Argentina’s economy minster Martin Guzman, announced his resignation on Saturday (July 2), creating more uncertainty in the regions third largest economy. Guzman led renegotiations with the International Monetary Fund (IMF). The former minister didn’t provide any reason for his resignation in his statement to the President Alberto Fernandez, but urged the leader to resolve internal conflicts so that “the next minster does not suffer” with problems he faced in his twitter post. The 39-year-old minister’s job involved renegotiating a $44 billion debt with IMF that the country maintained but couldn’t afford it. However, the initial loan issued was of $57 billion, the largest ever issued by the organisation but was denied by Fernandez after succeeding his predecessor who requested the loan, reported by AFP.

The resignation comes&nbsp;after being criticised by the former president and current vice president Cristina Kirchner who gave a speech attacking the government for its economic management. Guzman was able to reach an agreement and prevent the country from defaulting despite Kirchner’s resistance.

Also read |&nbsp;<a href="https://www.wionews.com/world/argentina-seizes-passports-of-grounded-planes-iranian-crew-488147">Argentina seizes passports of grounded plane's Iranian crew</a>

Guzman said whoever succeeds him will need to “centralized management of the necessary macroeconomic political instruments to consolidate the progress made and face the challenges ahead,” AFP reported.

Argentina, a major agricultural nation has been dealing with the economic crisis for years, with the inflation at over 60 per cent over the past year. The IMF deal included clauses to control inflation and bring the budget deficit down from 3 per cent in 2021 to parity by 2025.&nbsp;

Watch |&nbsp;Gravitas Global Headlines: Protests amid rising inflation in Argentina

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The country was already struggling but the Covid pandemic made things worse with increasing unemployment. The president earlier this week admitted that the country has been facing “a growth crisis” due to lack of foreign exchange.

As per political expert Carlos Fara in conversation with AFP said, “The resignation will have a very bad effect in the markets. Even if the president and vice president reach a consensus on managing the economy, from now on everything will be conditioned by Cristina Kirchner's pressure."

Also read |&nbsp;<a href="https://www.wionews.com/world/argentina-detects-eight-cases-of-severe-hepatitis-of-unknown-origin-in-children-477309">Argentina detects eight cases of severe hepatitis of unknown origin in children</a>

In a recent report by the Eurasia Group stated that as per recent years analysis that the internal conflicts won’t be solved anytime soon. The group said, “Infighting within the administration will continue to worsen, further hurting the administration's ability to develop a coherent policy plan.”

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(with inputs from agencies)

Argentina’s economy minster Martin Guzman, announced his resignation on Saturday (July 2), creating more uncertainty in the regions third largest economy. Guzman led renegotiations with the International Monetary Fund (IMF).

Argentina’s economy minster Martin Guzman, announced his resignation on Saturday (July 2), creating more uncertainty in the regions third largest economy. Guzman led renegotiations with the International Monetary Fund (IMF). The former minister didn’t provide any reason for his resignation in his statement to the President Alberto Fernandez, but urged the leader to resolve internal conflicts so that “the next minster does not suffer” with problems he faced in his twitter post. The 39-year-old minister’s job involved renegotiating a $44 billion debt with IMF that the country maintained but couldn’t afford it. However, the initial loan issued was of $57 billion, the largest ever issued by the organisation but was denied by Fernandez after succeeding his predecessor who requested the loan, reported by AFP. The resignation comes after being criticised by the former president and current vice president Cristina Kirchner who gave a speech attacking the government for its economic management. Guzman was able to reach an agreement and prevent the country from defaulting despite Kirchner’s resistance. Also read | Argentina seizes passports of grounded plane's Iranian crew Guzman said whoever succeeds him will need to “centralized management of the necessary macroeconomic political instruments to consolidate the progress made and face the challenges ahead,” AFP reported. Argentina, a major agricultural nation has been dealing with the economic crisis for years, with the inflation at over 60 per cent over the past year. The IMF deal included clauses to control inflation and bring the budget deficit down from 3 per cent in 2021 to parity by 2025. Watch | Gravitas Global Headlines: Protests amid rising inflation in Argentina The country was already struggling but the Covid pandemic made things worse with increasing unemployment. The president earlier this week admitted that the country has been facing “a growth crisis” due to lack of foreign exchange. As per political expert Carlos Fara in conversation with AFP said, “The resignation will have a very bad effect in the markets. Even if the president and vice president reach a consensus on managing the economy, from now on everything will be conditioned by Cristina Kirchner's pressure." Also read | Argentina detects eight cases of severe hepatitis of unknown origin in children In a recent report by the Eurasia Group stated that as per recent years analysis that the internal conflicts won’t be solved anytime soon. The group said, “Infighting within the administration will continue to worsen, further hurting the administration's ability to develop a coherent policy plan.” 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. (with inputs from agencies)

Argentina’s economy minister resigns after being criticised for economic mismanagement

Argentina may have the third largest economy in Latin America but it has been in economic crisis for years. The country's currency hit an all-time low and he inflation is running above 60%.

WION Fineprint | Argentina's currency hit an all-time low, inflation is running above 60%

Inflation is more than a change in your purchasing power. Inflation can give rise to dictators like Hitler. It can also force a country into irrelevance, like Venezuela. As our world battles record inflation, Palki Sharma brings you the 4 'P's you need to watch out for.

Gravitas Plus: How inflation can change our world

Hundreds of Israelis protested against inflation in the capital Tel Aviv. The country has been ranked as one of the most expensive places to live. Now the recent global trends have only worsened the pain of the rising cost of living.

Tel Aviv: Protestors wave placards criticising gas & housing prices

Eurozone inflation triggered by the ongoing gas crunch has hit a record high of 8.6%. Meanwhile, Moscow has seized control of the Sakhalin gas project.

Energy crisis brews amid Ukraine war: Eurozone inflation hits record 8.6%

Eurozone inflation accelerated to another record high in June, official data showed on Friday, as Russia's war in Ukraine drives up energy prices and hammers the European economy.

The EU's Eurostat data agency said the increase in consumer prices in the 19 countries that use the euro reached 8.6 percent in June, leaping from the previous record of 8.1 percent a month earlier.

Consumer prices in the eurozone have hit records since November, buffeted by sky-high energy prices, which jumped by 41.9 percent over one year, caused by the fallout of Russia's invasion of its neighbour Ukraine.

But analysts also pointed to the rise in food prices, which accelerated by 8.9 percent, showing that the inflation problem was spreading through the economy.

"Historically, we have never had such a high figure for the contribution of food. It will have a big impact," said Philippe Waechter of Ostrum Asset Management.

The European Central Bank has said it will do whatever it takes to bring inflation back to its target level, with political pressure high to bring energy and food prices into check.

"With eurozone inflation now becoming more broad-based in nature, the outlook for the Eurozone for the rest of 2022 continues to look bleak," warned Pushpin Singh, Economist at the Centre for Economics and Business Research.

"This comes amid a mounting possibility of a severe gas crisis in Europe, with Russia using gas exports as a means to counter sanctions," he added.

Rate hike

As the conflict rages on, Russia has shown an increased willingness to cut off gas supplies to Europe, a danger that has raised the prospect of energy rationing in the eurozone to get through next winter.

Some analysts took solace in the core inflation data, which excludes energy and food prices and came in at 3.7 percent, a tiny drop from the previous month.

But this would not be enough to change the course decided at the ECB's last meeting, when policymakers agreed to the bank's first interest rate hike in more than a decade.

The quarter-point raise, set to take place at its next meeting on July 21, will raise rates from their historic lows.

"We will go as far as necessary to ensure that inflation stabilises at our two percent target over the medium term," ECB head Christine Lagarde said on Tuesday.

The ECB is being pressured by some to go faster in halting inflation and choose a path more akin to the United States where the Federal Reserve has warned it may trigger a recession to cool prices.

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Eurozone inflation accelerated to another record high in June, official data showed on Friday, as Russia's war in Ukraine drives up energy prices and hammers the European economy.

Eurozone inflation accelerated to another record high in June, official data showed on Friday, as Russia's war in Ukraine drives up energy prices and hammers the European economy. The EU's Eurostat data agency said the increase in consumer prices in the 19 countries that use the euro reached 8.6 percent in June, leaping from the previous record of 8.1 percent a month earlier. Consumer prices in the eurozone have hit records since November, buffeted by sky-high energy prices, which jumped by 41.9 percent over one year, caused by the fallout of Russia's invasion of its neighbour Ukraine. But analysts also pointed to the rise in food prices, which accelerated by 8.9 percent, showing that the inflation problem was spreading through the economy. "Historically, we have never had such a high figure for the contribution of food. It will have a big impact," said Philippe Waechter of Ostrum Asset Management. The European Central Bank has said it will do whatever it takes to bring inflation back to its target level, with political pressure high to bring energy and food prices into check. "With eurozone inflation now becoming more broad-based in nature, the outlook for the Eurozone for the rest of 2022 continues to look bleak," warned Pushpin Singh, Economist at the Centre for Economics and Business Research. "This comes amid a mounting possibility of a severe gas crisis in Europe, with Russia using gas exports as a means to counter sanctions," he added. Rate hike As the conflict rages on, Russia has shown an increased willingness to cut off gas supplies to Europe, a danger that has raised the prospect of energy rationing in the eurozone to get through next winter. Some analysts took solace in the core inflation data, which excludes energy and food prices and came in at 3.7 percent, a tiny drop from the previous month. But this would not be enough to change the course decided at the ECB's last meeting, when policymakers agreed to the bank's first interest rate hike in more than a decade. The quarter-point raise, set to take place at its next meeting on July 21, will raise rates from their historic lows. "We will go as far as necessary to ensure that inflation stabilises at our two percent target over the medium term," ECB head Christine Lagarde said on Tuesday. The ECB is being pressured by some to go faster in halting inflation and choose a path more akin to the United States where the Federal Reserve has warned it may trigger a recession to cool prices. 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 ×

Eurozone inflation hits record, as gas crunch looms

Record inflation or price hikes across the world are showing no signs of abating. Even as crude prices have softened a bit in the last few weeks, in the latest the price growth in the Eurozone has hit a new record high of 8.6 percent last month.

Inflation in 19 EU nations hits record high

As the island nation's inflation hit a ninth consecutive record in the month of June, inflation reached an all-time high and with this Sri Lanka is now broken into the hyperinflation zone.

Sri Lanka breaks into hyperinflation zone, IMF suggests to raise taxes to revive economy

EU leaders on Friday warned that "cheap energy is gone" and agreed to boost preparations for further cuts in Russian gas, accusing Moscow of "weaponising" energy via a supply squeeze which Germany warned could partly shut its industry.

A day after celebrations over setting Kyiv on the road to membership of the bloc, Friday's summit in Brussels was a sober reflection on the economic impact of Russia's invasion of Ukraine, with growing worries over soaring prices and warnings of a "tough winter".

Also read |&nbsp;<a href="https://www.wionews.com/world/historic-moment-eu-agrees-to-grant-candidate-status-to-ukraine-moldova-491142">'Historic moment': EU agrees to grant candidate status to Ukraine, Moldova</a>

"Inflation is a major concern for all of us," European Council chief Charles Michel told a news conference as the two-day summit ended.

"Russia's war of aggression is pushing up the price of food, energy and commodities," he said, adding that leaders had agreed to closely coordinate their economic policy responses.

The summit agreed few concrete steps but the leaders tasked the European Commission with finding more ways to secure "supply at affordable prices" because of "the weaponisation of gas by Russia."

European Commission chief Ursula von der Leyen said the search for alternative supplies was already in progress, with U.S. LNG deliveries up 75 per cent&nbsp;this year from last year, and Norway pipeline gas deliveries up 15 per cent.

Besides, the EU executive will present a plan on preparedness for more gas cuts from Russia to leaders in July she said, adding: "Hope for the best, prepare for the worst. That's what we are doing right now."

The European Commission will come up with proposals and options to discuss at the next EU summit in October, including considering alternative market designs that would potentially include decoupling gas from the formation of the market price for electricity, von der Leyen said.

"We are working on different models, not only to look into how to curb the energy prices or electricity prices but also to look at the market design, with the question: is the market design we have today still fit for purpose?", she said.

One contentious issue is whether governments should step in to cap prices.

Watch |&nbsp;Ukraine a step closer to EU membership amid Russian invasion?

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Spain and Portugal capped gas prices in their local electricity market this month, but other states warn price caps would disrupt energy markets and drain state coffers further, if governments had to pay the difference between the capped price and the price in international gas markets.

'Tough Winter'

Leaders of the 27 EU nations placed the blame for a huge spike in prices and sagging global growth on the war that began exactly four months ago.

"The notion of cheap energy is gone and the notion of Russian energy is essentially gone and we are all in the process of securing alternate sources," Latvian Prime Minister Krisjanis Karins said, adding governments must "support those portions of society that suffer the most".

Following unprecedented Western sanctions imposed over the invasion, a dozen European countries have so far been thumped by cuts in gas flows from Russia.

"It is only a matter of time before the Russians close down all gas shipments," said one EU official ahead of Friday's talks.

German Economy Minister Robert Habeck warned his country was heading for a gas shortage if Russian supplies remained as low as now, and some industries would have to close come winter.

"Companies would have to stop production, lay off their workers, supply chains would collapse, people would go into debt to pay their heating bills," he told Der Spiegel magazine.

The EU relied on Russia for as much as 40 per cent&nbsp;of its gas needs before the war - rising to 55 per cent&nbsp;for Germany - leaving a huge gap to fill in an already tight global gas market.

Also read |&nbsp;<a href="https://www.wionews.com/world/russia-has-nothing-against-ukraine-joining-eu-putin-489203">Russia has 'nothing against' Ukraine joining EU, says Vladimir Putin</a>

Inflation in the 19 countries sharing the euro currency has shot to all-time highs above 8% and the EU's executive expects growth to dip to 2.7 per cent this year.

Eurogroup chief Paschal Donohoe warned that the bloc must "acknowledge the risk we could face if inflation becomes embedded in our economies".

"If we don't pay attention then the whole EU economy will go into a recession with all its consequences," Belgian Prime Minister Alexander De Croo warned of a potential "tough winter" ahead.

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EU leaders on Friday warned that "cheap energy is gone" and agreed to boost preparations for further cuts in Russian gas, accusing Moscow of "weaponising" energy via a supply squeeze which Germany warned could partly shut its industry.

EU leaders on Friday warned that "cheap energy is gone" and agreed to boost preparations for further cuts in Russian gas, accusing Moscow of "weaponising" energy via a supply squeeze which Germany warned could partly shut its industry. A day after celebrations over setting Kyiv on the road to membership of the bloc, Friday's summit in Brussels was a sober reflection on the economic impact of Russia's invasion of Ukraine, with growing worries over soaring prices and warnings of a "tough winter". Also read | 'Historic moment': EU agrees to grant candidate status to Ukraine, Moldova "Inflation is a major concern for all of us," European Council chief Charles Michel told a news conference as the two-day summit ended. "Russia's war of aggression is pushing up the price of food, energy and commodities," he said, adding that leaders had agreed to closely coordinate their economic policy responses. The summit agreed few concrete steps but the leaders tasked the European Commission with finding more ways to secure "supply at affordable prices" because of "the weaponisation of gas by Russia." European Commission chief Ursula von der Leyen said the search for alternative supplies was already in progress, with U.S. LNG deliveries up 75 per cent this year from last year, and Norway pipeline gas deliveries up 15 per cent. Besides, the EU executive will present a plan on preparedness for more gas cuts from Russia to leaders in July she said, adding: "Hope for the best, prepare for the worst. That's what we are doing right now." The European Commission will come up with proposals and options to discuss at the next EU summit in October, including considering alternative market designs that would potentially include decoupling gas from the formation of the market price for electricity, von der Leyen said. "We are working on different models, not only to look into how to curb the energy prices or electricity prices but also to look at the market design, with the question: is the market design we have today still fit for purpose?", she said. One contentious issue is whether governments should step in to cap prices. Watch | Ukraine a step closer to EU membership amid Russian invasion? Spain and Portugal capped gas prices in their local electricity market this month, but other states warn price caps would disrupt energy markets and drain state coffers further, if governments had to pay the difference between the capped price and the price in international gas markets. 'Tough Winter' Leaders of the 27 EU nations placed the blame for a huge spike in prices and sagging global growth on the war that began exactly four months ago. "The notion of cheap energy is gone and the notion of Russian energy is essentially gone and we are all in the process of securing alternate sources," Latvian Prime Minister Krisjanis Karins said, adding governments must "support those portions of society that suffer the most". Following unprecedented Western sanctions imposed over the invasion, a dozen European countries have so far been thumped by cuts in gas flows from Russia. "It is only a matter of time before the Russians close down all gas shipments," said one EU official ahead of Friday's talks. German Economy Minister Robert Habeck warned his country was heading for a gas shortage if Russian supplies remained as low as now, and some industries would have to close come winter. "Companies would have to stop production, lay off their workers, supply chains would collapse, people would go into debt to pay their heating bills," he told Der Spiegel magazine. The EU relied on Russia for as much as 40 per cent of its gas needs before the war - rising to 55 per cent for Germany - leaving a huge gap to fill in an already tight global gas market. Also read | Russia has 'nothing against' Ukraine joining EU, says Vladimir Putin Inflation in the 19 countries sharing the euro currency has shot to all-time highs above 8% and the EU's executive expects growth to dip to 2.7 per cent this year. Eurogroup chief Paschal Donohoe warned that the bloc must "acknowledge the risk we could face if inflation becomes embedded in our economies". "If we don't pay attention then the whole EU economy will go into a recession with all its consequences," Belgian Prime Minister Alexander De Croo warned of a potential "tough winter" ahead. 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 Union plans for life without Russian gas amid inflation spike

US Fed chairman Jerome Powell has warned of the risk of a recession but said inflation is a global issue, not unique to United States. Meanwhile, gas and food prices are increasing in US .

US Fed chair Jerome Powell says recession a possibility

In United States, inflation is rocking American consumers at levels not experienced in over 40 years. From the weekly groceries to filling up the gas tank, rising prices have hit up Americans.

US inflation hits 40-year-high, Americans worry about price hikes

Inflation in the US has touched a 40-year-high, and the rising prices are now affecting America's kitchens. WION's Susan Tehrani gets you this report.

US inflation shows no signs of slowing down

Canadian inflation jumped to 7.7 percent in May, marking the largest annual increase in prices for goods and services in almost four decades, the government statistical agency said Wednesday.

The figure topped even the most bullish forecasts, following a 6.8 percent rise in prices the previous month.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/uk-inflation-hits-91-as-prices-continue-to-rise-at-their-fastest-rate-for-40-years-490633">UK inflation hits 9.1% as prices continue to rise at their fastest rate for 40 years</a>

The price increases, Statistics Canada said in a statement, were "broad-based, pinching the pocketbooks of Canadians and in some cases&nbsp;affecting their ability to meet day-to-day expenses."

Desjardins analyst Royce Mendes reacted by saying the agency "really should add a warning label to these scorching hot inflation prints."

"We had expected stronger price increases than the consensus, but this is very surprising," he said in a research note, warning that a "jumbo-sized" interest rate hike by the Bank of Canada is now likely coming.

Watch |&nbsp;Gravitas: Denmark and Canada end 50-year "Whiskey war"

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According to Statistics Canada, gasoline led the rise in prices, up 48 percent in the 12 months to May 31.

Groceries also cost more (up 9.7 percent) due to supply chain disruptions as well as higher transportation and input costs.&nbsp;

Cooking oil notably recorded its largest price increase ever. Costs of fresh vegetables such as onions, peppers and carrots, as well as fish also rose.

Also read |&nbsp;<a href="https://www.wionews.com/world/canada-lifts-covid-vaccine-mandate-for-domestic-outbound-travel-488408">Canada lifts Covid vaccine mandate for domestic, outbound travel</a>

Shelter and furniture costs were up too, along with prices for hotel rooms and restaurant meals, reflecting higher demand for travel following the lifting of most pandemic public health measures.

Wages, meanwhile, failed to keep pace, rising only 3.9 percent year over year in May.

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Canadian inflation jumped to 7.7 percent in May, marking the largest annual increase in prices for goods and services in almost four decades, the government statistical agency said Wednesday.

Canadian inflation jumped to 7.7 percent in May, marking the largest annual increase in prices for goods and services in almost four decades, the government statistical agency said Wednesday. The figure topped even the most bullish forecasts, following a 6.8 percent rise in prices the previous month. Also read | UK inflation hits 9.1% as prices continue to rise at their fastest rate for 40 years The price increases, Statistics Canada said in a statement, were "broad-based, pinching the pocketbooks of Canadians and in some cases affecting their ability to meet day-to-day expenses." Desjardins analyst Royce Mendes reacted by saying the agency "really should add a warning label to these scorching hot inflation prints." "We had expected stronger price increases than the consensus, but this is very surprising," he said in a research note, warning that a "jumbo-sized" interest rate hike by the Bank of Canada is now likely coming. Watch | Gravitas: Denmark and Canada end 50-year "Whiskey war" According to Statistics Canada, gasoline led the rise in prices, up 48 percent in the 12 months to May 31. Groceries also cost more (up 9.7 percent) due to supply chain disruptions as well as higher transportation and input costs. Cooking oil notably recorded its largest price increase ever. Costs of fresh vegetables such as onions, peppers and carrots, as well as fish also rose. Also read | Canada lifts Covid vaccine mandate for domestic, outbound travel Shelter and furniture costs were up too, along with prices for hotel rooms and restaurant meals, reflecting higher demand for travel following the lifting of most pandemic public health measures. Wages, meanwhile, failed to keep pace, rising only 3.9 percent year over year in May. 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.

Canada inflation jumps to 7.7%, highest since 1983

Singapore has announced a $1.1 billion dollar stimulus package to tackle the cost-of-living crisis. Do stimulus packages work during periods of high inflation? Why are other countries not announcing similar schemes? Palki Sharma tells you.

Gravitas: Singapore announces $1.1 bn inflation relief package

President Joe Biden's administration is reviewing the removal of some tariffs on China and a pause on the federal gas tax as well. This is after the United States struggles to tackle soaring gasoline prices and inflation.

The US looks at reducing China tariffs amid soaring inflation in the country

The world has witnessed its steepest weekly slide in world stocks since March 2020. Tighter monetary rules are worrying investors. Swiss Bank had to announce the first hike in 15 years.

Steepest weekly slide in World stocks: Markets heading to recession after record inflation?

Amid a decline in his approval ratings, US President Joe Biden spoke on inflation that has gripped the US economy. He says that Recession is not inevitable.

US President Joe Biden speaks on Inflation: 'Recession is not inevitable'

UK's cost of living crisis is set to worsen as experts believe food inflation may accelerate over the summer. Food prices could rise as much as 15%.

UK's cost of living crisis: Food inflation to accelerate over summer

The Bank of Japan (BoJ) on Friday stuck to its monetary easing policy even as other central banks raise interest rates to tame inflation, but said it would "pay due attention" to forex markets after the yen hit a 24-year low.

The bank will hold rates at minus 0.1 per cent and continue buying unlimited government bonds to maintain a low cap on long-term yields part of a decade-old plan to boost the world's third-largest economy.

The decision, announced after a two-day policy meeting, bucks a global monetary tightening trend aimed at battling sky-high fuel and food prices caused by the Ukraine war and supply chain snarls.

Also read |&nbsp;<a href="https://www.wionews.com/world/swiss-national-bank-ready-for-more-rate-hikes-after-shock-move-488720">Swiss National Bank ready for more rate hikes after shock move</a>

Rate hikes have been led by the US Federal Reserve, which this week announced its most aggressive increase in nearly 30 years and signalled more were in the pipeline.

The European Central Bank has said it plans to start a series of increases next month, while the Bank of England announced a fifth straight increase on Thursday and Switzerland surprised markets with its own rate hike, the first since 2007.

The widening chasm between Japanese and US monetary policy this week pushed the yen to its lowest level against the dollar since 1998, a cause for increasing concern that even the central bank made reference to in its policy statement.

"It is necessary to pay due attention to developments in financial and foreign exchange markets and their impact on Japan's economic activity and prices," the BoJ said, in an unusual reference to forex movements.

After the announcement, one dollar bought 134.63 yen, up from 133.41 yen earlier in the day.

'Targeting price stability'

Bank governor Haruhiko Kuroda told reporters that the yen's rapid depreciation is "undesirable for the economy, because it has increased uncertainty about the future and made it difficult for companies to draft business plans".

However, he added that "central banks do not target exchange rates. We run monetary policy targeting price stability".

Watch |&nbsp;Global market meltdown: Series of hikes by central banks

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Kuroda said the BoJ was not considering expanding the trading range of 10-year bonds, a move analysts say could help support the yen.

A weaker currency helps Japanese exporters as it inflates repatriated profits, noted Yoshikiyo Shimamine, executive chief economist of Dai-ichi Life Research Institute.

For the BoJ, it may be that "these benefits overwhelm the negative aspects of a cheaper yen high prices for imported goods, which causes people to suffer without sufficient pay rises," he told AFP.

The bank's ultra-loose monetary policy aims to achieve two-percent inflation, a target that has been stubbornly out of reach during years of price stagnation.

In April, core consumer prices hit the target for the first time since 2015, but the BoJ has cautioned that it sees recent rising prices as a temporary and volatile trend.

Also read |&nbsp;<a href="https://www.wionews.com/world/japanese-airline-ditches-pro-russia-logo-letter-z-associated-with-russias-invasion-of-ukraine-488744">Japanese airline ditches letter 'Z' logo, which may seem pro-Russia</a>

Inflation has been rising for months in the United States and elsewhere as buoyant demand for cars and other goods clashes with supply problems caused by COVID-19 lockdowns.

The problem became dramatically worse after Russia invaded Ukraine in February and Western nations imposed steep sanctions on Moscow, sending food and fuel prices soaring, a particular problem in resource-poor Japan.

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The Bank of Japan (BoJ) on Friday stuck to its monetary easing policy even as other central banks raise interest rates to tame inflation, but said it would "pay due attention" to forex markets after the yen hit a 24-year low.

The Bank of Japan (BoJ) on Friday stuck to its monetary easing policy even as other central banks raise interest rates to tame inflation, but said it would "pay due attention" to forex markets after the yen hit a 24-year low. The bank will hold rates at minus 0.1 per cent and continue buying unlimited government bonds to maintain a low cap on long-term yields part of a decade-old plan to boost the world's third-largest economy. The decision, announced after a two-day policy meeting, bucks a global monetary tightening trend aimed at battling sky-high fuel and food prices caused by the Ukraine war and supply chain snarls. Also read | Swiss National Bank ready for more rate hikes after shock move Rate hikes have been led by the US Federal Reserve, which this week announced its most aggressive increase in nearly 30 years and signalled more were in the pipeline. The European Central Bank has said it plans to start a series of increases next month, while the Bank of England announced a fifth straight increase on Thursday and Switzerland surprised markets with its own rate hike, the first since 2007. The widening chasm between Japanese and US monetary policy this week pushed the yen to its lowest level against the dollar since 1998, a cause for increasing concern that even the central bank made reference to in its policy statement. "It is necessary to pay due attention to developments in financial and foreign exchange markets and their impact on Japan's economic activity and prices," the BoJ said, in an unusual reference to forex movements. After the announcement, one dollar bought 134.63 yen, up from 133.41 yen earlier in the day. 'Targeting price stability' Bank governor Haruhiko Kuroda told reporters that the yen's rapid depreciation is "undesirable for the economy, because it has increased uncertainty about the future and made it difficult for companies to draft business plans". However, he added that "central banks do not target exchange rates. We run monetary policy targeting price stability". Watch | Global market meltdown: Series of hikes by central banks Kuroda said the BoJ was not considering expanding the trading range of 10-year bonds, a move analysts say could help support the yen. A weaker currency helps Japanese exporters as it inflates repatriated profits, noted Yoshikiyo Shimamine, executive chief economist of Dai-ichi Life Research Institute. For the BoJ, it may be that "these benefits overwhelm the negative aspects of a cheaper yen high prices for imported goods, which causes people to suffer without sufficient pay rises," he told AFP. The bank's ultra-loose monetary policy aims to achieve two-percent inflation, a target that has been stubbornly out of reach during years of price stagnation. In April, core consumer prices hit the target for the first time since 2015, but the BoJ has cautioned that it sees recent rising prices as a temporary and volatile trend. Also read | Japanese airline ditches letter 'Z' logo, which may seem pro-Russia Inflation has been rising for months in the United States and elsewhere as buoyant demand for cars and other goods clashes with supply problems caused by COVID-19 lockdowns. The problem became dramatically worse after Russia invaded Ukraine in February and Western nations imposed steep sanctions on Moscow, sending food and fuel prices soaring, a particular problem in resource-poor Japan. 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.

Bank of Japan keeps monetary easing despite global rate hikes

The US Federal Reserve raised its benchmark interest rate by 75 basis point. This is the biggest and most aggressive interest rate increase since 1994. The Federal Open Market Committee said that it decided to raise the target range for the benchmark borrowing rate to 1.5%-1.75%.

Federal reserve raises benchmark rates, biggest interest rate hike in 3 decades

In UK, Britons are subscribing less to music as they seek more savings. Britons cancelled over 1 million music subscriptions in the first quarter due to worsening cost of living crisis.

UK music subscriptions in decline as households seek more savings

A measure of Australian consumer sentiment slid for a seventh straight month to match pandemic lows in June amid an outsized rise in interest rates and surging inflation.

Inflation, Interest rates bite Australian consumers

Pakistan’s overall inflation topped 13%, with food prices increasing 17% in the month of May. The government has slashed food and fuel subsidies to secure assistance from the IMF. How are low-income families in Pakistan navigating this crisis? Mariam Wardak tells you.

South Asia Diary: How are Pakistani families navigating record inflation?

High inflation and costly crude has led to a steep fall in the value of currencies worldwide in comparison to the US dollar.

Steep fall in value of global currencies

Days after US inflation touched a 40-year high, Asian stocks sank today morning. Bond yields have ticked higher. Red hot US inflation reignited worries about even more aggressive federal policy.

Asian stock sink as high US inflation trigger worries

India's headline retail inflation eased to 7.04 per cent in May from an 8-year high of 7.79 per cent recorded in the previous month on softening food prices, government data showed on Monday.

A favourable base effect is among the major reasons for the decline in the inflation numbers in May 2022.

Consumer Price Index (CPI) based retail inflation stood at 6.3 per cent in May 2021.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/indian-rupee-slides-to-record-low-of-7782-against-us-dollar-486849">Indian rupee slides to record low of 77.82 against US dollar</a>

Despite the decline, the headline inflation remains above the Reserve Bank of India (RBI) upper tolerance level of 6 per cent for the fifth consecutive month.

Rural retail inflation declined to 7.01 per cent in May 2022 from 8.38 per cent recorded in the previous month.

CPI-based urban inflation declined to 7.08 per cent during the month under review from 7.09 per cent in April 2022, as per the data released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.

Food inflation based on Consumer Food Price Index (CFPI) eased to 7.97 per cent in May 2022 from 8.31 per cent in the previous month.

Watch |&nbsp;US inflation hits new 40-year high, no respite from rising costs

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In May 2021, CFPI-based food inflation stood at 5.01 per cent.

The CPI-based retail inflation is projected to remain at 7.5 per cent in the first quarter of the current financial year, as per the RBI.

In it's&nbsp;monetary policy review last week, the RBI raised the inflation forecast for the current financial year to 6.7 per cent from its earlier projection of 5.7 per cent.

As per the RBI's new projection announced after the Monetary Policy Committee (MPC) meeting, inflation is likely to remain above the central bank's upper tolerance limit of 6 per cent for the first three quarters of 2022-23.

Also read |&nbsp;<a href="https://www.wionews.com/india/rbi-raises-repo-rate-by-50bps-to-49-to-fight-inflation-pressure-486153">RBI raises repo rate by 50bps to 4.9% to fight inflation pressure</a>

In the second quarter CPI-based retail inflation is projected at 7.4 per cent and for the third quarter, it is projected at 6.2 per cent, as per the RBI.

Inflation is likely to come within the RBI's tolerance limit in the fourth quarter of 2022-23.

For the fourth quarter of the current financial year, the RBI's forecast for inflation is 5.8 per cent.

For the calculation of the May inflation data, the Ministry of Statistics and Programme Implementation said, "price data are collected from selected 1114 urban markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster".

"During the month of May 2022, NSO collected prices from 99.8 per cent of villages and 98.3 per cent urban markets while the market-wise prices reported therein were 90.0 per cent for rural and 93.1 per cent for urban", the ministry said in a statement.

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India's headline retail inflation eased to 7.04 per cent in May from an 8-year high of 7.79 per cent recorded in the previous month on softening food prices, government data showed on Monday.

India's headline retail inflation eased to 7.04 per cent in May from an 8-year high of 7.79 per cent recorded in the previous month on softening food prices, government data showed on Monday. A favourable base effect is among the major reasons for the decline in the inflation numbers in May 2022. Consumer Price Index (CPI) based retail inflation stood at 6.3 per cent in May 2021. Also read | Indian rupee slides to record low of 77.82 against US dollar Despite the decline, the headline inflation remains above the Reserve Bank of India (RBI) upper tolerance level of 6 per cent for the fifth consecutive month. Rural retail inflation declined to 7.01 per cent in May 2022 from 8.38 per cent recorded in the previous month. CPI-based urban inflation declined to 7.08 per cent during the month under review from 7.09 per cent in April 2022, as per the data released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation. Food inflation based on Consumer Food Price Index (CFPI) eased to 7.97 per cent in May 2022 from 8.31 per cent in the previous month. Watch | US inflation hits new 40-year high, no respite from rising costs In May 2021, CFPI-based food inflation stood at 5.01 per cent. The CPI-based retail inflation is projected to remain at 7.5 per cent in the first quarter of the current financial year, as per the RBI. In it's monetary policy review last week, the RBI raised the inflation forecast for the current financial year to 6.7 per cent from its earlier projection of 5.7 per cent. As per the RBI's new projection announced after the Monetary Policy Committee (MPC) meeting, inflation is likely to remain above the central bank's upper tolerance limit of 6 per cent for the first three quarters of 2022-23. Also read | RBI raises repo rate by 50bps to 4.9% to fight inflation pressure In the second quarter CPI-based retail inflation is projected at 7.4 per cent and for the third quarter, it is projected at 6.2 per cent, as per the RBI. Inflation is likely to come within the RBI's tolerance limit in the fourth quarter of 2022-23. For the fourth quarter of the current financial year, the RBI's forecast for inflation is 5.8 per cent. For the calculation of the May inflation data, the Ministry of Statistics and Programme Implementation said, "price data are collected from selected 1114 urban markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster". "During the month of May 2022, NSO collected prices from 99.8 per cent of villages and 98.3 per cent urban markets while the market-wise prices reported therein were 90.0 per cent for rural and 93.1 per cent for urban", the ministry said in a statement. Watch WION LIVE HERE:

Retail inflation eases to 7.04 per cent in May; remains above RBI tolerance band for 5th month in row

Oil&nbsp;prices dropped more than 2 dollars on Monday as a flare-up in&nbsp;COVID-19&nbsp;cases in Beijing dashed hopes for a rapid pick-up in China's fuel demand, while worries about global&nbsp;inflation&nbsp;and&nbsp;sluggish economic growth further depressed the market.

Brent crude futures fell 2.3 dollars, or 1.89 per cent, to 119.71 dollars a barrel by 0647 GMT, while US&nbsp;West Texas Intermediate crude was at 118.4 dollars&nbsp;a barrel, down 2.27 dollars, or 1.88 per cent.

Prices fell after Chinese officials warned on the weekend of a "ferocious" spread of&nbsp;COVID-19&nbsp;in the capital, where mass testing is planned until Wednesday.

Also read |&nbsp;<a href="https://www.wionews.com/world/nearly-200-covid-infections-linked-to-a-single-bar-in-beijing-487673">Nearly 200 Covid infections linked to a single bar in Beijing</a>

"China remains the significant near-term downside risk, but most view the gradual normalisation of Chinese demand&nbsp;as a powerful positive for&nbsp;oil", Stephen Innes of SPI Asset Management said in a note.

That was despite the potential for lockdown noise in coming weeks, Innes added, with demand&nbsp;still far from reflecting normal conditions.

Both global&nbsp;oil&nbsp;benchmarks rose more than 1 per cent&nbsp;last week after data showed robust&nbsp;oil&nbsp;demand&nbsp;in the world's top consumer, the United States, despite&nbsp;inflation&nbsp;concerns.

Watch |&nbsp;Gravitas: Western powers want to fix Russian oil price?

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Their rise was aided by hopes for a consumption rebound in the second-biggest global consumer China after lockdown measures were lifted starting June 1.

Concerns&nbsp;about further interest rate hikes after Friday's red-hot US inflation&nbsp;data are also weighing on global financial markets.

The US consumer price index increased a bigger-than-expected 8.6 per cent&nbsp;last month, in its largest annual increase since December&nbsp;1981, official figures showed, dashing hopes that&nbsp;inflation&nbsp;had peaked.

Also read |&nbsp;<a href="https://www.wionews.com/south-east-asia/mass-covid-testing-announced-for-beijings-chaoyang-district-amid-ferocious-outbreak-487540">Mass COVID-19 testing announced for Beijing's Chaoyang district amid 'ferocious' outbreak</a>

"Worries over slowing economic growth dampening global consumption in the coming&nbsp;months&nbsp;and&nbsp;persistent&nbsp;COVID&nbsp;curbs in China denting its consumption in the short term are dominating market sentiment", Vandana Hari, founder of analysis provider Vanda Insights, said in a note.

Oil&nbsp;producers&nbsp;and&nbsp;refiners are running at full throttle to meet peak summer demand, while traders are watching closely for any possible impact from labour disputes in Libya, Norway&nbsp;and&nbsp;South Korea on&nbsp;oil&nbsp;exports&nbsp;and&nbsp;consumption.

To boost supplies in the West, top exporter Saudi Arabia plans to divert some crude to Europe from China in July, traders said.

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Oil prices dropped more than 2 dollars on Monday as a flare-up in COVID-19 cases in Beijing dashed hopes for a rapid pick-up in China's fuel demand, while worries about global inflation and sluggish economic growth further depressed the market.

Oil prices dropped more than 2 dollars on Monday as a flare-up in COVID-19 cases in Beijing dashed hopes for a rapid pick-up in China's fuel demand, while worries about global inflation and sluggish economic growth further depressed the market. Brent crude futures fell 2.3 dollars, or 1.89 per cent, to 119.71 dollars a barrel by 0647 GMT, while US West Texas Intermediate crude was at 118.4 dollars a barrel, down 2.27 dollars, or 1.88 per cent. Prices fell after Chinese officials warned on the weekend of a "ferocious" spread of COVID-19 in the capital, where mass testing is planned until Wednesday. Also read | Nearly 200 Covid infections linked to a single bar in Beijing "China remains the significant near-term downside risk, but most view the gradual normalisation of Chinese demand as a powerful positive for oil", Stephen Innes of SPI Asset Management said in a note. That was despite the potential for lockdown noise in coming weeks, Innes added, with demand still far from reflecting normal conditions. Both global oil benchmarks rose more than 1 per cent last week after data showed robust oil demand in the world's top consumer, the United States, despite inflation concerns. Watch | Gravitas: Western powers want to fix Russian oil price? Their rise was aided by hopes for a consumption rebound in the second-biggest global consumer China after lockdown measures were lifted starting June 1. Concerns about further interest rate hikes after Friday's red-hot US inflation data are also weighing on global financial markets. The US consumer price index increased a bigger-than-expected 8.6 per cent last month, in its largest annual increase since December 1981, official figures showed, dashing hopes that inflation had peaked. Also read | Mass COVID-19 testing announced for Beijing's Chaoyang district amid 'ferocious' outbreak "Worries over slowing economic growth dampening global consumption in the coming months and persistent COVID curbs in China denting its consumption in the short term are dominating market sentiment", Vandana Hari, founder of analysis provider Vanda Insights, said in a note. Oil producers and refiners are running at full throttle to meet peak summer demand, while traders are watching closely for any possible impact from labour disputes in Libya, Norway and South Korea on oil exports and consumption. To boost supplies in the West, top exporter Saudi Arabia plans to divert some crude to Europe from China in July, traders said. 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.

Oil falls on Beijing's COVID-19 warning and inflation concerns

Bank of England will raise interest rates again as UK inflation heads for double digits. While UK forecast to be the weakest economy in 2023 among the rich nations, investors predict a quarter-point rate hike by the Bank.

Bank of England to raise interest rates as UK inflation heads for 10%

In the United States, the costs of gas, and other necessities jumped in May, raising inflation to a new 40-year high. Lower-income households are facing the burnt as May inflation rate stood at 8.6%. Watch this ground report!

US inflation hits new 40-year high, no respite from rising costs

US treasury secretary Janet Yellen has said she did not expect the US economy to tip into a recession but growth would slow down and gasoline prices were unlikely to fall anytime soon.

Americans pessimistic about the economy: Combating inflation US President Joe Biden's first priority

Gold inched lower on Thursday pressured by elevated US&nbsp;Treasury yields as the focus turned to US inflation data for the Federal Reserve's interest rate hike plan after the European Central Bank signalled a July increase.

The&nbsp;ECB&nbsp;said it will end bond buys on July 1 then raise rates by 25 basis points later that month. It will hike again in September and may opt for a bigger move then if the inflation outlook fails to improve.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/dollar-gains-as-us-stocks-fall-ecb-decision-on-tap-486375">Dollar gains as US stocks fall, ECB decision on tap</a>

Spot gold fell 0.3 per cent&nbsp;to 1,847.59 dollars per ounce by 1249 GMT, little changed after the&nbsp;ECB&nbsp;decision.

US gold futures shed 0.3 per cent&nbsp;to 1,850.00 dollars.

"It seems to be that the&nbsp;ECB&nbsp;are willing to raise rates, but not go particularly aggressive and that's the sentiment the (gold) market's taking away", said Nitesh Shah, analyst at WisdomTree.

Watch |&nbsp;Oil hovers near 13-week high, China optimism backs price surge

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"Inflation upside surprises are always a catalyst for gold price moves. But on the flip side, you got the Fed reacting to these numbers,&nbsp;the market right now is expecting back to back 50 bps rate increases that will act as a headwind", Shah added.

The monthly US&nbsp;consumer price index data on Friday could signal whether the Fed will continue its aggressive policy tightening post July.

The benchmark US&nbsp;10-year Treasury yields held steady near the key 3 per cent&nbsp;threshold, eroding gold's appeal.&nbsp;

Rising interest rates increase the opportunity cost of holding non-yielding bullion, even though the metal is considered a safe haven amid political and economic uncertainties.

Also read |&nbsp;<a href="https://www.wionews.com/world/shrinkflation-is-on-the-rise-companies-reducing-package-size-without-lowering-price-486505">‘Shrinkflation’ is on the rise: Companies reducing package size, without lowering price</a>

"We'll probably have to wait until tomorrow's CPI report before we see a sustainable move in either direction, but we've taken comfort that ETF (exchange-traded fund) flows into gold yesterday were their strongest in a month", City Index senior market analyst Matt Simpson said.

Spot silver dipped 0.5 per cent&nbsp;to 21.92 dollars per ounce, while platinum shed 2.1 per cent, to 984.71 dollars. Palladium fell 0.8 per cent&nbsp;to 1,927.59 dollars.

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Gold inched lower on Thursday pressured by elevated US Treasury yields as the focus turned to US inflation data for the Federal Reserve's interest rate hike plan after the European Central Bank signalled a July increase.

Gold inched lower on Thursday pressured by elevated US Treasury yields as the focus turned to US inflation data for the Federal Reserve's interest rate hike plan after the European Central Bank signalled a July increase. The ECB said it will end bond buys on July 1 then raise rates by 25 basis points later that month. It will hike again in September and may opt for a bigger move then if the inflation outlook fails to improve. Also read | Dollar gains as US stocks fall, ECB decision on tap Spot gold fell 0.3 per cent to 1,847.59 dollars per ounce by 1249 GMT, little changed after the ECB decision. US gold futures shed 0.3 per cent to 1,850.00 dollars. "It seems to be that the ECB are willing to raise rates, but not go particularly aggressive and that's the sentiment the (gold) market's taking away", said Nitesh Shah, analyst at WisdomTree. Watch | Oil hovers near 13-week high, China optimism backs price surge "Inflation upside surprises are always a catalyst for gold price moves. But on the flip side, you got the Fed reacting to these numbers, the market right now is expecting back to back 50 bps rate increases that will act as a headwind", Shah added. The monthly US consumer price index data on Friday could signal whether the Fed will continue its aggressive policy tightening post July. The benchmark US 10-year Treasury yields held steady near the key 3 per cent threshold, eroding gold's appeal. Rising interest rates increase the opportunity cost of holding non-yielding bullion, even though the metal is considered a safe haven amid political and economic uncertainties. Also read | ‘Shrinkflation’ is on the rise: Companies reducing package size, without lowering price "We'll probably have to wait until tomorrow's CPI report before we see a sustainable move in either direction, but we've taken comfort that ETF (exchange-traded fund) flows into gold yesterday were their strongest in a month", City Index senior market analyst Matt Simpson said. Spot silver dipped 0.5 per cent to 21.92 dollars per ounce, while platinum shed 2.1 per cent, to 984.71 dollars. Palladium fell 0.8 per cent to 1,927.59 dollars. 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.

Gold subdued on firm yields with US inflation in focus

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