to official data.

The development bringing some respite&nbsp;comes after months of post-pandemic cost-of-living crisis aggravated by war in Ukraine had&nbsp;pushed up energy prices in one of the coldest winters in Europe in recent times.&nbsp;

<h2>Britain inflation data: What is the reading?</h2>

According to the UK's Office for National Statistics, the rate of price increases came down from 10.1 per cent in March,&nbsp;and the inflation in April is down under 10 per cent for the first time since August last year.

ALSO WATCH |&nbsp;UK inflation falls to 8.7% in April, food prices still remain high

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At 8.7 per cent, it was at the lowest level since March last year, when the rate stood at 7.0 per cent.

"However, prices in general remain substantially higher than they were this time last year, with annual food price inflation near historic highs," said ONS chief economist Grant Fitzner in an official statement. 
 
The rate at which food prices are rising fell for the second month in a row in May but remains ‘incredibly high’, says research firm Kantar.

Prices were up by 17.2% from a year ago in the four weeks to the middle of May, down from 17.3% last month, it said. Food price rises are expected to ease further later this year, it added.

<h2>UK inflation drop: What is the catch?</h2>

The inflation rate continues to remain above the Bank of England's (BoE) prediction for inflation of 8.4 per cent last month.

Britain's annual inflation rate in April was also the highest among the G-7 countries in the Group of Seven rich economies, which include&nbsp;Canada, France, Germany, Italy, Japan and the United States.

Meanwhile, the target rate of 2.0 per cent remains very far off for the UK government. Prime Minister Rishi Sunak's government has said that the inflation may drop up to about 5.0 per cent by the end of 2023.

“Last month, the rate of inflation fell notably as the large energy price rises seen last year were not repeated... but was offset partially by increases in the cost of second-hand cars and cigarettes,” Fitzner added.

<h2>UK economy: Inflation numbers come after IMF U-turn</h2>

The data comes a day after the International Monetary Fund, in a major U-turn on its forecast for the UK economy, said that it expected growth this year just one month after predicting a contraction.

Britain's economy is expected to expand 0.4 per cent in 2023, the IMF said in its latest outlook document, which cited weaker energy prices.

The IMF ripped up its previous forecast in April for a 0.3-per cent contraction.

"The IMF said yesterday we've acted decisively to tackle inflation but although it is positive that it is now in single digits, food prices are still rising too fast," UK finance minister Jeremy Hunt said following the release of inflation data on Wednesday. 
 
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In a moment of respite for UK Prime Minister Rishi Sunak, the country’s annual inflation rate dropped to a 13-month low of 8.7 per cent in April, from 10.1% in March, registering the biggest fall since the cost of living crisis began, but food prices still remain elevated at one of the highest levels in 45 years, according to official data.

In a moment of respite for UK Prime Minister Rishi Sunak, the country’s annual inflation rate dropped to a 13-month low of 8.7 per cent in April, from 10.1% in March, registering the biggest fall since the cost of living crisis began, but food prices still remain elevated at one of the highest levels in 45 years, according to official data. The development bringing some respite comes after months of post-pandemic cost-of-living crisis aggravated by war in Ukraine had pushed up energy prices in one of the coldest winters in Europe in recent times. Britain inflation data: What is the reading? According to the UK's Office for National Statistics, the rate of price increases came down from 10.1 per cent in March, and the inflation in April is down under 10 per cent for the first time since August last year. ALSO WATCH | UK inflation falls to 8.7% in April, food prices still remain high × At 8.7 per cent, it was at the lowest level since March last year, when the rate stood at 7.0 per cent. "However, prices in general remain substantially higher than they were this time last year, with annual food price inflation near historic highs," said ONS chief economist Grant Fitzner in an official statement. The rate at which food prices are rising fell for the second month in a row in May but remains ‘incredibly high’, says research firm Kantar. Prices were up by 17.2% from a year ago in the four weeks to the middle of May, down from 17.3% last month, it said. Food price rises are expected to ease further later this year, it added. UK inflation drop: What is the catch? The inflation rate continues to remain above the Bank of England's (BoE) prediction for inflation of 8.4 per cent last month. Britain's annual inflation rate in April was also the highest among the G-7 countries in the Group of Seven rich economies, which include Canada, France, Germany, Italy, Japan and the United States. Meanwhile, the target rate of 2.0 per cent remains very far off for the UK government. Prime Minister Rishi Sunak's government has said that the inflation may drop up to about 5.0 per cent by the end of 2023. “Last month, the rate of inflation fell notably as the large energy price rises seen last year were not repeated... but was offset partially by increases in the cost of second-hand cars and cigarettes,” Fitzner added. UK economy: Inflation numbers come after IMF U-turn The data comes a day after the International Monetary Fund, in a major U-turn on its forecast for the UK economy, said that it expected growth this year just one month after predicting a contraction. Britain's economy is expected to expand 0.4 per cent in 2023, the IMF said in its latest outlook document, which cited weaker energy prices. The IMF ripped up its previous forecast in April for a 0.3-per cent contraction. "The IMF said yesterday we've acted decisively to tackle inflation but although it is positive that it is now in single digits, food prices are still rising too fast," UK finance minister Jeremy Hunt said following the release of inflation data on Wednesday. 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.

PM Rishi Sunak delivers inflation respite for Britain, food prices fall but still remain high

The London School of Economics (LSE) researchers found that average UK shopping bills have increased by an average of £250, with the cost of food increased by a whopping 25% since 2019. And the LSE study said this rise was down to red tape surrounding trade barriers, which are hampering imports.

Brexit leaves a sour taste on grocery bill in UK

The latest inflation rates in the UK gives a sense of ease to Britons as it drops to 8.7%in April from 10.1% in March. The inflation rate stand under 10% for the first time since August last year. However the latest figure released by the Office for National Statistics remain way more than the predicted 8.2% rates. Reports say that the drop took place because the energy rates are slowing down from extreme hikes witnessed an year ago.

UK inflation falls to 8.7% in April, food prices still remain high

A high base effect and moderation in global commodity prices has resulted in Wholesale Price Index (WPI) falling to a near three-year low of&nbsp;(-) 0.92 per cent in April. This is the first instance in nearly three years&nbsp;(July 2020) that the inflation rate based on WPI has slipped into negative territory, according to data released by the&nbsp;Ministry of Commerce and Industry on Monday.

"Decline in the rate of inflation in April 2023 is primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical &amp; chemical products, rubber &amp; plastic products and paper &amp; paper products," the government noted.&nbsp;

According to experts, the trend is expected to continue as the year progresses. The full-year WPI inflation is estimated to remain in the range of one to two per cent.&nbsp;

"High base effect and falling commodity prices will lend downward pressure on WPI inflation this year," Madan Sabnavis, an economist at Bank of Baroda was quoted as saying by Reuters. He added that low commodity prices will also bring down the prices of manufactured goods.&nbsp;

A lower WPI inflation rate could help in pulling retail inflation down with its lagged impact making a significant dent on the core CPI inflation.&nbsp;

The retail inflation in the country eased to 4.7 per cent in April which was an 18-month low, as against 5.7 per cent recorded in the month of March.&nbsp;

It was in July 2020 that WPI last recorded deflation at&nbsp;t (-) 0.25 per cent while the previous low was recorded in June 2020 at&nbsp;&nbsp;(-) 1.81 per cent.&nbsp;

<a href="https://www.wionews.com/videos/from-cars-to-homes-spending-in-india-booms-as-countries-battle-rising-inflation-526322">WATCH |&nbsp;From cars to homes, spending in India booms as other countries battle rising inflation</a>

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&nbsp;

<h2>What is Wholesale Price Index?</h2>

WPI is an important measuring gauge to determine inflation in the country. It represents the price of goods at a wholesale stage i,e when they are sold in bulk and traded between organisations, not the consumers.&nbsp;

<a href="https://www.wionews.com/india-news/rbi-applies-brakes-on-repo-rate-hike-keeps-it-unchanged-at-65-579686">ALSO READ |&nbsp;RBI applies brakes on repo rate hike, keeps it unchanged at 6.5%</a>

Fiscal and monetary policy changes are influenced by changes in&nbsp;WPI and several countries use it as a measure of inflation. It is calculated by finding the difference between the WPI calculated at the start and end of the year. The percentage increase in WPI over a year gives the rate of inflation for that year.&nbsp;

(With inputs from agencies)

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A high base effect and moderation in global commodity prices has resulted in Wholesale Price Index (WPI) falling to a near three-year low of (-) 0.92 per cent in April.

A high base effect and moderation in global commodity prices has resulted in Wholesale Price Index (WPI) falling to a near three-year low of (-) 0.92 per cent in April. This is the first instance in nearly three years (July 2020) that the inflation rate based on WPI has slipped into negative territory, according to data released by the Ministry of Commerce and Industry on Monday. "Decline in the rate of inflation in April 2023 is primarily contributed by fall in prices of basic metals, food products, mineral oils, textiles, non-food articles, chemical & chemical products, rubber & plastic products and paper & paper products," the government noted. According to experts, the trend is expected to continue as the year progresses. The full-year WPI inflation is estimated to remain in the range of one to two per cent. "High base effect and falling commodity prices will lend downward pressure on WPI inflation this year," Madan Sabnavis, an economist at Bank of Baroda was quoted as saying by Reuters. He added that low commodity prices will also bring down the prices of manufactured goods. A lower WPI inflation rate could help in pulling retail inflation down with its lagged impact making a significant dent on the core CPI inflation. The retail inflation in the country eased to 4.7 per cent in April which was an 18-month low, as against 5.7 per cent recorded in the month of March. It was in July 2020 that WPI last recorded deflation at t (-) 0.25 per cent while the previous low was recorded in June 2020 at (-) 1.81 per cent. WATCH | From cars to homes, spending in India booms as other countries battle rising inflation × What is Wholesale Price Index? WPI is an important measuring gauge to determine inflation in the country. It represents the price of goods at a wholesale stage i,e when they are sold in bulk and traded between organisations, not the consumers. ALSO READ | RBI applies brakes on repo rate hike, keeps it unchanged at 6.5% Fiscal and monetary policy changes are influenced by changes in WPI and several countries use it as a measure of inflation. It is calculated by finding the difference between the WPI calculated at the start and end of the year. The percentage increase in WPI over a year gives the rate of inflation for that year. (With inputs from agencies) WATCH WION LIVE HERE:

India: WPI falls into negative for first time since July 2020, govt cites high base effect as the reason

The Italians are finding it hard to afford a plate of their beloved pasta, as soaring prices are not only killing their pockets but also their desire to satiate the dish they revel in.

According to the Washington Post, the average cost of pasta has spiked $2.20 per kilogram in Italy, which is consumed every day by approximately 60 per cent of the population.

And in Siena, a city in Tuscany, pasta jumped from about $1.50 per kg a year ago to $2.37, a 58 per cent increase, consumer-rights group Assoutenti found.

Italian outlet La Repubblica reported that the price of pasta skyrocketed 17.5 per cent over the past year, despite the price of wheat — the main ingredient — falling in recent months. The rate of inflation in Italy is 8.1 per cent, according to the European Central Bank.

The national crisis forced Italy's industry minister Adolfo Urso to convene an emergency meeting of lawmakers, pasta producers, and consumer rights groups in Rome last week on Friday to discuss measures to bring down pasta prices.

After the emergency meeting, the group in a statement clarified that the price rise of pasta was not linked to inflation and asserted that it would cool down eventually by the end of the month.

“Pasta prices are already showing the first, albeit weak, signs of a [decrease], a sign that in the coming months, the cost of pasta will drop significantly,” the statement said, according to CNN.

They said that they would continue to monitor the market closely to protect consumers, and ensure that significant reductions in the cost of energy and raw materials, such as durum wheat, are reflected in the retail price of pasta.

A spokesperson for Urso in a statement said that many producers have provided assurances that increases in pasta prices were only temporary, and had attributed the high prices “to the disposal of inventories [of pasta] made when the cost of raw materials was higher.”

However, experts noted that the supply side issues have been arising due to the Russia-Ukraine conflict, triggering&nbsp;inflation in raw materials and as a result, disrupting&nbsp;the supply chains across Europe.

But the consumer rights groups are also claiming that the present inflation trend is also due to corporate greed.

"There is no justification for the increases other than pure speculation on the part of the large food groups who also want to supplement their budgets with extra profits," Furio Truzzi, the president of the consumer rights group, Assoutenti, told the Washington Post.

(With inputs from agencies)

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The Italians are finding it hard to afford a plate of their beloved pasta, as soaring prices are not only killing their pockets but also their desire to satiate the dish they revel in.

The Italians are finding it hard to afford a plate of their beloved pasta, as soaring prices are not only killing their pockets but also their desire to satiate the dish they revel in. According to the Washington Post, the average cost of pasta has spiked $2.20 per kilogram in Italy, which is consumed every day by approximately 60 per cent of the population. And in Siena, a city in Tuscany, pasta jumped from about $1.50 per kg a year ago to $2.37, a 58 per cent increase, consumer-rights group Assoutenti found. Italian outlet La Repubblica reported that the price of pasta skyrocketed 17.5 per cent over the past year, despite the price of wheat — the main ingredient — falling in recent months. The rate of inflation in Italy is 8.1 per cent, according to the European Central Bank. The national crisis forced Italy's industry minister Adolfo Urso to convene an emergency meeting of lawmakers, pasta producers, and consumer rights groups in Rome last week on Friday to discuss measures to bring down pasta prices. After the emergency meeting, the group in a statement clarified that the price rise of pasta was not linked to inflation and asserted that it would cool down eventually by the end of the month. “Pasta prices are already showing the first, albeit weak, signs of a [decrease], a sign that in the coming months, the cost of pasta will drop significantly,” the statement said, according to CNN. They said that they would continue to monitor the market closely to protect consumers, and ensure that significant reductions in the cost of energy and raw materials, such as durum wheat, are reflected in the retail price of pasta. A spokesperson for Urso in a statement said that many producers have provided assurances that increases in pasta prices were only temporary, and had attributed the high prices “to the disposal of inventories [of pasta] made when the cost of raw materials was higher.” However, experts noted that the supply side issues have been arising due to the Russia-Ukraine conflict, triggering inflation in raw materials and as a result, disrupting the supply chains across Europe. But the consumer rights groups are also claiming that the present inflation trend is also due to corporate greed. "There is no justification for the increases other than pure speculation on the part of the large food groups who also want to supplement their budgets with extra profits," Furio Truzzi, the president of the consumer rights group, Assoutenti, told the Washington Post. (With inputs from agencies) WATCH WION LIVE HERE

Pasta crisis grips Italy as price skyrockets 18%, govt says ‘monitoring situation’

In Argentina, the annual inflation rate has soared to 104.3 percent. The nation's official statistics agency revealed the astounding high on Friday. Reuters reports that this is one of the highest inflation rates in the world. Argentina's soaring prices have badly dented people's salaries and have pushed up poverty in the nation to 40 percent.

Argentina faces economic crisis as annual inflation reaches 104%

Just months ago, Bangladesh was grabbing headlines as an economic miracle. Then all of a sudden, its growth story took a hit. Economists have talked of Bangladesh going the Sri Lanka-Pakistan way, stressing though that the situation is not irreversible. Why is Bangladesh's Economy in a nosedive mode? Watch this report.

Bangladesh success story fizzles, booming economy slows | Inside South Asia

UK Lawmakers launch an investigation into food-supply chain as food price inflation hits 46-year high. Cross-party committee will examine overall profits and risks in the industry while EFRA committee examines impact of external factors on supply chain.

UK cost of living crisis: Lawmakers launch probe into the food inflation crisis

U.S. Inflation eased slightly in April but still remained elevated. Moderating price pressures is good news for the U.S. As that gives the federal reserve room to pause. The consumer price index rose by a below-forecast 4.9% from a year earlier, the first sub-5% reading in two years.

US inflation cooler than expected in April

Inflation in the U.S eased slightly in April but still remained elevated, media reports said on Wednesday.

Moderating price pressures is good news for the US as that gives the Federal Reserve room to pause.

The consumer price index (CPI) rose by a below-forecast 4.9 percent from a year earlier, the first sub-5 percent reading in two years. Notably, economists had forecast the rate to be 5 percent.

The annual CPI peaked at 9.1 percent last June, posting its biggest increase since November 1981, and is subsiding as last year’s initial surge in energy prices following Russia’s invasion of Ukraine drops out of the calculation.

But the reactions to the latest US inflation report were mixed.&nbsp;

For some analysts, the inflation report does not give a clear signal on Federal Reserve's rate path.

“Today’s consumer inflation report supports the case for the Fed to seriously contemplate a pause in rate hikes in June, but does not support any near-term rate cuts,” said Scott Anderson, chief economist at Bank of the West in San Francisco.

Inflation has definitely moderated from overheated rates last year. But it still remains elevated and above the Federal Reserve's target of 2 percent.

“On balance, inflation is still too high and it is not going to fall back to 2% if it increases 0.4% a month,” Chris Low, chief economist at FHN Financial in New York, told Reuters.&nbsp;

The Federal Reserve's dichotomy is whether to look at inflation and hike rates or focus on the banking crisis.&nbsp;The aggressive rate hikes over the past year have hurt the banking industry heavily. But the central bank had no choice but to list rates because of soaring inflation.

Now, the domino effect of banks collapsing is keeping the US central bank on its toes.

(With agency inputs)&nbsp;

Inflation in the U.S eased slightly in April but still remained elevated, media reports said on Wednesday. Moderating price pressures is good news for the US as that gives the Federal Reserve room to pause.

Inflation in the U.S eased slightly in April but still remained elevated, media reports said on Wednesday. Moderating price pressures is good news for the US as that gives the Federal Reserve room to pause. The consumer price index (CPI) rose by a below-forecast 4.9 percent from a year earlier, the first sub-5 percent reading in two years. Notably, economists had forecast the rate to be 5 percent. The annual CPI peaked at 9.1 percent last June, posting its biggest increase since November 1981, and is subsiding as last year’s initial surge in energy prices following Russia’s invasion of Ukraine drops out of the calculation. But the reactions to the latest US inflation report were mixed. For some analysts, the inflation report does not give a clear signal on Federal Reserve's rate path. “Today’s consumer inflation report supports the case for the Fed to seriously contemplate a pause in rate hikes in June, but does not support any near-term rate cuts,” said Scott Anderson, chief economist at Bank of the West in San Francisco. Inflation has definitely moderated from overheated rates last year. But it still remains elevated and above the Federal Reserve's target of 2 percent. “On balance, inflation is still too high and it is not going to fall back to 2% if it increases 0.4% a month,” Chris Low, chief economist at FHN Financial in New York, told Reuters. The Federal Reserve's dichotomy is whether to look at inflation and hike rates or focus on the banking crisis. The aggressive rate hikes over the past year have hurt the banking industry heavily. But the central bank had no choice but to list rates because of soaring inflation. Now, the domino effect of banks collapsing is keeping the US central bank on its toes. (With agency inputs)

US inflation eases in April: Markets see only tiny possibility of June rate hike

The Bank of England is forecast Thursday to deliver its twelfth straight interest rate hike as it seeks to dampen high inflation but risks worsening a cost-of-living crisis. It is expected to lift the key rate by 25 basis points to 4.5 percent, matching the previous March hike and taking borrowing costs to a level last seen in 2008 during the early stages of the global financial crisis.

Inflation-fighting Bank of England set for 12th straight interest rate hike

The Australian government has announced a $10 billion package over four years to ease the financial burden of its citizens due to rising living costs.

The relief plan, announced as part of the country annual budget, aims to provide financial assistance to families and businesses without stoking inflation, which is still at a near 30-year high of 7 percent despite a slight decline in the first quarter.

The financial assistance will benefit over 5 million low-income families, small businesses, and pensioners struggling with high power bills. This aid is particularly crucial as Australia's energy prices have been increasing, leading to a surge in power bills.

The government has been careful with its spending to prevent inflationary pressures, unlike the Reserve Bank of Australia (RBA), which surprised traders by raising rates by 0.25 percent&nbsp;to 3.85 percent&nbsp;last week.&nbsp;

The RBA has warned that inflation risks are on the rise due to low productivity growth, increasing energy prices, and surging rents. The government's latest relief measures come after it set aside $8 billion for wage rises for aged care workers over four years.

Inflation remains a concern for policymakers, and the the central bank's decision to raise rates has been met with mixed reactions from traders.

While some have called the rate hike&nbsp;premature, given that inflation has not yet shown signs of being sustained at the current level. Others, however, called the move necessary, arguing that it will prevent inflation expectations from becoming entrenched, leading to a more prolonged inflationary period.

The financial package and the surprise rate hike come&nbsp;at a time when the Australian economy faces the threat of recession, which is partly blamed on the central bank's aggressive rate hikes.

While interest rate hikes have been used across the world to cool inflation down, they also deaccelerate economic growth.&nbsp;With the surprise rate cut in May, there is a 45 percent probability of Australia slipping into a recession this year, say media reports.&nbsp;

The Australian government has announced a $10 billion package over four years to ease the financial burden of its citizens due to rising living costs. The relief plan, announced as part of the country annual budget, aims to provide financial assistance to families and businesses without stoking inflation, which is still at a near 30-year high of 7 percent despite a slight decline in the first quarter.

The Australian government has announced a $10 billion package over four years to ease the financial burden of its citizens due to rising living costs. The relief plan, announced as part of the country annual budget, aims to provide financial assistance to families and businesses without stoking inflation, which is still at a near 30-year high of 7 percent despite a slight decline in the first quarter. The financial assistance will benefit over 5 million low-income families, small businesses, and pensioners struggling with high power bills. This aid is particularly crucial as Australia's energy prices have been increasing, leading to a surge in power bills. The government has been careful with its spending to prevent inflationary pressures, unlike the Reserve Bank of Australia (RBA), which surprised traders by raising rates by 0.25 percent to 3.85 percent last week. The RBA has warned that inflation risks are on the rise due to low productivity growth, increasing energy prices, and surging rents. The government's latest relief measures come after it set aside $8 billion for wage rises for aged care workers over four years. Inflation remains a concern for policymakers, and the the central bank's decision to raise rates has been met with mixed reactions from traders. While some have called the rate hike premature, given that inflation has not yet shown signs of being sustained at the current level. Others, however, called the move necessary, arguing that it will prevent inflation expectations from becoming entrenched, leading to a more prolonged inflationary period. The financial package and the surprise rate hike come at a time when the Australian economy faces the threat of recession, which is partly blamed on the central bank's aggressive rate hikes. While interest rate hikes have been used across the world to cool inflation down, they also deaccelerate economic growth. With the surprise rate cut in May, there is a 45 percent probability of Australia slipping into a recession this year, say media reports.

Australia's budget to provide $10 billion financial package amid record-high inflation

The IMF stated that due to inflation and the global economic slowdown, Bangladesh's foreign reserves and economic growth are in jeopardy. This declaration follows the IMF's just finished visits to Bangladesh in January of this year.

IMF: Inflation, global slowdown risks to Bangladesh and its economy

All is not well in Pakistan. The Pakistani rupee has dethroned Sri Lanka as the worst performing currency in South Asia due to Pakistan's severe inflation, according to a report from our bureau chief in Pakistan, Anas Malit. The situation has gotten much worse for the average person.

Pakistan: Amenities double in price, fuel rates make cargo transport costly

Pakistan's economy appears to be worsening with every passing day. The country has now overtaken Sri Lanka, which too is suffering severe economic crisis and is gradually showing signs of recovery.

Pakistan overtakes Sri Lanka with weakest currency

The US Federal Reserve raised its interest rates by a quarter of a percentage point for a 10th&nbsp;consecutive time on Wednesday (May 3), while indicating a pause in further increases. This comes amid recent bank failures as well as Congress’ ongoing deadlock over the debt ceiling issue.&nbsp;

The central bank has been aggressively raising interest rates since March last year in a bid to control the US’ soaring inflation and pushed its benchmark overnight interest rate somewhere in the 5.00 per cent and 5.25 per cent range. In the statement, the Fed also said that it would “take into account” the impact of tighter monetary policy and “economic and financial developments” going forward.

During the press conference, Fed Chair Jerome Powell said that the central bank still views inflation as too high and that it remains concerned by high price pressures. However, it no longer “anticipates” further hikes and monitors the incoming data to make the decision if more hikes “may be appropriate.”

Therefore, Powell has said that it is too soon to say if the rate-hike cycle is over as the decisions made by officials are taking on a “meeting-by-meeting” basis, adding, “we are prepared to do more&nbsp;with rate rises if needed.”&nbsp;

The decision about the recent hike came after the policy-setting Federal Open Market Committee’s (FOMC) recent meeting and was in line with the expectations of analysts and traders.&nbsp;

Notably, the recent statement by the central bank marks a departure from the last rate announcement where policymakers had said that they expect “additional policy firming” to rein in inflation. This time around, the Fed’s ease of guidance suggests that the economy is somewhat beginning to cool.&nbsp;

“If you add up all the tightening that's going on through various channels, we feel like we're getting close or are maybe even there,” said Powell, as quoted by Reuters, about monetary policy. The Fed chair also pushed back on market expectations of rate cuts this year adding, “We on the committee have a view that inflation is going to come down not so quickly, it will take some time.”&nbsp;

It is worth noting that the Fed’s policy rate, this time around, is somewhat close to where it was on the eve of the 2008 financial crisis. The rate hikes have more than doubled mortgage rates, elevated the costs of auto loans, credit card borrowing and business loans and heightened the risk of a recession, reported The Associated Press.&nbsp;

(With inputs from agencies)&nbsp; 
 
 
&nbsp;

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The US Federal Reserve raised its interest rates by a quarter of a percentage point for a 10th consecutive time on Wednesday (May 3), while indicating a pause in further increases.

The US Federal Reserve raised its interest rates by a quarter of a percentage point for a 10th consecutive time on Wednesday (May 3), while indicating a pause in further increases. This comes amid recent bank failures as well as Congress’ ongoing deadlock over the debt ceiling issue. The central bank has been aggressively raising interest rates since March last year in a bid to control the US’ soaring inflation and pushed its benchmark overnight interest rate somewhere in the 5.00 per cent and 5.25 per cent range. In the statement, the Fed also said that it would “take into account” the impact of tighter monetary policy and “economic and financial developments” going forward. During the press conference, Fed Chair Jerome Powell said that the central bank still views inflation as too high and that it remains concerned by high price pressures. However, it no longer “anticipates” further hikes and monitors the incoming data to make the decision if more hikes “may be appropriate.” Therefore, Powell has said that it is too soon to say if the rate-hike cycle is over as the decisions made by officials are taking on a “meeting-by-meeting” basis, adding, “we are prepared to do more with rate rises if needed.” The decision about the recent hike came after the policy-setting Federal Open Market Committee’s (FOMC) recent meeting and was in line with the expectations of analysts and traders. Notably, the recent statement by the central bank marks a departure from the last rate announcement where policymakers had said that they expect “additional policy firming” to rein in inflation. This time around, the Fed’s ease of guidance suggests that the economy is somewhat beginning to cool. “If you add up all the tightening that's going on through various channels, we feel like we're getting close or are maybe even there,” said Powell, as quoted by Reuters, about monetary policy. The Fed chair also pushed back on market expectations of rate cuts this year adding, “We on the committee have a view that inflation is going to come down not so quickly, it will take some time.” It is worth noting that the Fed’s policy rate, this time around, is somewhat close to where it was on the eve of the 2008 financial crisis. The rate hikes have more than doubled mortgage rates, elevated the costs of auto loans, credit card borrowing and business loans and heightened the risk of a recession, reported The Associated Press. (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.

US Federal Reserve announces quarter-point interest rate hike, signals potential pause

Amid soaring inflation in the country, the Iranian parliament on Sunday voted in an impeachment session to remove industry minister Reza Fatemi Amin. Parliament Speaker Mohammad Bagher Ghalibaf announced the results during a session broadcast live on state television.

Amid soaring inflation in the country, the Iranian parliament on Sunday voted in an impeachment session to remove industry minister Reza Fatemi Amin. Parliament Speaker Mohammad Bagher Ghalibaf announced the results during a session broadcast live on state television. Amin failed to garner enough votes to save his spot as 162 MPs voted in favour of his removal while 102 against. This was the second instance an impeachment motion had been brought against him. In November last year, Amin managed to stave off the challenge after securing 182 votes. Parliamentarians, who voted to remove industry, mines and trade minister Reza Fatemi-Amin, accused him of failing to control "skyrocketing prices of automobiles and the rising costs of industrial production" and lambasted him for mismanagement. Ahead of the vote, President Ebrahim Raisi batted for him and urged "stability in the management of this ministry". Even Amin argued, "The automobile industry is based on assembly and domestication, so it has problems with the ups and downs of sanctions." According to reports, the major reason that contributed to Amin's downfall was supreme leader, Ayatollah Ali Khamenei, who has the final say in major policies criticising the high prices and low quality of home-made products including cars. Rial plunges to historic low Earlier this year in February, the Iranian currency, the rial plunged to its lowest with the US dollar fetching as much as 601,500 rials on Iran's unofficial market. At the time, the Iranian authorities blamed the currency's fall on "the enemies' plot" to destabilise the Islamic Republic. Reports also attributed this drop to the country’s increasing international isolation over its human rights violations and reportedly supplying drones to Russia. ALSO READ | Iran says it has developed long-range cruise missile, triggers concerns in West Iran’s economic conditions have also contributed to widespread anger among its citizens. Couple that with the protests that started in the aftermath of 22-year-old Kurdish woman Mahsa Amini's death, the public has been overly critical of the government. Amid the rise in prices and economic hardship, Iranians have turned to the US dollar or gold to protect their savings. WATCH | Shifting ties in West Asia | The West Asia Post × According to reports, protests have continued in parts of Iran despite the government’s harsh crackdown. Meanwhile, Tehran has also recently faced pressure from the West after accusations of supplying drones to Russia for using it amid its conflict with Ukraine, a claim that Iran has denied. ALSO READ | Iranian rial plunges to record low amid anti-government protests, international isolation (With inputs from agencies) WATCH WION LIVE HERE

Iranian industry minister impeached over rising inflation, mismanagement

The Department of Census and Statistics yesterday said that inflation in Colombo has dropped to 35.3 percent in April. Sri Lanka’s headline inflation, as measured by the Year-on-Year (Y-O-Y) change in the Colombo Consumer Price Index (CCPI), significantly eased to 35.3% in April 2023, in comparison to March 2023, the department said.

Sri Lanka’s inflation drops further to 35.3% amid economic crisis in the month of April

The World Bank has released a new report stating that food, energy, and metals prices will continue to drop in 2023.

World Bank's Report: Commodity prices to fall

According to South Africa's national statistics agency, the country's inflation rate in March increased to an all-time high of 7.1% from 7.0% in February, marking the highest level in ten years.

South Africa: March inflation marks the second consecutive acceleration

According to recent study, the cost of British essential foods like cheddar cheese, white bread, and porridge oats has increased dramatically since last year. The highest price increase was for cheddar cheese, which went up by an average of 28.3% across Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury's, Tesco, and Waitrose. According to Which?, the overall rate of food inflation increased further in March, rising to 17.2%% from 16.5% in February.

Prices of British food staples soar by up to 80%, biggest hike on white breads oats

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