Annual inflation in Israel was at 5.3% in December of 2022, driven by the rising cost of housing, transportation, communication, and food. This is Israel's highest rate of inflation since 2008.

Israel's inflation at 5.3% in 2022, highest since 2008

IMF warned of unraveling economic ties. This could shrink the global economy, particularly harming low-income countries. Watch further to know more.

World Business Watch: IMF warns of deteriorating trade relations globally

Weekly inflation in Pakistan increased by over 30 percent in comparison to last year amid a rise in the prices of food and a couple of fuel items.

Double digit inflation cripples Pakistan economy

Former central banker and professor of finance at Chicago's Booth School of Business, Raghuram Ranjan has expressed concerns over global central banks' framework of handling inflation.

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In his opinion report in Financial Times, Rajan pointed out how nobody anticipated the impending crisis of inflation bothering all realms of the global economy.

&nbsp;

Central banks have enough influence to garner an audience of trust in institutions. Such credibility comes as a result of a mix of past outcomes, policy tools, and policy driven frameworks, said Rajan,

&nbsp;

However, this credibility alone cannot help them sail through the crisis in a smooth manner and by its very nature, credibility does not turn on a dime, he added.

&nbsp;

The situation at hand requires us to deal with tackling high inflation, which remains drastically different from countering the regime of low inflation, when the Fed regained its credibility, perhaps under the influence of Paul Volcker, said the former Reserve Bank of India Governor.

&nbsp;

Technocratic central banks gained ground and equipped with an inflation targeting framework, thus regaining their title of "inflation firefighters", said the former IMF economist and added, following the global crisis, inflation fell below the benchmark, reinstating the need to push it back.

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Rajan said central banks tried a new move, rather than fighting inflation ferociously, they chose to "credibly promise to be irresponsible" in the words of Paul Krugman.

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With newer tools in hand, the central banks remained slow in raising rates in late 2021, he said.

&nbsp;

Finally, they switched their method to embed inflation tolerance within them. This new structure, adopted in 2020, was different from pre-emptive repulsion of inflation, said the former central banker.

&nbsp;

However, this came in very late, at a time when inflation was directly staring the global economy in the eyeballs, warned Rajan, adding this proved to be rendered ineffective given that the banks would not drastically increase interest rates.

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With the pandemic and the Ukraine war, a pushback happened to increase the inflation rates at a striking rate, and the series of events exposed the dubious nature of credibility of the central bank's role to demonstrate a hawkish stance in terms of inflation, said the former RBI governor.

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With the loss in credibility and changing inflation regimes, the environment is bound to change again, he added.

&nbsp;

Nonetheless, central banks still remain to be the most effective as they commit to fight inflation on a global scale, with an effective delegation of responsibility to governments and private sector, they could aim to sustain long term growth, said Rajan.

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Former central banker and professor of finance at Chicago's Booth School of Business, Raghuram Ranjan has expressed concerns over global central banks' framework of handling inflation.

Former central banker and professor of finance at Chicago's Booth School of Business, Raghuram Ranjan has expressed concerns over global central banks' framework of handling inflation. In his opinion report in Financial Times, Rajan pointed out how nobody anticipated the impending crisis of inflation bothering all realms of the global economy. Central banks have enough influence to garner an audience of trust in institutions. Such credibility comes as a result of a mix of past outcomes, policy tools, and policy driven frameworks, said Rajan, However, this credibility alone cannot help them sail through the crisis in a smooth manner and by its very nature, credibility does not turn on a dime, he added. The situation at hand requires us to deal with tackling high inflation, which remains drastically different from countering the regime of low inflation, when the Fed regained its credibility, perhaps under the influence of Paul Volcker, said the former Reserve Bank of India Governor. Technocratic central banks gained ground and equipped with an inflation targeting framework, thus regaining their title of "inflation firefighters", said the former IMF economist and added, following the global crisis, inflation fell below the benchmark, reinstating the need to push it back. Rajan said central banks tried a new move, rather than fighting inflation ferociously, they chose to "credibly promise to be irresponsible" in the words of Paul Krugman. With newer tools in hand, the central banks remained slow in raising rates in late 2021, he said. Finally, they switched their method to embed inflation tolerance within them. This new structure, adopted in 2020, was different from pre-emptive repulsion of inflation, said the former central banker. However, this came in very late, at a time when inflation was directly staring the global economy in the eyeballs, warned Rajan, adding this proved to be rendered ineffective given that the banks would not drastically increase interest rates. With the pandemic and the Ukraine war, a pushback happened to increase the inflation rates at a striking rate, and the series of events exposed the dubious nature of credibility of the central bank's role to demonstrate a hawkish stance in terms of inflation, said the former RBI governor. With the loss in credibility and changing inflation regimes, the environment is bound to change again, he added. Nonetheless, central banks still remain to be the most effective as they commit to fight inflation on a global scale, with an effective delegation of responsibility to governments and private sector, they could aim to sustain long term growth, said Rajan. WATCH WION LIVE HERE:

Global central banks' credibility at risk over rising inflation: Raghuram Rajan

The Britons are unhappy, essential services have collapsed, divorce rates are up and house prices have slumped. Is the UK still a great place to live and work? Priyanka Sharma tells you more.

Gravitas: The UK is no more a great place to live

Pakistan's Prime Minister Shehbaz Sharif has admitted that inflation has reached a new peak in the country. Earlier, government has announced closure of markets, malls and wedding halls with a view to conserving energy. Watch further to know more.

WION Dispatch: Pakistan hit hard by inflation

UK Prime Minister Rishi Sunak seems to have come up with these 'five promises' to solve numerous problems faced by the country. Watch this video to know more.

British PM Rishi Sunak vows to tackle pressing concerns in the country

Previously shadowed by strikingly high inflation rates; Turkey has seen the steepest drop in its inflation rates in the last 28 years. Trade deficit widens by 138.4% from last year.

World Business Watch: Turkey's consumer inflation at its lowest in 28 years

The international monetary fund has issued a warning that a third of the global economy will be in recession this year. China will face a rocky start to 2023, while the U.S. will be at the edge of a recession. This comes as the war continues in Ukraine, inflation soars, and interest rates continue to spike. What does it spell for South Asian nations? Molly Gambhir tells you more.

Gravitas: IMF: Global economy faces a tougher year

From gas to groceries, the year 2022 has been a whirlwind for people across the world. Prices rose at the fastest pace in decades. Economists say the coming year could bring in feeble growth as central banks raise rates to tackle high inflation. Will 2023 be the year of recession? Molly Gambhir tells you more.

Gravitas: What Could Tip Global Economy Into Recession?

The Bank of Japan (BOJ) is planning to raise its inflation forecasts in January, Nikkei reported. The forecasts may show price growth close to its 2 per cent target in fiscal 2023 and 2024.&nbsp;Earlier this month, BOJ shook markets by widening its 10-year yield cap range. This move is officially aimed at straightening out bond market distortions but seen by some analysts as a prelude to the exit from its ultra-loose monetary easing.

Upgrades to the BOJ's inflation forecast would further fuel such speculation as Governor Haruhiko Kuroda has said the central bank could discuss the exit if achievement of its 2% inflation target in tandem with wage hikes comes into sight.

Nikkei, citing people familiar with discussions at the central bank, said that the proposed changes would show the core consumer price index rising around 3% in fiscal 2022, between 1.6% and 2% in fiscal 2023, and nearly 2% in fiscal 2024.

Previous forecasts were released in the month of October. They were around 2.9 %, 1.6% and 1.6%, respectively.

Japan's core consumer prices excluding fresh food items rose 3.7% in November, the highest since 1981, government data showed last week.

But Kuroda has dismissed the chance of a near-term interest rate hike, saying recent price rises were driven by one-off increases in raw material costs rather than strong demand.

The BOJ will release the latest quarterly growth and price outlook after its next policy meeting on Jan. 17-18.

(With inputs from agencies)

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The Bank of Japan (BOJ) is planning to raise its inflation forecasts in January, Nikkei reported. The forecasts may show price growth close to its 2 per cent target in fiscal 2023 and 2024.

The Bank of Japan (BOJ) is planning to raise its inflation forecasts in January, Nikkei reported. The forecasts may show price growth close to its 2 per cent target in fiscal 2023 and 2024. Earlier this month, BOJ shook markets by widening its 10-year yield cap range. This move is officially aimed at straightening out bond market distortions but seen by some analysts as a prelude to the exit from its ultra-loose monetary easing. Upgrades to the BOJ's inflation forecast would further fuel such speculation as Governor Haruhiko Kuroda has said the central bank could discuss the exit if achievement of its 2% inflation target in tandem with wage hikes comes into sight. Nikkei, citing people familiar with discussions at the central bank, said that the proposed changes would show the core consumer price index rising around 3% in fiscal 2022, between 1.6% and 2% in fiscal 2023, and nearly 2% in fiscal 2024. Previous forecasts were released in the month of October. They were around 2.9 %, 1.6% and 1.6%, respectively. Japan's core consumer prices excluding fresh food items rose 3.7% in November, the highest since 1981, government data showed last week. But Kuroda has dismissed the chance of a near-term interest rate hike, saying recent price rises were driven by one-off increases in raw material costs rather than strong demand. The BOJ will release the latest quarterly growth and price outlook after its next policy meeting on Jan. 17-18. (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 ×

Bank of Japan may raise inflation forecasts: Report

Matching market expectations and the pace seen in November; South Korea's consumer prices index in December rose 5 percent from the year prior. The consumer price index was 0.2% higher than in November.

South Korea's consumer prices rise 5 percent from the year prior

2022 hasn't been great for workers all across the world, but CEOs, on the other hand, made the most of it. India Inc's CEOs took home 4% higher pay in the last fiscal year, while employees struggled to keep up with inflation. Molly Gambhir tells you more.

Gravitas: Was your increment inflation-adjusted?

The Spanish government announced on Tuesday that VAT will be completely removed for all basic food items in order to control the cost of living crisis. According to media reports, the package of measures is roughly worth $10.6 billion with additional tax cuts for other necessary items.

"For six months, we will reduce VAT on all basic foods from 4.0 percent to 0.0 percent," Spanish Prime Minister Pedro Sanchez said at the end-of-the-year press conference according to AFP.

“VAT on oil and pasta would also be reduced from 10 percent to five percent”, he added.

Also read |&nbsp;<a href="https://www.wionews.com/world/putin-to-bans-russian-oil-exports-to-countries-that-imposed-price-cap-starting-february-decree-547160">Russia to ban crude oil exports to countries that imposed price cap: Decree</a>

Sanchez said that the “basic food items” currently include bread, milk, eggs, cheese, fruit and vegetables, and cereals and he also announced a one-off payment of 200 euros to "families with incomes lower than 27,000 euros" in order to simplify the situation for the lower-income groups.

The cost of living crisis has been brewing in parts of Europe as part of the Ukraine-Russia war and since the start of the crisis, the Spanish government has spent in excess of $45 billion.

The inflation in Spain has also gone down considerably in the past few months and it currently stands at 6.8 percent – in comparison to over 10 per cent back in July. Meanwhile, Spain has already extended the discount on electricity as well as gas prices in the past six months. The scarcity of fuel in the wake of Russia’s decision to stop supplies has already impacted Spain’s economy massively.

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The Spanish government announced on Tuesday that VAT will be completely removed for all basic food items in order to control the cost of living crisis. According to media reports, the package of measures is roughly worth $10.

The Spanish government announced on Tuesday that VAT will be completely removed for all basic food items in order to control the cost of living crisis. According to media reports, the package of measures is roughly worth $10.6 billion with additional tax cuts for other necessary items. "For six months, we will reduce VAT on all basic foods from 4.0 percent to 0.0 percent," Spanish Prime Minister Pedro Sanchez said at the end-of-the-year press conference according to AFP. “VAT on oil and pasta would also be reduced from 10 percent to five percent”, he added. Also read | Russia to ban crude oil exports to countries that imposed price cap: Decree Sanchez said that the “basic food items” currently include bread, milk, eggs, cheese, fruit and vegetables, and cereals and he also announced a one-off payment of 200 euros to "families with incomes lower than 27,000 euros" in order to simplify the situation for the lower-income groups. The cost of living crisis has been brewing in parts of Europe as part of the Ukraine-Russia war and since the start of the crisis, the Spanish government has spent in excess of $45 billion. The inflation in Spain has also gone down considerably in the past few months and it currently stands at 6.8 percent – in comparison to over 10 per cent back in July. Meanwhile, Spain has already extended the discount on electricity as well as gas prices in the past six months. The scarcity of fuel in the wake of Russia’s decision to stop supplies has already impacted Spain’s economy massively.

Spain removes VAT on basic food items to control growing inflation

India seems "unstoppable" in its momentum to become the third economic superpower and touch the $10-trillion mark by 2035, according to the Centre for Economics and Business Research (CEBR).

India to become $ 10 trillion economy by 2035, forecasts CEBR

According to a report published by PwC, the British workers pay in 2023 is expected to fall back to 2006 once inflation is taken into account.

Report: Average British worker's pay likely to drop by 2% in 2023

The world is headed for a recession in 2023, according to the Centre for Economics and Business Research (CEBR). Fresh borrowing costs aimed at tackling inflation cause a number of economies to contract.

Reports: World economy is headed for a recession in 2023

According to new data, shoppers are expected to spend 4% less on Boxing Day and during the post-Christmas sales as the cost-of-living crisis continues to bite.

Research: Dip in Boxing Day sales due to rising cost of living

Inflation in Japan rose to its highest level since 1981 in November, as per data released on Friday (December 23). The inflation is fuelled in part by higher energy costs.

The data released by internal affairs ministry showed that core consumer prices (excluding volatile fresh food costs) rose by 3.7 per cent in November compared to a year earlier.

The biggest price jump was seen in processed food items. Prices were also higher for electricity and durable goods like air conditioners.

The November figure is well below the sky-high levels that have sparked concern in the United States, Britain and elsewhere, but far exceeds the Bank of Japan's long-term goal of 2.0 percent. &nbsp;

Gravitas: Japan approves Alzhiemer's blood test kit

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Even excluding fresh food and energy, the index was up 2.8 percent.&nbsp;

"Although low by international standards, Japanese consumer price inflation at three percent to four percent is high enough to feel uncomfortable with stagnant wage growth," wrote Sarah Tan, economist at Moody's Analytics, in a note.&nbsp;

The headline core consumer price index (CPI) has risen consistently since the beginning of the year, putting pressure on the Bank of Japan to tweak its longstanding monetary easing policies.&nbsp;

Also Read | <a href="https://www.wionews.com/business-economy/japans-central-bank-shocks-markets-with-yield-policy-change-yen-strengthens-544884">Japan's central bank shocks markets with yield policy change, yen strengthens</a> &nbsp;

The US Federal Reserve and other central banks have sharply hiked interest rates this year to tackle inflation.&nbsp;

But Japan, which since the 1990s has swung between periods of sluggish inflation and deflation, has gone against the grain and continues to keep interest rates at ultra-low levels as it tries to kickstart its economy.&nbsp;

(With inputs from inflation)

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Inflation in Japan rose to its highest level since 1981 in November, as per data released on Friday (December 23). The inflation is fuelled in part by higher energy costs.

Inflation in Japan rose to its highest level since 1981 in November, as per data released on Friday (December 23). The inflation is fuelled in part by higher energy costs. The data released by internal affairs ministry showed that core consumer prices (excluding volatile fresh food costs) rose by 3.7 per cent in November compared to a year earlier. The biggest price jump was seen in processed food items. Prices were also higher for electricity and durable goods like air conditioners. The November figure is well below the sky-high levels that have sparked concern in the United States, Britain and elsewhere, but far exceeds the Bank of Japan's long-term goal of 2.0 percent.  Gravitas: Japan approves Alzhiemer's blood test kit × Even excluding fresh food and energy, the index was up 2.8 percent. "Although low by international standards, Japanese consumer price inflation at three percent to four percent is high enough to feel uncomfortable with stagnant wage growth," wrote Sarah Tan, economist at Moody's Analytics, in a note. The headline core consumer price index (CPI) has risen consistently since the beginning of the year, putting pressure on the Bank of Japan to tweak its longstanding monetary easing policies. Also Read | Japan's central bank shocks markets with yield policy change, yen strengthens The US Federal Reserve and other central banks have sharply hiked interest rates this year to tackle inflation. But Japan, which since the 1990s has swung between periods of sluggish inflation and deflation, has gone against the grain and continues to keep interest rates at ultra-low levels as it tries to kickstart its economy. (With inputs from inflation) 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 ×

Inflation in Japan hits highest level since 1981

The UK economy contracted by more than first estimated in the third quarter. The value of all the goods and services produced fell by a revised 0.3% against the 0.2% decline. Watch further to know more.

WION Dispatch: UK economy shrinking more than expected

Turkey on Thursday (December 22) announced third major minimum wage hike in a matter of a year in order to try and cushion against inflation. The move has been taken ahead of crunch elections.

Turkish President Recep Tayyip Erdogan said on Thursday that the minimum wage would be raised to 8500 liras (USD 455). In December 2021, the minimum wage was 2826 liras.

More than 40 per cent of Turkey's working citizens earn minimum wage. When he rose to power two decades ago, working classes were the main support base of Erdogan.

But Turkey's poor have been hit the hardest by an economic crisis that has seen the official annual inflation rate reach 85 percent.

It was raised to 4,253 liras last January and then to 5,500 in July.

But an accompanying plunge in the lira's value means that the wage has been raised only fractionally in dollar terms in the past year.

Turkey's latest economic crisis started when Erdogan -- a lifelong opponent of high interest rates -- pressured the central bank to bring down chronically high consumer prices by lowering borrowing costs.

Conventional economic theory urges policymakers to fight inflation by curbing demand and raising the price of doing business through higher interest rates.

Erdogan's approach set off a currency crisis that saw the lira lose nearly half its value in a matter of weeks late last year.

The government has responded by spending its reserves on currency support measures and imposing complex economic rules aimed at bringing inflation under control.

(With inputs from agencies)

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Turkey on Thursday (December 22) announced third major minimum wage hike in a matter of a year in order to try and cushion against inflation. The move has been taken ahead of crunch elections.

Turkey on Thursday (December 22) announced third major minimum wage hike in a matter of a year in order to try and cushion against inflation. The move has been taken ahead of crunch elections. Turkish President Recep Tayyip Erdogan said on Thursday that the minimum wage would be raised to 8500 liras (USD 455). In December 2021, the minimum wage was 2826 liras. More than 40 per cent of Turkey's working citizens earn minimum wage. When he rose to power two decades ago, working classes were the main support base of Erdogan. But Turkey's poor have been hit the hardest by an economic crisis that has seen the official annual inflation rate reach 85 percent. It was raised to 4,253 liras last January and then to 5,500 in July. But an accompanying plunge in the lira's value means that the wage has been raised only fractionally in dollar terms in the past year. Turkey's latest economic crisis started when Erdogan -- a lifelong opponent of high interest rates -- pressured the central bank to bring down chronically high consumer prices by lowering borrowing costs. Conventional economic theory urges policymakers to fight inflation by curbing demand and raising the price of doing business through higher interest rates. Erdogan's approach set off a currency crisis that saw the lira lose nearly half its value in a matter of weeks late last year. The government has responded by spending its reserves on currency support measures and imposing complex economic rules aimed at bringing inflation under control. (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 ×

Turkey looks to fight inflation by raising minimum wage third time

The House of Lords economic affairs committee said the substantial rise in economic inactivity – when working-age persons are neither in employment nor looking for a job – since the outset of the health emergency was providing “serious challenges” to the economy.

UK Economic Troubles: Lords report points out sharp rise in economic inactivity

A Lords report has warned that an exodus of more than half a million people from the British workforce since the Covid pandemic is putting the UK economy at risk of weaker growth and persistently higher inflation.

Workforce exodus hits UK economy; House of Lords panel report raises concerns

President Joe Biden stated on Tuesday (13 December) that although there is still work to be done, the inflation rate in the United States is decreasing and things are moving in the right direction.

"It will take time to get inflation back to normal levels, I want to be clear about that. We could have setbacks when we go from unstable growth to one that is more steady. There is nothing we should take for granted "he stated.

“We learned last month that the inflation rate came down, down more than experts expected,” Biden said, speaking from the White House. “In a world where inflation is rising in double digits in many major economies around the world, inflation is coming down in America.”

The core consumer price index, which economists consider to be the main indicator of inflation and exclude the cost of food and energy, increased just 0.2 per cent&nbsp;in November. The monthly gain is the smallest in over a year. Core CPI expenses were up 6 per cent&nbsp;from a year earlier, according to the Labor Department's report, which was issued on Tuesday.

Also read |&nbsp;<a href="https://www.wionews.com/world/two-us-men-released-after-serving-25-years-in-jail-after-true-crime-podcast-challenges-conviction-542704">US jail releases two men after serving 25 years in jail as true crime podcast challenges conviction</a>

Food and energy are included in the overall CPI, which increased by 7.1 per cent&nbsp;over the last 12 months and 0.1 per cent from the previous month.

The Fed may be able to accomplish the desired "soft landing" and prevent a significant economic recession as a result of the easing, which shows that the Fed's interest rate rises may be having the desired effect.

The study is probably going to reassure the Fed and Jerome Powell, the head of the central bank. The Fed is anticipated to only raise interest rates by a half-point at the end of its meeting on Wednesday, as compared to the three-quarter point raises it has implemented this year.

Also read |&nbsp;<a href="https://www.wionews.com/world/us-conducts-successful-test-of-hypersonic-missile-says-air-force-542489">US conducts successful test of hypersonic missile, says air force</a>

Standing with Cecilia Rouse, Chair of the Council of Economic Advisers, and Brian Deese, Director of the National Economic Council, Biden expressed his expectation that prices will return to normal by the end of the year, if not before. But he emphasised that he was unable to forecast that.

The president admitted that many Americans are now having financial difficulties. He urged Americans to stick with their current course, saying that the good economic news proves that his economic policies are effective.

(With inputs from agencies)

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President Joe Biden stated on Tuesday (13 December) that although there is still work to be done, the inflation rate in the United States is decreasing and things are moving in the right direction.

President Joe Biden stated on Tuesday (13 December) that although there is still work to be done, the inflation rate in the United States is decreasing and things are moving in the right direction. "It will take time to get inflation back to normal levels, I want to be clear about that. We could have setbacks when we go from unstable growth to one that is more steady. There is nothing we should take for granted "he stated. “We learned last month that the inflation rate came down, down more than experts expected,” Biden said, speaking from the White House. “In a world where inflation is rising in double digits in many major economies around the world, inflation is coming down in America.” The core consumer price index, which economists consider to be the main indicator of inflation and exclude the cost of food and energy, increased just 0.2 per cent in November. The monthly gain is the smallest in over a year. Core CPI expenses were up 6 per cent from a year earlier, according to the Labor Department's report, which was issued on Tuesday. Also read | US jail releases two men after serving 25 years in jail as true crime podcast challenges conviction Food and energy are included in the overall CPI, which increased by 7.1 per cent over the last 12 months and 0.1 per cent from the previous month. The Fed may be able to accomplish the desired "soft landing" and prevent a significant economic recession as a result of the easing, which shows that the Fed's interest rate rises may be having the desired effect. The study is probably going to reassure the Fed and Jerome Powell, the head of the central bank. The Fed is anticipated to only raise interest rates by a half-point at the end of its meeting on Wednesday, as compared to the three-quarter point raises it has implemented this year. Also read | US conducts successful test of hypersonic missile, says air force Standing with Cecilia Rouse, Chair of the Council of Economic Advisers, and Brian Deese, Director of the National Economic Council, Biden expressed his expectation that prices will return to normal by the end of the year, if not before. But he emphasised that he was unable to forecast that. The president admitted that many Americans are now having financial difficulties. He urged Americans to stick with their current course, saying that the good economic news proves that his economic policies are effective. (With inputs from agencies) WATCH WION LIVE HERE:

US: President Biden lauds declining inflation rates; defends his economic strategies

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