Inflation in Pakistan has broken a 50-year record. It has now touched 31.5%. What explains this? Molly Gambhir brings you a report.

Gravitas: Inflation breaks 50-year record in Pakistan

Week after week we have been reporting on the abysmal state of affairs in Pakistan with the country's economy tottering on the brink of collapse and if you needed more evidence of how desperate and anguished the Pakistani citizens are here it is in a viral video. A Pakistani man says "Allah! Give us Modi, so that he can fix our country" he wants the Indian Prime Minister to govern Pakistan. Yes, that's how bad things really are in the country. Neha Khanna tells you more in this report.

Inside South Asia: Pakistan economy on the brink

The Iranian currency, the rial, hit a new record low against the United States dollar, on Sunday (February 26) with nearly 600,000 rials to the dollar on the unofficial market. This comes as the country is reportedly in the midst of witnessing anti-government protests and for the first time is facing the impact of the breakdown of the 2015 nuclear deal. Furthermore, reports have also attributed this drop to the country’s increasing international isolation over its human rights violations and reportedly supplying drones to Russia.&nbsp;

On the unofficial market, a US dollar was worth as much as 601,500 rials when compared to the day prior when it was able to fetch at least 575,000, as per Reuters. The dire economic conditions have forced Iranians to form long lines outside exchange offices in recent days hoping to receive increasingly scarce dollars as the local currency has deteriorated.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/iran-saudi-arabia-close-on-restoration-of-bilateral-ties-after-latest-talks-552401">Iran-Saudi Arabia close on restoration of bilateral ties after latest talks</a>

According to Tehran’s statistics centre, inflation soared to 53.4 per cent in January which is up from 41.4 per cent in 2021. Amid the rise in prices and economic hardship, Iranians have turned to the US dollar or gold to protect their savings. Additionally, in a bid to calm the market and ease demand for the US currency, on Saturday, the central bank also lifted a ban on private exchange shops selling hard currencies in Iran.&nbsp;

To put this amount into perspective, the Iranian rial was trading at 32,000 rials to the dollar when the 2015 nuclear accord was signed, reported the Associated Press, which had eased the sanctions on Tehran for limiting its nuclear activities.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/iran-says-it-has-developed-long-range-cruise-missile-565701">Iran says it has developed long-range cruise missile, triggers concerns in West</a>

However, when former US President Donald Trump had withdrawn from the agreement and the sanctions on Iran were restored it affected the country’s economy. The move has since led to an increase in Iran’s production of Uranium, as per the United Nations nuclear watchdog.&nbsp;

Iran’s economic conditions have also contributed to widespread anger among its citizens, as per reports, while the country’s officials have blamed it on “the enemies’ plot” to destabilise the Islamic Republic. The claim was made in the context of the months of nationwide protests after the death of&nbsp;Mahsa Amini after she was detained by authorities for her alleged breach of the dress code.

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/iran-executes-second-protester-in-less-than-a-week-rights-group-claim-450-killed-in-protests-542169">Iran executes second protester in less than a week; rights group claims 450 killed in protests</a>

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.&nbsp;

(With inputs from agencies)&nbsp; 
 
 
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The Iranian currency, the rial, hit a new record low against the United States dollar, on Sunday (February 26) with nearly 600,000 rials to the dollar on the unofficial market.

The Iranian currency, the rial, hit a new record low against the United States dollar, on Sunday (February 26) with nearly 600,000 rials to the dollar on the unofficial market. This comes as the country is reportedly in the midst of witnessing anti-government protests and for the first time is facing the impact of the breakdown of the 2015 nuclear deal. Furthermore, reports have also attributed this drop to the country’s increasing international isolation over its human rights violations and reportedly supplying drones to Russia. On the unofficial market, a US dollar was worth as much as 601,500 rials when compared to the day prior when it was able to fetch at least 575,000, as per Reuters. The dire economic conditions have forced Iranians to form long lines outside exchange offices in recent days hoping to receive increasingly scarce dollars as the local currency has deteriorated. ALSO READ | Iran-Saudi Arabia close on restoration of bilateral ties after latest talks According to Tehran’s statistics centre, inflation soared to 53.4 per cent in January which is up from 41.4 per cent in 2021. Amid the rise in prices and economic hardship, Iranians have turned to the US dollar or gold to protect their savings. Additionally, in a bid to calm the market and ease demand for the US currency, on Saturday, the central bank also lifted a ban on private exchange shops selling hard currencies in Iran. To put this amount into perspective, the Iranian rial was trading at 32,000 rials to the dollar when the 2015 nuclear accord was signed, reported the Associated Press, which had eased the sanctions on Tehran for limiting its nuclear activities. ALSO READ | Iran says it has developed long-range cruise missile, triggers concerns in West However, when former US President Donald Trump had withdrawn from the agreement and the sanctions on Iran were restored it affected the country’s economy. The move has since led to an increase in Iran’s production of Uranium, as per the United Nations nuclear watchdog. Iran’s economic conditions have also contributed to widespread anger among its citizens, as per reports, while the country’s officials have blamed it on “the enemies’ plot” to destabilise the Islamic Republic. The claim was made in the context of the months of nationwide protests after the death of Mahsa Amini after she was detained by authorities for her alleged breach of the dress code. ALSO READ | Iran executes second protester in less than a week; rights group claims 450 killed in protests 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. (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.

Iranian rial plunges to record low amid anti-government protests, international isolation

A CNN report, citing two US officials, says that Russia carried out the test launch of an intercontinental ballistic missile (ICBM) while President Joe Biden was in Kyiv, but it reportedly failed. The officials added that Russia had notified the United States about the launch in advance through deconfliction lines. Another official said that the test posed no risk to the United States and Washington did not see it as an escalation of any sort.&nbsp;

Russia tested the heavy SARMAT missile, which is known as the Satan II in the West. The missile is capable of delivering multiple nuclear warheads and Moscow had already tested it successfully once earlier. However, this time around it seemed to have failed, the US officials said.&nbsp;

Russian President Vladimir Putin did not mention the ICBM test in his Tuesday's State of the Nation address. US officials believe that he would have definitely mentioned it had it been a success.&nbsp;

In his speech&nbsp;that lasted one hour and 45 minutes, Putin slammed the US for escalating the Ukraine situation. He said that Russia was only trying to defend itself and that the US was making the situation worse.&nbsp;

Putin also announced that Russia is suspending the&nbsp;New START nuclear arms reduction treaty, although the foreign ministry later said that they will continue to observe&nbsp;restrictions on nuclear warheads. 
 
The US and Russia have been communicating through several different channels this week for deconfliction purposes as the US officials had also notified the Russians on Sunday night, hours before Biden’s visit to Kyiv, that the president would be visiting the Ukrainian capital. 
&nbsp;

(With inputs from agencies)

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A CNN report, citing two US officials, says that Russia carried out the test launch of an intercontinental ballistic missile (ICBM) while President Joe Biden was in Kyiv, but it reportedly failed.

A CNN report, citing two US officials, says that Russia carried out the test launch of an intercontinental ballistic missile (ICBM) while President Joe Biden was in Kyiv, but it reportedly failed. The officials added that Russia had notified the United States about the launch in advance through deconfliction lines. Another official said that the test posed no risk to the United States and Washington did not see it as an escalation of any sort. Russia tested the heavy SARMAT missile, which is known as the Satan II in the West. The missile is capable of delivering multiple nuclear warheads and Moscow had already tested it successfully once earlier. However, this time around it seemed to have failed, the US officials said. Russian President Vladimir Putin did not mention the ICBM test in his Tuesday's State of the Nation address. US officials believe that he would have definitely mentioned it had it been a success. In his speech that lasted one hour and 45 minutes, Putin slammed the US for escalating the Ukraine situation. He said that Russia was only trying to defend itself and that the US was making the situation worse. Putin also announced that Russia is suspending the New START nuclear arms reduction treaty, although the foreign ministry later said that they will continue to observe restrictions on nuclear warheads. The US and Russia have been communicating through several different channels this week for deconfliction purposes as the US officials had also notified the Russians on Sunday night, hours before Biden’s visit to Kyiv, that the president would be visiting the Ukrainian capital. (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.

Toyota accedes to unions' demands, set to provide biggest wage hike in two decades

The cost of living crisis continues to impact the British economy and common people despite indications that the inflationary pressures might have been easing.&nbsp;

Recent trends show how common&nbsp;people are suffering. Local reports have mentioned that prices for olive oil, sugar and low-fat milk have surged with food costs.&nbsp;

A report by Bloomberg highlighted the impact of the overall rate of inflation on the price of a full English breakfast. The report states that it will increase.&nbsp;

Referring to its&nbsp;Breakfast Index, the report stated that the average cost of ingredients to make a traditional fry-up soared by more than 22 per cent from a year earlier in January.&nbsp;

The Office for National Statistics (ONS) said in a statement that the UK Consumer Prices Index (CPI) fell to 10.1 per cent in January compared with a rate of 10.5 per cent in December.

Matt Hood, who is managing director of Co-op Food, said prices continued to rise in January as costs for grocers did, which made it "incredibly tough".&nbsp;

He told the BBC's Today programme:&nbsp;"Inflation is the thing that keeps us up at night. Believe it or not we as retailers are trying our hardest not to flow it all through to our customers."&nbsp;

WATCH |&nbsp;Russia- Ukraine war: One year into war, who stands where?

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For the unversed, this comes as the official data showed on Wednesday that the annual inflation dropped further last month on easing transport costs, however, it remains above 10 per cent.&nbsp;

Sharon Graham, general secretary at major British union Unite, said:&nbsp;"These latest figures show the cost-of-living crisis is still pummelling workers' pay packets. Unite will continue to fight for and win better wages in the face of this crisis," she added in a statement.&nbsp;

(With inputs from agencies)

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The cost of living crisis continues to impact the British economy and common people despite indications that the inflationary pressures might have been easing. Recent trends show how common people are suffering.

The cost of living crisis continues to impact the British economy and common people despite indications that the inflationary pressures might have been easing. Recent trends show how common people are suffering. Local reports have mentioned that prices for olive oil, sugar and low-fat milk have surged with food costs. A report by Bloomberg highlighted the impact of the overall rate of inflation on the price of a full English breakfast. The report states that it will increase. Referring to its Breakfast Index, the report stated that the average cost of ingredients to make a traditional fry-up soared by more than 22 per cent from a year earlier in January. The Office for National Statistics (ONS) said in a statement that the UK Consumer Prices Index (CPI) fell to 10.1 per cent in January compared with a rate of 10.5 per cent in December. Matt Hood, who is managing director of Co-op Food, said prices continued to rise in January as costs for grocers did, which made it "incredibly tough". He told the BBC's Today programme: "Inflation is the thing that keeps us up at night. Believe it or not we as retailers are trying our hardest not to flow it all through to our customers." WATCH | Russia- Ukraine war: One year into war, who stands where? × For the unversed, this comes as the official data showed on Wednesday that the annual inflation dropped further last month on easing transport costs, however, it remains above 10 per cent. Sharon Graham, general secretary at major British union Unite, said: "These latest figures show the cost-of-living crisis is still pummelling workers' pay packets. Unite will continue to fight for and win better wages in the face of this crisis," she added in a statement. (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 cost of living crisis: Inflation retreats further, remains above 10%

The world's biggest food group, Nestle, is set to hike prices this year. The chief executive officer of the group has said that the price surge is necessary to offset the impact of increased commodity costs. Consumer inflation is at a record high in many countries following the impact of the Ukraine war and the pandemic. The global supply chain logjams, because of Covid, were further aggravated by Russia's invasion of Ukraine last year, which led to a shortage of essentials in many parts of the world.

The multinational food and drink processing conglomerate is known for its widely consumed brands, such as Maggi instant noodles, Nestle coffee and KitKat chocolate bars. Prices were hiked last year but that could not fully tackle the increased costs for ingredients on margins, as per reports. In 2022, the company's reported sales increased 8.4 per cent to 94.4 billion Swiss francs ($102.31 billion).

Many consumer goods makers, including Unilever, have been increasing prices to deal with the inflation aftermath. Amid increased pressure on margins and profitability, the surge is set to continue this year.&nbsp;

Nestle Chief Executive Mark Schneider made the latest announcement - which came after the corporation missed its 2022 profit market forecasts - on Thursday (February 16). "Our gross margin is down about 260 basis points - that is massive. That is after all the pricing we have done in 2022," Schneider told reporters. &nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/pakistanis-struggle-with-skyrocketing-milk-and-chicken-prices-as-inflation-tops-48-year-high-561693">Pakistanis struggle with skyrocketing milk and chicken prices as inflation tops 48-year high</a>

"Last year brought many challenges and tough choices for families, communities and businesses. Inflation surged to unprecedented levels, cost-of-living pressures intensified and the effect of geopolitical tensions were felt around the world," he further underlined.&nbsp;

(With inputs from agencies)

 
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The world's biggest food group, Nestle, is set to hike prices this year. The chief executive officer of the group has said that the price surge is necessary to offset the impact of increased commodity costs.

The world's biggest food group, Nestle, is set to hike prices this year. The chief executive officer of the group has said that the price surge is necessary to offset the impact of increased commodity costs. Consumer inflation is at a record high in many countries following the impact of the Ukraine war and the pandemic. The global supply chain logjams, because of Covid, were further aggravated by Russia's invasion of Ukraine last year, which led to a shortage of essentials in many parts of the world. The multinational food and drink processing conglomerate is known for its widely consumed brands, such as Maggi instant noodles, Nestle coffee and KitKat chocolate bars. Prices were hiked last year but that could not fully tackle the increased costs for ingredients on margins, as per reports. In 2022, the company's reported sales increased 8.4 per cent to 94.4 billion Swiss francs ($102.31 billion). Many consumer goods makers, including Unilever, have been increasing prices to deal with the inflation aftermath. Amid increased pressure on margins and profitability, the surge is set to continue this year. Nestle Chief Executive Mark Schneider made the latest announcement - which came after the corporation missed its 2022 profit market forecasts - on Thursday (February 16). "Our gross margin is down about 260 basis points - that is massive. That is after all the pricing we have done in 2022," Schneider told reporters. Also read: Pakistanis struggle with skyrocketing milk and chicken prices as inflation tops 48-year high "Last year brought many challenges and tough choices for families, communities and businesses. Inflation surged to unprecedented levels, cost-of-living pressures intensified and the effect of geopolitical tensions were felt around the world," he further underlined. (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.

KitKat, other Nestle products set to get costlier. Details here

UK's annual inflation rate dropped further last month, official data showed on Wednesday (February 15). However, it still remained above 10 per cent. This has potential to prolong cost-of-living crisis that has sparked huge strikes.

The UK Consumer Prices Index (CPI) fell to 10.1 percent in January compared with a rate of 10.5 percent in December, the Office for National Statistics (ONS) said in a statement.&nbsp;

Inflation around the world is easing after striking the highest levels in decades last year as the invasion of Ukraine by Russia fuelled energy and food prices.&nbsp;

The news sent the pound diving 1.5 percent to $1.1990 in afternoon trade as dealers bet on less aggressive monetary policy from the Bank of England (BoE).&nbsp;

In turn, that helped push London's benchmark FTSE 100 index of top companies to a record peak above 8,000 points.&nbsp;

The struggling pound boosts London-listed multinationals whose earnings are in dollars.&nbsp;

In October, the inflation in UK was above 11 per cent. The high inflation over months has eroded the value of wages. Britain is currently facing its biggest strikes by public and private sector workers in more than a decade.&nbsp;

"These latest figures show the cost-of-living crisis is still pummelling workers' pay packets," said Sharon Graham, general secretary at major British union Unite.&nbsp;

"Unite will continue to fight for and win better wages in the face of this crisis," she added in a statement.&nbsp;

A separate measure of UK inflation -- the retail prices index -- was unchanged at 13.4 percent in January.&nbsp;

(With inputs from agencies)

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UK's annual inflation rate dropped further last month, official data showed on Wednesday (February 15). However, it still remained above 10 per cent. This has potential to prolong cost-of-living crisis that has sparked huge strikes.

UK's annual inflation rate dropped further last month, official data showed on Wednesday (February 15). However, it still remained above 10 per cent. This has potential to prolong cost-of-living crisis that has sparked huge strikes. The UK Consumer Prices Index (CPI) fell to 10.1 percent in January compared with a rate of 10.5 percent in December, the Office for National Statistics (ONS) said in a statement. Inflation around the world is easing after striking the highest levels in decades last year as the invasion of Ukraine by Russia fuelled energy and food prices. The news sent the pound diving 1.5 percent to $1.1990 in afternoon trade as dealers bet on less aggressive monetary policy from the Bank of England (BoE). In turn, that helped push London's benchmark FTSE 100 index of top companies to a record peak above 8,000 points. The struggling pound boosts London-listed multinationals whose earnings are in dollars. In October, the inflation in UK was above 11 per cent. The high inflation over months has eroded the value of wages. Britain is currently facing its biggest strikes by public and private sector workers in more than a decade. "These latest figures show the cost-of-living crisis is still pummelling workers' pay packets," said Sharon Graham, general secretary at major British union Unite. "Unite will continue to fight for and win better wages in the face of this crisis," she added in a statement. A separate measure of UK inflation -- the retail prices index -- was unchanged at 13.4 percent in January. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

UK inflation eases, but stays above 10 per cent

The European Commission (EC), on Monday (February 13), raised its growth forecast for the eurozone this year and also expects inflation to be lower than previously estimated at the end of 2022. The expected GDP for the eurozone was raised by 0.9 per cent which was up from the previously predicted 0.3 per cent. Additionally, the eurozone might also dodge recession this year after high levels of gas storage helped ease the energy crisis and labour markets continue to hold up, said the EC.&nbsp;

The EU’s executive arm released the new winter forecasts which show that the 20 countries which use the euro referred to as the ‘eurozone’ will narrowly avoid the technical recession which was expected last year in November as the growth since was 0.1 per cent quarter-on-quarter. Furthermore, the wider European Union is expected to grow by 0.8 per cent from the previously predicted 0.3 per cent, said the EC.&nbsp;

“Almost one year after Russia launched its war of aggression against Ukraine, the EU economy is on a better footing than expected in autumn”, said the commission, on Monday. They added, “Inflation appears to have peaked and favourable developments in energy markets foreshadow further forceful declines.”

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/eurozone-inflation-hits-record-as-gas-crunch-looms-493665">Eurozone inflation hits record, as gas crunch looms</a>

This also comes as the wholesale gas prices have fallen “below pre-war levels” which has been attributed to the above-seasonal average levels of gas storage. The commission also said that the “forecast crucially hinges on the purely technical assumption that Russia's aggression of Ukraine will not escalate”.&nbsp;

Furthermore, the EU executive arm in Brussels while announcing the forecast said, “Both areas are now set to narrowly avoid the technical recession that was anticipated for the turn of the year. The forecast also slightly lowers the projections for inflation for both 2023 and 2024.” Notably, the growth forecast for 2024 remains unchanged with 1.5 per cent for the eurozone and 1.6 per cent for the EU.&nbsp;

The estimates also show that all EU states are expected to witness growth this year except Sweden which might contract by 0.8 per cent as the country is also facing a recession along with Denmark. Whereas, Germany the region’s biggest economy and Austria have also witnessed two consecutive quarters of contraction making them the only two eurozone countries which are facing this phenomenon. &nbsp; 
 
ALSO READ |&nbsp;<a href="https://www.wionews.com/world/global-economy-faces-tough-time-in-2023-says-imf-head-548634">Third of global economy to face recession in 2023, warns IMF head</a>

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Growth forecast for 2023 (%): 
 
🇮🇪 4.9 
🇲🇹 3.1 
🇷🇴 2.5 
🇱🇺 1.7 
🇨🇾 1.6 
🇸🇰 1.5 
🇪🇸 1.4 
🇧🇬 1.4 
🇬🇷 1.2 
🇭🇷 1.2 
🇸🇮 1.0 
🇵🇹 1.0 
🇳🇱 0.9 
🇧🇪 0.8 
🇮🇹 0.8 
🇪🇺 0.8 
🇫🇷 0.6 
🇭🇺 0.6 
🇦🇹 0.5 
🇵🇱 0.4 
🇱🇹 0.3 
🇩🇪 0.2 
🇫🇮 0.2 
🇨🇿 0.1 
🇪🇪 0.1 
🇱🇻 0.1 
🇩🇰 0.1 
🇸🇪 -0.8 
 
Winter <a href="https://twitter.com/hashtag/ECForecast?src=hash&amp;ref_src=twsrc%5Etfw">#ECForecast</a> ↓
— European Commission 🇪🇺 (@EU_Commission) <a href="https://twitter.com/EU_Commission/status/1625058425716588548?ref_src=twsrc%5Etfw">February 13, 2023</a></blockquote>
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However, the commission has also said there is high uncertainty surrounding the forecast but the risks to growth are now broadly balanced. This could be due to a rise in domestic demand and if the “recent declines in wholesale gas prices pass through to consumer prices more strongly and consumption proves more resilient”, said the EC.&nbsp;

It added, “Nonetheless, a potential reversal of that fall cannot be ruled out in the context of continued geopolitical tensions”. Additionally, the Economy Commissioner Paolo Gentiloni also cautioned that “better than expected doesn’t mean good,” and said Europe continues to face a difficult period of slow growth and only a gradual easing in inflation.

ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/explained-imf-lifts-2023-global-growth-forecast-in-world-economic-outlook-updated-report-557556">Explained: IMF lifts 2023 global growth forecast in World Economic Outlook updated report</a>

Additionally, households and businesses in Europe continue to face high power bills, as core inflation with the exception of energy and unprocessed food is still affecting consumers’ purchasing power, said the commission.&nbsp;

This could signal further raises in interest rates by the European Central Bank, addressing which the commissioner said, “There are of course consequences of the tightening of monetary policy, but…there is the very positive aspect of this tightening, which is the contribution to reducing inflation, so overall I think this is balanced”.&nbsp;

(With inputs from agencies)&nbsp; 
 
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The European Commission (EC), on Monday (February 13), raised its growth forecast for the eurozone this year and also expects inflation to be lower than previously estimated at the end of 2022.

The European Commission (EC), on Monday (February 13), raised its growth forecast for the eurozone this year and also expects inflation to be lower than previously estimated at the end of 2022. The expected GDP for the eurozone was raised by 0.9 per cent which was up from the previously predicted 0.3 per cent. Additionally, the eurozone might also dodge recession this year after high levels of gas storage helped ease the energy crisis and labour markets continue to hold up, said the EC. The EU’s executive arm released the new winter forecasts which show that the 20 countries which use the euro referred to as the ‘eurozone’ will narrowly avoid the technical recession which was expected last year in November as the growth since was 0.1 per cent quarter-on-quarter. Furthermore, the wider European Union is expected to grow by 0.8 per cent from the previously predicted 0.3 per cent, said the EC. “Almost one year after Russia launched its war of aggression against Ukraine, the EU economy is on a better footing than expected in autumn”, said the commission, on Monday. They added, “Inflation appears to have peaked and favourable developments in energy markets foreshadow further forceful declines.” ALSO READ | Eurozone inflation hits record, as gas crunch looms This also comes as the wholesale gas prices have fallen “below pre-war levels” which has been attributed to the above-seasonal average levels of gas storage. The commission also said that the “forecast crucially hinges on the purely technical assumption that Russia's aggression of Ukraine will not escalate”. Furthermore, the EU executive arm in Brussels while announcing the forecast said, “Both areas are now set to narrowly avoid the technical recession that was anticipated for the turn of the year. The forecast also slightly lowers the projections for inflation for both 2023 and 2024.” Notably, the growth forecast for 2024 remains unchanged with 1.5 per cent for the eurozone and 1.6 per cent for the EU. The estimates also show that all EU states are expected to witness growth this year except Sweden which might contract by 0.8 per cent as the country is also facing a recession along with Denmark. Whereas, Germany the region’s biggest economy and Austria have also witnessed two consecutive quarters of contraction making them the only two eurozone countries which are facing this phenomenon. ALSO READ | Third of global economy to face recession in 2023, warns IMF head Growth forecast for 2023 (%): 🇮🇪 4.9 🇲🇹 3.1 🇷🇴 2.5 🇱🇺 1.7 🇨🇾 1.6 🇸🇰 1.5 🇪🇸 1.4 🇧🇬 1.4 🇬🇷 1.2 🇭🇷 1.2 🇸🇮 1.0 🇵🇹 1.0 🇳🇱 0.9 🇧🇪 0.8 🇮🇹 0.8 🇪🇺 0.8 🇫🇷 0.6 🇭🇺 0.6 🇦🇹 0.5 🇵🇱 0.4 🇱🇹 0.3 🇩🇪 0.2 🇫🇮 0.2 🇨🇿 0.1 🇪🇪 0.1 🇱🇻 0.1 🇩🇰 0.1 🇸🇪 -0.8 Winter #ECForecast ↓ — European Commission 🇪🇺 (@EU_Commission) February 13, 2023 × However, the commission has also said there is high uncertainty surrounding the forecast but the risks to growth are now broadly balanced. This could be due to a rise in domestic demand and if the “recent declines in wholesale gas prices pass through to consumer prices more strongly and consumption proves more resilient”, said the EC. It added, “Nonetheless, a potential reversal of that fall cannot be ruled out in the context of continued geopolitical tensions”. Additionally, the Economy Commissioner Paolo Gentiloni also cautioned that “better than expected doesn’t mean good,” and said Europe continues to face a difficult period of slow growth and only a gradual easing in inflation. ALSO READ | Explained: IMF lifts 2023 global growth forecast in World Economic Outlook updated report Additionally, households and businesses in Europe continue to face high power bills, as core inflation with the exception of energy and unprocessed food is still affecting consumers’ purchasing power, said the commission. This could signal further raises in interest rates by the European Central Bank, addressing which the commissioner said, “There are of course consequences of the tightening of monetary policy, but…there is the very positive aspect of this tightening, which is the contribution to reducing inflation, so overall I think this is balanced”. (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.

European Commission raises eurozone growth forecast for 2023 as inflation eases

The Reserve Bank of India (RBI) hiked its key interest rate, the repo rate, by 25 basis points on Wednesday and lowered its growth and inflation projections.

The repo rate is the interest banks pay to borrow from the central bank, and an increase in that rate makes banks raise their lending charges.

The latest is the sixth consecutive rate hike, taking the RBI's key rate to 6.50 per cent.

In all, the RBI has raised the benchmark rate by 2.5 per cent since May last year in its fight against inflation, which stayed above the higher end of the central bank's target of 2-6 per cent&nbsp;in 10 of the 12 months last year.

The central bank had to send a mandatory report to the government explaining why it could not meet its inflation target for most months last year.

What does the RBI rate hike mean?

Indian banks are certain to pass on the latest hike to customers almost immediately, as seen in recent months.

That will make loans costlier and lead to higher equated monthly instalments (EMIs).

All consumer loans have become costlier over the past year.

Indian households continue to be under pressure from mounting interest and rising EMIs even as they struggle to manage their monthly budgets from rising prices of almost everything.

The series of relatively large RBI rate hikes have sparked concerns that the battle against inflation could also risk curbing economic growth.

That view has forced several top institutions, including the RBI, to downgrade their India GDP growth forecasts for 2023-24.

But RBI Governor Shaktikanta Das said the Indian economy remains resilient and is seen as a bright spot in a gloomy world.

He also warned inflation is sticky and likely to remain above the central bank's target of 4 per cent&nbsp;this year, and as such, caution is needed.

Still, slowing growth concerns have driven expectations that the RBI's hands will be forced to pause rate hikes at some point soon.

<a href="https://www.wionews.com/india-news/explained-does-writing-on-indian-rupee-make-it-invalid-heres-a-fact-check-551817">Explained: Does writing on Indian rupee make it invalid? Here's a fact check</a>

A Reuters poll taken before Wednesday's decision showed post the latest hike, India's central bank will pause on interest rates.

But the central bank's tone suggests otherwise, with the RBI Governor opening the door for more hikes.

Like other major central banks, the RBI is waiting for stubbornly high inflation to ease further before it moves away from an aggressive approach.

What is not helping is the reason for the global inflation surge over the past year - the disruptions to global supply chains because of the Russia-Ukraine war.

That war on the edge of Europe shows no signs of abating, and instead, the standoff now seems to be escalating further.

That will keep global central banks on their toes.

(With inputs from agencies)

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The Reserve Bank of India (RBI) hiked its key interest rate, the repo rate, by 25 basis points on Wednesday and lowered its growth and inflation projections. The repo rate is the interest banks pay to borrow from the central bank, and an increase in that rate makes banks raise their lending charges.

The Reserve Bank of India (RBI) hiked its key interest rate, the repo rate, by 25 basis points on Wednesday and lowered its growth and inflation projections. The repo rate is the interest banks pay to borrow from the central bank, and an increase in that rate makes banks raise their lending charges. The latest is the sixth consecutive rate hike, taking the RBI's key rate to 6.50 per cent. In all, the RBI has raised the benchmark rate by 2.5 per cent since May last year in its fight against inflation, which stayed above the higher end of the central bank's target of 2-6 per cent in 10 of the 12 months last year. The central bank had to send a mandatory report to the government explaining why it could not meet its inflation target for most months last year. What does the RBI rate hike mean? Indian banks are certain to pass on the latest hike to customers almost immediately, as seen in recent months. That will make loans costlier and lead to higher equated monthly instalments (EMIs). All consumer loans have become costlier over the past year. Indian households continue to be under pressure from mounting interest and rising EMIs even as they struggle to manage their monthly budgets from rising prices of almost everything. The series of relatively large RBI rate hikes have sparked concerns that the battle against inflation could also risk curbing economic growth. That view has forced several top institutions, including the RBI, to downgrade their India GDP growth forecasts for 2023-24. But RBI Governor Shaktikanta Das said the Indian economy remains resilient and is seen as a bright spot in a gloomy world. He also warned inflation is sticky and likely to remain above the central bank's target of 4 per cent this year, and as such, caution is needed. Still, slowing growth concerns have driven expectations that the RBI's hands will be forced to pause rate hikes at some point soon. Explained: Does writing on Indian rupee make it invalid? Here's a fact check A Reuters poll taken before Wednesday's decision showed post the latest hike, India's central bank will pause on interest rates. But the central bank's tone suggests otherwise, with the RBI Governor opening the door for more hikes. Like other major central banks, the RBI is waiting for stubbornly high inflation to ease further before it moves away from an aggressive approach. What is not helping is the reason for the global inflation surge over the past year - the disruptions to global supply chains because of the Russia-Ukraine war. That war on the edge of Europe shows no signs of abating, and instead, the standoff now seems to be escalating further. That will keep global central banks on their toes. (With inputs from agencies) WATCH WION LIVE HERE:

Loans, EMIs to get costlier after RBI hikes rates for the sixth time in a row

The UK is now in recession and the shrinking labour force means the economy has little scope to make up ground once the slump is over, as the resolution foundation Think Tank pointed out Britain is in the midst of the worst 20 years for growth.

UK: Bank of England raises borrowing costs to 4%, expects inflation to fall sharply this year

The Bank of England increased interest rates on Thursday (Feb 2), in the midst of a recession, for the 10th&nbsp;time in a row, to the highest level since the 2008 financial crisis, with a warning that more hikes may be necessary to combat inflation.&nbsp;Rates were hiked by 50 basis points to four per cent, the highest level in over 15 years, by the nine-member committee of rate-setters involved in deciding the UK's basic level of borrowing costs. Governor Andrew Bailey was one of the 7-2 yes votes. In spite of the bank's forecast that Britain would remain in a recession for the entirety of this year and most of next, more hardship has been inflicted on individuals and businesses.

Additionally,&nbsp;European Central Bank (ECB) has once again&nbsp;hikes interest rates by 50 basis points.&nbsp;

The latest economic projections from the central bank were raised from its November forecasts, which called for the sharpest contraction since the early 1990s. However, after 15 months in a row, the length of the reversal is more or less&nbsp;the same.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/us-investors-have-plowed-billions-into-chinas-ai-sector-report-shows-558217">US investors have plowed billions into China's AI sector, report shows</a>

<div class="videoWrapper trancodeVideo">GDP is projected to contract by 0.5 per cent&nbsp;in 2023 and 0.25 in 2024, which is a little more gloomy than predictions made earlier this week by the International Monetary Fund (IMF), which stated that the UK would be the only wealthy economy to experience a contraction this year but growth the following year.</div>

The economy is projected to shrink by one per cent&nbsp;by the end of the recession, and by 2026 it may still be less than it was before the Covid&nbsp;pandemic.&nbsp;

Also watch |&nbsp;US: Fed approves 0.25% rate increase, Powell suggests 'couple' more hikes coming

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/us-fed-approves-025-rate-increase-powell-suggests-couple-more-hikes-coming-558092/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The Bank still believes "further tightening in monetary policy" would be necessary if "more persistent" inflationary pressures persist despite the protracted recession.

<h2>Rishi Sunak marks 100 days in office</h2>

As the first non-white British Prime Minister, Rishi Sunak celebrated his 100th day in office on Thursday (Feb 2) with a new social media video in which he vowed to bring about change despite several obstacles, such as spiralling inflation.

Following the abrupt resignations of his predecessors, party-gate-hit Boris Johnson and the nation's shortest-serving prime minister Liz Truss, the UK's first Prime Minister of Indian descent had entered office at 10 Downing Street on October 25, a day after Diwali (the Indian festival of lights).

(With inputs from agencies)

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The Bank of England increased interest rates on Thursday (Feb 2), in the midst of a recession, for the 10th time in a row, to the highest level since the 2008 financial crisis, with a warning that more hikes may be necessary to combat inflation.

The Bank of England increased interest rates on Thursday (Feb 2), in the midst of a recession, for the 10th time in a row, to the highest level since the 2008 financial crisis, with a warning that more hikes may be necessary to combat inflation. Rates were hiked by 50 basis points to four per cent, the highest level in over 15 years, by the nine-member committee of rate-setters involved in deciding the UK's basic level of borrowing costs. Governor Andrew Bailey was one of the 7-2 yes votes. In spite of the bank's forecast that Britain would remain in a recession for the entirety of this year and most of next, more hardship has been inflicted on individuals and businesses. Additionally, European Central Bank (ECB) has once again hikes interest rates by 50 basis points. The latest economic projections from the central bank were raised from its November forecasts, which called for the sharpest contraction since the early 1990s. However, after 15 months in a row, the length of the reversal is more or less the same. Also read | US investors have plowed billions into China's AI sector, report shows GDP is projected to contract by 0.5 per cent in 2023 and 0.25 in 2024, which is a little more gloomy than predictions made earlier this week by the International Monetary Fund (IMF), which stated that the UK would be the only wealthy economy to experience a contraction this year but growth the following year. The economy is projected to shrink by one per cent by the end of the recession, and by 2026 it may still be less than it was before the Covid pandemic. Also watch | US: Fed approves 0.25% rate increase, Powell suggests 'couple' more hikes coming The Bank still believes "further tightening in monetary policy" would be necessary if "more persistent" inflationary pressures persist despite the protracted recession. Rishi Sunak marks 100 days in office As the first non-white British Prime Minister, Rishi Sunak celebrated his 100th day in office on Thursday (Feb 2) with a new social media video in which he vowed to bring about change despite several obstacles, such as spiralling inflation. Following the abrupt resignations of his predecessors, party-gate-hit Boris Johnson and the nation's shortest-serving prime minister Liz Truss, the UK's first Prime Minister of Indian descent had entered office at 10 Downing Street on October 25, a day after Diwali (the Indian festival of lights). (With inputs from agencies) WATCH WION LIVE HERE:

UK: Bank of England hikes interest rates for 10th consecutive time amid recession

According to the latest Gallup poll, Americans of both parties think the biggest issue the country faces is the government itself and "poor leadership", outranking both inflation and the economy.

Gallup Poll: Americans think country's biggest problem is the government itself

After India's budget, the market's focus shift to the US Federal Reserve's decision later today with mounting evidence of easing inflation. Watch this report to know more.

After India's budget, the markets focus shift to US Fed decision

The IMF has downgraded its UK growth forecast. It predicts the UK economy will perform worse than sanctions-hit Russia. Molly Gambhir tells you more.

Gravitas: IMF downgrades UK growth forecast

IMF has predicted that the UK economy will contract by 0.6% in 2023, rather than grow slightly. It will perform worse than other advanced economies. Watch further to know more.

IMF: UK Economy to shrink by 0.6% in 2023

The European economy’s manufacturing sector registered a strong performance for the first time in six months, raising expectations that Europe will be able to weather the possible recession this year.

Europe’s S&amp;P Global Flash Eurozone purchasing managers’ index (PMI) rose to 50.2 in January from 49.3 in December.

PMI is an economic indicator derived from the monthly survey of private sector companies. It aims in providing information regarding the current and future conditions of a business to the decision-makers, analysts and investors of the company. A figure above 50 indicates growth.

According to the data, lower inflation, improved supply chains and the recent reopening of China’s Covid-scarred economy, greatly benefitted the European economy.

Among the European economies, Germany registered a robust performance with the composite PMI rising from 49.0 in December to 49.7 in January.

France, on the other hand, fell for a third consecutive month after a sharper drop in services activity.

While the rest of the eurozone, which is made up of 20 countries after Croatia joined in January, returned to growth.

“The survey undoubtedly brings welcome good news to suggest that any downturn is likely to be far less severe than previously feared and that a recession may well be avoided altogether,” said Chris Williamson, S&amp;P’s chief business economist, reports AFP news agency.

He added that the survey suggested “a nadir was reached back in October, since when fears over the energy market in particular have been alleviated by falling prices, helped by the warmer than usual weather and generous government assistance”.

Despite positive PMI, inflation remains to be high at 9.2 per cent, however, it fell fallen for two months in a row, driven by slowdown in the rate of energy price rises.

S&amp;P’s Williamson said however the increase in inflation for goods and services would “add encouragement to the hawks to push for further monetary policy tightening”.

(With inputs from agencies)

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The European economy’s manufacturing sector registered a strong performance for the first time in six months, raising expectations that Europe will be able to weather the possible recession this year.

The European economy’s manufacturing sector registered a strong performance for the first time in six months, raising expectations that Europe will be able to weather the possible recession this year. Europe’s S&P Global Flash Eurozone purchasing managers’ index (PMI) rose to 50.2 in January from 49.3 in December. PMI is an economic indicator derived from the monthly survey of private sector companies. It aims in providing information regarding the current and future conditions of a business to the decision-makers, analysts and investors of the company. A figure above 50 indicates growth. According to the data, lower inflation, improved supply chains and the recent reopening of China’s Covid-scarred economy, greatly benefitted the European economy. Among the European economies, Germany registered a robust performance with the composite PMI rising from 49.0 in December to 49.7 in January. France, on the other hand, fell for a third consecutive month after a sharper drop in services activity. While the rest of the eurozone, which is made up of 20 countries after Croatia joined in January, returned to growth. “The survey undoubtedly brings welcome good news to suggest that any downturn is likely to be far less severe than previously feared and that a recession may well be avoided altogether,” said Chris Williamson, S&P’s chief business economist, reports AFP news agency. He added that the survey suggested “a nadir was reached back in October, since when fears over the energy market in particular have been alleviated by falling prices, helped by the warmer than usual weather and generous government assistance”. Despite positive PMI, inflation remains to be high at 9.2 per cent, however, it fell fallen for two months in a row, driven by slowdown in the rate of energy price rises. S&P’s Williamson said however the increase in inflation for goods and services would “add encouragement to the hawks to push for further monetary policy tightening”. (With inputs from agencies) WATCH WION LIVE HERE:

Europe’s manufacturing performance rises for first time in six months

Cost-of-living crisis cloud and record high double-digit inflation looms over the UK. A new study has exposed just how much inflation has hit the poorest. WION's Neha Khanna brings you more insights.

WION Fineprint | Study: Inflation hits poorest Britons harder

Cost-of-living crisis cloud and record high double-digit inflation looms over the UK. A new study has exposed just how much inflation has hit the poorest. Watch this report to know further.

Study reflects differing impacts of UK inflation

In the midst of rising tensions with the West and the turmoil roiling the nation, the value of the Iranian rial has fallen to an all-time record low. The US dollar crossed the 450,000-rial threshold on the open market for the first time on Sunday.

Iran: Depreciation of Rial amid western sanctions and protests

Pakistan's dire economic situation shows signs of getting worse day by day. Now data on the inflation rate records an increase of about 32 percent from the combined income group on a year-on-year basis ending the 19th of January.

Pakistan: Short-term inflation increases to 31.83%

WION Fineprint | Pakistan: Weekly inflation sees an increase by 32%

Japan's inflation rose by almost 4% in December from a year ago, hitting a new 41-year high. The inflation surge has also triggered a debate if the Central Bank will now move from its decades-long quality of ultra low interest rates.

Japan's inflation hits new 41-year high; consumer inflation rises 4% from last year

The Brexit immigration curbs have caused the United Kingdoms a shortfall of nearly about 330,000. The shortage is tying itself to the already existing labour fuelling inflation.

World Business Watch: Brexit fallout costs Britain 330,000 workers

Inflation in the UK fell for a second month in December but remained at one of the highest levels in 40 years due to food prices. The annual rate as measured by the consumer prices index dipped again last month to 10.5%, continuing a fall from 10.7% in November and its recent peak of 11.1% in October.

UK inflation drops but food prices keep it high

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