Cash-strapped Pakistan, which is looking for ways to rein in inflation and save electricity, has announced a series of austerity measures to tackle the nationwide fuel crisis.

Among the significant measures were the curtailment of overseas trips for officials, fuel quotas for government employees to be cut by 40 per cent, and reimposing five-day workweek.

The move comes at a time when the South Asian country is hit by hours-long power outages, with demand outstripping supply during the peak summer months. Soaring global fuel prices have also increased pressure on the external account and the local currency has hit record lows against the dollar.

Apart from that, announcements were made to stop purchases of new vehicles for use by officials and appliances such as air conditioners.

Speaking to reporters, Information Minister Marriyum Aurangzeb said the nation is aiming to lower energy consumption at government offices by 10 per cent.

Lunches, dinners and high teas will no longer be served to officials, and the government will also consider&nbsp;making&nbsp;Friday a mandatory work-from-home day for its employees.

Watch |&nbsp;Climate Change Impact: 'Pakistan to become water-scarce country'

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Aurangzeb said Prime Minister Shehbaz Sharif had formed a committee to determine how “efficiency is not affected” and how the government “may benefit from it in an effective manner”.

Discussions are being carried out with to switch off streetlights on alternate days.

“A complete ban has been imposed on official visits by government officials, functionaries and ministries. Only obligatory visits and very important bilateral visits will be allowed,” she said, adding that a committee would decide the importance of each visit before giving approval.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-needs-usd-41-billion-in-next-12-months-says-finance-minister-486098" hreflang="en">Pakistan needs USD 41 billion in next 12 months, says finance minister</a>

Aurangzeb said there was currently a gap of 4,600 megawatts between supply and demand, with supply at 21,000 megawatts and demand at 25,600 megawatts.

In the wake of soaring energy prices, Pakistan is facing a balance of payment crisis with forex reserves falling below $10 billion, enough for around 45 days of imports, as well as double-digit inflation.

(With inputs from agencies)

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Cash-strapped Pakistan, which is looking for ways to rein in inflation and save electricity, has announced a series of austerity measures to tackle the nationwide fuel crisis.

Cash-strapped Pakistan, which is looking for ways to rein in inflation and save electricity, has announced a series of austerity measures to tackle the nationwide fuel crisis. Among the significant measures were the curtailment of overseas trips for officials, fuel quotas for government employees to be cut by 40 per cent, and reimposing five-day workweek. The move comes at a time when the South Asian country is hit by hours-long power outages, with demand outstripping supply during the peak summer months. Soaring global fuel prices have also increased pressure on the external account and the local currency has hit record lows against the dollar. Apart from that, announcements were made to stop purchases of new vehicles for use by officials and appliances such as air conditioners. Speaking to reporters, Information Minister Marriyum Aurangzeb said the nation is aiming to lower energy consumption at government offices by 10 per cent. Lunches, dinners and high teas will no longer be served to officials, and the government will also consider making Friday a mandatory work-from-home day for its employees. Watch | Climate Change Impact: 'Pakistan to become water-scarce country' Aurangzeb said Prime Minister Shehbaz Sharif had formed a committee to determine how “efficiency is not affected” and how the government “may benefit from it in an effective manner”. Discussions are being carried out with to switch off streetlights on alternate days. “A complete ban has been imposed on official visits by government officials, functionaries and ministries. Only obligatory visits and very important bilateral visits will be allowed,” she said, adding that a committee would decide the importance of each visit before giving approval. Also read | Pakistan needs USD 41 billion in next 12 months, says finance minister Aurangzeb said there was currently a gap of 4,600 megawatts between supply and demand, with supply at 21,000 megawatts and demand at 25,600 megawatts. In the wake of soaring energy prices, Pakistan is facing a balance of payment crisis with forex reserves falling below $10 billion, enough for around 45 days of imports, as well as double-digit inflation. (With inputs from agencies) WATCH WION LIVE HERE

Cash-strapped Pakistan announces austerity measures as soaring energy cost, inflation bite hard

The OECD warned Wednesday that the world economy will pay a "hefty price" for Russia's invasion of Ukraine as it slashed its 2022 growth forecast and projected higher inflation.

The Paris-based organisation, which represents 38 mostly developed countries, is the latest institution to predict lower GDP growth due to the conflict, which has sent food and energy prices soaring.

In its latest economic outlook, the Organisation for Economic Co-operation and Development said global gross domestic product would grow by three percent in 2022, down sharply from the 4.5 percent estimated in December.

Also read |&nbsp;<a href="https://www.wionews.com/world/world-bank-lowers-2022-global-growth-forecast-to-29-from-41-in-january-486030">World Bank lowers 2022 global growth forecast to 2.9% from 4.1% in January</a>

The OECD also doubled its forecast for inflation among its members -- which range from the United States to Australia, Japan, and Latin American and European nations -- to 8.5 percent, its highest level since 1988.&nbsp;

"The world is set to pay a hefty price for Russia's war against Ukraine," wrote the OECD's chief economist and deputy secretary-general, Laurence Boone, adding that a "humanitarian crisis is unfolding before our eyes".

"The extent to which growth will be lower and inflation higher will depend on how the war evolves, but it is clear the poorest will be hit hardest," Boone said.

"The price of this war is high and will need to be shared."

Before the war broke out, the outlook had appeared "broadly favourable" for 2022-23, with growth and inflation expected to return to normal after the devastating Covid-19 pandemic, said the OECD.

However, "the invasion of Ukraine, along with shutdowns in major cities and ports in China due to the zero-Covid policy, has generated a new set of adverse shocks," it said.

Food shortage risk

The OECD was supposed to publish its outlook in March, but it delayed its detailed assessment until now due to uncertainty over the war. At the time, it said the conflict could cut global GDP growth by "over one percentage point".

The World Bank revised its own figures on Tuesday, lowering its global growth forecast from 4.1 percent to 2.9 percent. The IMF cut its forecast by nearly one point to 3.6 percent in April.

The OECD cut its growth forecast for the United States from 3.7 percent to 2.5 percent and that of China, the world's second biggest economy, from 5.1 percent to 4.4 percent. The eurozone's GPD is now seen growing by 2.6 percent instead of 4.3 percent while Britain's outlook was lowered to 3.6 percent from 4.7 percent.

The OECD noted that commodity prices had risen, hitting real income and spending, "particularly for the most vulnerable households".

"In many emerging-market economies the risks of food shortages are high given the reliance on agricultural exports from Russia and Ukraine," it said.

The report warned that the "effects of the war in Ukraine may be even greater than assumed", raising as an example a scenario of Russia cutting gas supplies to Europe.

As central banks tighten their monetary policies to counter inflation, the report said sharp increases of interest rates could also hit growth more than anticipated.

Covid risk

The Covid pandemic, meanwhile, could take another turn for the worse.

"New more aggressive or contagious variants may emerge, while the application of zero-Covid policies in large economies like China has the potential to sap global demand and disrupt supply for some time to come," the OECD said.

Faced with these challenges, governments needed to protect the most vulnerable from the economic shockwaves, it added.

Also read |&nbsp;<a href="https://www.wionews.com/videos/kyrgyzstan-endures-soaring-inflation-and-poverty-residents-struggle-to-find-work-486128">Kyrgyzstan endures soaring inflation and poverty, residents struggle to find work</a>

In the short term, "temporary, timely and well-targeted" fiscal measures would help the poorest households, the OECD said.

Over the medium- and long-term, governments would have to invest more in clean energy and defence spending.

"The world is already paying the price for Russia's aggression," wrote Boone.

"The choices made by policymakers and citizens will be crucial to determining how that price will be distributed across people and countries."

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The OECD warned Wednesday that the world economy will pay a "hefty price" for Russia's invasion of Ukraine as it slashed its 2022 growth forecast and projected higher inflation.

The OECD warned Wednesday that the world economy will pay a "hefty price" for Russia's invasion of Ukraine as it slashed its 2022 growth forecast and projected higher inflation. The Paris-based organisation, which represents 38 mostly developed countries, is the latest institution to predict lower GDP growth due to the conflict, which has sent food and energy prices soaring. In its latest economic outlook, the Organisation for Economic Co-operation and Development said global gross domestic product would grow by three percent in 2022, down sharply from the 4.5 percent estimated in December. Also read | World Bank lowers 2022 global growth forecast to 2.9% from 4.1% in January The OECD also doubled its forecast for inflation among its members -- which range from the United States to Australia, Japan, and Latin American and European nations -- to 8.5 percent, its highest level since 1988. "The world is set to pay a hefty price for Russia's war against Ukraine," wrote the OECD's chief economist and deputy secretary-general, Laurence Boone, adding that a "humanitarian crisis is unfolding before our eyes". "The extent to which growth will be lower and inflation higher will depend on how the war evolves, but it is clear the poorest will be hit hardest," Boone said. "The price of this war is high and will need to be shared." Before the war broke out, the outlook had appeared "broadly favourable" for 2022-23, with growth and inflation expected to return to normal after the devastating Covid-19 pandemic, said the OECD. However, "the invasion of Ukraine, along with shutdowns in major cities and ports in China due to the zero-Covid policy, has generated a new set of adverse shocks," it said. Food shortage risk The OECD was supposed to publish its outlook in March, but it delayed its detailed assessment until now due to uncertainty over the war. At the time, it said the conflict could cut global GDP growth by "over one percentage point". The World Bank revised its own figures on Tuesday, lowering its global growth forecast from 4.1 percent to 2.9 percent. The IMF cut its forecast by nearly one point to 3.6 percent in April. The OECD cut its growth forecast for the United States from 3.7 percent to 2.5 percent and that of China, the world's second biggest economy, from 5.1 percent to 4.4 percent. The eurozone's GPD is now seen growing by 2.6 percent instead of 4.3 percent while Britain's outlook was lowered to 3.6 percent from 4.7 percent. The OECD noted that commodity prices had risen, hitting real income and spending, "particularly for the most vulnerable households". "In many emerging-market economies the risks of food shortages are high given the reliance on agricultural exports from Russia and Ukraine," it said. The report warned that the "effects of the war in Ukraine may be even greater than assumed", raising as an example a scenario of Russia cutting gas supplies to Europe. As central banks tighten their monetary policies to counter inflation, the report said sharp increases of interest rates could also hit growth more than anticipated. Covid risk The Covid pandemic, meanwhile, could take another turn for the worse. "New more aggressive or contagious variants may emerge, while the application of zero-Covid policies in large economies like China has the potential to sap global demand and disrupt supply for some time to come," the OECD said. Faced with these challenges, governments needed to protect the most vulnerable from the economic shockwaves, it added. Also read | Kyrgyzstan endures soaring inflation and poverty, residents struggle to find work In the short term, "temporary, timely and well-targeted" fiscal measures would help the poorest households, the OECD said. Over the medium- and long-term, governments would have to invest more in clean energy and defence spending. "The world is already paying the price for Russia's aggression," wrote Boone. "The choices made by policymakers and citizens will be crucial to determining how that price will be distributed across people and countries." 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.

OECD doubles 2022 inflation forecast in 38-nation group to 8.5%

Shehbaz Sharif's government in Pakistan has launched an austerity drive ahead of its June 10th annual budget. Pakistan's government announced a list of measures applicable on all departments and officials to curb unnecessary expenditure.

Pakistan: Govt announces cost-cutting measures, launches austerity drive

In Kyrgyzstan, residents are struggling to make ends meet due to exponential increase of the cost of living and lack of jobs. Covid-19 pandemic and the war in Ukraine have only worsened the situation.

Kyrgyzstan endures soaring inflation and poverty, residents struggle to find work

Egyptian ambassador to India Wael Hamed has dismissed reports of Indian wheat being infected with pests even as the country receives its first consignments.

Speaking to WION, ambassador Hamed said, "These are miscommunicated reports... Egypt, as a big wheat importer, stands by its deals, provided they observe the requirements and have undergone the inspection procedures agreed with India as the exporting country."

In April, Egypt gave a go-ahead to import wheat from India. That month, officials from Egypt’s Agriculture Quarantine and Pest Risk Analysis department visited various processing units, port facilities and farms in Maharashtra, Madhya Pradesh, and Punjab.

It is pertinent to mention that the north African country is one of the largest importers of wheat in the world and has a major say in global wheat prices with its import capacity.

The envoy explained that the "consignments not intended for Egypt are simply that... not intended for Egypt. On the other hand, consignments intended for Egypt cannot possibly have pests since the inspections take place before loading the cargo ships.”

Egypt has been traditionally importing wheat from Russia and Ukraine. But this has been impacted by the Russian invasion of Ukraine, chocking the supplies.

New markets, especially India, are being looked into internationally. India is one of the largest producers of wheat globally and has got requests from over 20 countries as the prices of the food commodity increase.

Last financial year, India exported 7 million tonnes of wheat. Amid the heatwave and inflation, New Delhi put a ban on the export of wheat. But it has allowed government-to-government transactions.

External Affairs Minister Dr S Jaishankar said, "We are not going to give speculators an open access to the Indian market so that Indian customers and the least developed nations of the world are at the short end.”

He highlighted that India’s aim is to prevent a "diversion to high-income countries because what we saw happening to vaccines, we don't want to see happen with wheat—wherein which rich people were vaccinated, and the poor left out."

India has exported wheat to 23 countries this year.

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Egyptian ambassador to India Wael Hamed has dismissed reports of Indian wheat being infected with pests even as the country receives its first consignments. Speaking to WION, ambassador Hamed said, "These are miscommunicated reports.

Egyptian ambassador to India Wael Hamed has dismissed reports of Indian wheat being infected with pests even as the country receives its first consignments. Speaking to WION, ambassador Hamed said, "These are miscommunicated reports... Egypt, as a big wheat importer, stands by its deals, provided they observe the requirements and have undergone the inspection procedures agreed with India as the exporting country." In April, Egypt gave a go-ahead to import wheat from India. That month, officials from Egypt’s Agriculture Quarantine and Pest Risk Analysis department visited various processing units, port facilities and farms in Maharashtra, Madhya Pradesh, and Punjab. It is pertinent to mention that the north African country is one of the largest importers of wheat in the world and has a major say in global wheat prices with its import capacity. The envoy explained that the "consignments not intended for Egypt are simply that... not intended for Egypt. On the other hand, consignments intended for Egypt cannot possibly have pests since the inspections take place before loading the cargo ships.” Egypt has been traditionally importing wheat from Russia and Ukraine. But this has been impacted by the Russian invasion of Ukraine, chocking the supplies. New markets, especially India, are being looked into internationally. India is one of the largest producers of wheat globally and has got requests from over 20 countries as the prices of the food commodity increase. Last financial year, India exported 7 million tonnes of wheat. Amid the heatwave and inflation, New Delhi put a ban on the export of wheat. But it has allowed government-to-government transactions. External Affairs Minister Dr S Jaishankar said, "We are not going to give speculators an open access to the Indian market so that Indian customers and the least developed nations of the world are at the short end.” He highlighted that India’s aim is to prevent a "diversion to high-income countries because what we saw happening to vaccines, we don't want to see happen with wheat—wherein which rich people were vaccinated, and the poor left out." India has exported wheat to 23 countries this year. WATCH WION LIVE HERE

Egypt envoy Hamed dismisses reports of Indian wheat being infected with pests

Job gains maintained their impressive run in May, even as government policymakers took steps to cool the economy and ease inflation.

The Labor Department reported Friday that employers added 390,000 jobs, the 17th straight monthly gain.

The unemployment rate was 3.6 per cent&nbsp;for the third straight month, near a half-century low. Average hourly earnings for employees rose by 10 cents, or 0.3 per cent&nbsp;on a monthly basis, and were 5.2 per cent&nbsp;higher than a year earlier.

Record levels of consumer spending, which makes up about 70 per cent of the economy, have driven business expansion and job creation, as companies try to keep up with demand for a wide variety of goods and services. The hiring push has lent some workers a degree of agency regarding pay and conditions that is unfamiliar to both job seekers and employers.

Yet the Federal Reserve is worried that rising labor costs will be passed along to consumers, constraining efforts to bring down inflation, which is near a 40-year high.

Last month, Fed Chair Jerome Powell stressed that his institution’s attempts to cool off prices were a part of ensuring a more sustainable form of full employment. “We’ve got to get back to price stability so that we can have a labor market where people’s wages aren’t being eaten up by inflation,” he said. “And where we can have a long expansion, too.”

The environment for job seekers remains as strong as it has been since the 1960s, some economists say. The Kansas City Fed’s labour market conditions index — which is based on 24 measures tracking the market’s tightness — is near highs last seen in 2000.

In a speech, this week to the Economic Club of Memphis, Tennessee, James Bullard, president of the Federal Reserve Bank of St. Louis, noted that “real-time indicators” of economic growth suggested expansion would continue for several quarters.

It appears that fewer Americans will be able to fully share in a continued expansion, however. There are growing signals that lower-income families, which have been hit the hardest by price increases and used up much of their pandemic-era savings, are beginning to pull back on discretionary purchases. The cost of groceries is an intensifying headache, and energy prices, which are roughly 30 per cent&nbsp;higher than a year ago, are forcing people to make difficult decisions about what goods and services to cut back on to prevent further erosion of their budgets.

Inflation has already made a striking impact: Personal savings as a percentage of personal disposable income fell to 4.4 per cent&nbsp;in April, the Commerce Department reported last week. It was the lowest rate since 2008, and far from the anomalous high of 33 per cent&nbsp;in April 2020 at the height of federal aid.

Throughout the year, inflation and general volatility in the economy have created a dissonance between sour consumer sentiment and relatively positive raw data. Checking accounts are still above 2019 levels for nearly all income groups. And the share of households under duress as a result of debt burdens is historically low. Auto loan delinquency rates are low. And new bankruptcies and debt-collection proceedings are at their lowest level since the New York Fed began collecting data on them in 1999.

The Fed’s aim is to engineer a modest economic slowdown that avoids a painful recession. Gregory Daco, chief economist at EY-Parthenon, a consulting firm, insisted that “whether we have a recession or not isn’t what matters” compared with the characteristics of any potential downturn, such as its depth and duration.

“Recency bias has us thinking of a recession being like the covid&nbsp;crisis, or the global financial crisis, but these were ‘once in a hundred years’ events which are unlikely to repeat in the near term,” he said. “At the same time, the elevated inflation backdrop has brought comparisons with the 1970s, but there again the situation was different, lasting 15 years from the late 1960s to the early 1980s and featuring two moderate and two deep recessions.”

Job gains maintained their impressive run in May, even as government policymakers took steps to cool the economy and ease inflation. The Labor Department reported Friday that employers added 390,000 jobs, the 17th straight monthly gain.

Job gains maintained their impressive run in May, even as government policymakers took steps to cool the economy and ease inflation. The Labor Department reported Friday that employers added 390,000 jobs, the 17th straight monthly gain. The unemployment rate was 3.6 per cent for the third straight month, near a half-century low. Average hourly earnings for employees rose by 10 cents, or 0.3 per cent on a monthly basis, and were 5.2 per cent higher than a year earlier. Record levels of consumer spending, which makes up about 70 per cent of the economy, have driven business expansion and job creation, as companies try to keep up with demand for a wide variety of goods and services. The hiring push has lent some workers a degree of agency regarding pay and conditions that is unfamiliar to both job seekers and employers. Yet the Federal Reserve is worried that rising labor costs will be passed along to consumers, constraining efforts to bring down inflation, which is near a 40-year high. Last month, Fed Chair Jerome Powell stressed that his institution’s attempts to cool off prices were a part of ensuring a more sustainable form of full employment. “We’ve got to get back to price stability so that we can have a labor market where people’s wages aren’t being eaten up by inflation,” he said. “And where we can have a long expansion, too.” The environment for job seekers remains as strong as it has been since the 1960s, some economists say. The Kansas City Fed’s labour market conditions index — which is based on 24 measures tracking the market’s tightness — is near highs last seen in 2000. In a speech, this week to the Economic Club of Memphis, Tennessee, James Bullard, president of the Federal Reserve Bank of St. Louis, noted that “real-time indicators” of economic growth suggested expansion would continue for several quarters. It appears that fewer Americans will be able to fully share in a continued expansion, however. There are growing signals that lower-income families, which have been hit the hardest by price increases and used up much of their pandemic-era savings, are beginning to pull back on discretionary purchases. The cost of groceries is an intensifying headache, and energy prices, which are roughly 30 per cent higher than a year ago, are forcing people to make difficult decisions about what goods and services to cut back on to prevent further erosion of their budgets. Inflation has already made a striking impact: Personal savings as a percentage of personal disposable income fell to 4.4 per cent in April, the Commerce Department reported last week. It was the lowest rate since 2008, and far from the anomalous high of 33 per cent in April 2020 at the height of federal aid. Throughout the year, inflation and general volatility in the economy have created a dissonance between sour consumer sentiment and relatively positive raw data. Checking accounts are still above 2019 levels for nearly all income groups. And the share of households under duress as a result of debt burdens is historically low. Auto loan delinquency rates are low. And new bankruptcies and debt-collection proceedings are at their lowest level since the New York Fed began collecting data on them in 1999. The Fed’s aim is to engineer a modest economic slowdown that avoids a painful recession. Gregory Daco, chief economist at EY-Parthenon, a consulting firm, insisted that “whether we have a recession or not isn’t what matters” compared with the characteristics of any potential downturn, such as its depth and duration. “Recency bias has us thinking of a recession being like the covid crisis, or the global financial crisis, but these were ‘once in a hundred years’ events which are unlikely to repeat in the near term,” he said. “At the same time, the elevated inflation backdrop has brought comparisons with the 1970s, but there again the situation was different, lasting 15 years from the late 1960s to the early 1980s and featuring two moderate and two deep recessions.”

US added 390,000 jobs in May amid efforts to cool the economy

Here we bring you a quick round-up of all latest news, top headlines and international breakings from all across the globe, stay tuned with Gravitas for more!

Gravitas Global Headlines: Sri Lanka inflation, Russia-Ukraine war continues

Inflation in the 19 countries of the eurozone soared to 8.1% in May from 7.4% in April. Rising prices have been exacerbated over recent months by the war in Ukraine, particularly food and energy costs.

Eurozone inflation hits record 8.1% amid rising food and energy costs

The Covid-19 pandemic seems to be under control for now in several parts of the world, normalcy is returning but what is not normal is the cost of lunch in the US. Lunch inflation is here and it's pinching office goers pockets.

Groceries become costlier in United States, 'Lunchflation' is here to stay

The Russian Central Bank cut interest rates from 14% to 11%, after inflation slowed to 17.5% in May compared to 17.8% in April, which is now forecasting that annual inflation will decrease to 5–7% in 2023 and return to 4% in 2024.

Russian Central Bank cuts interest rates from 14% to 11%

As millions of American employees return to their offices after working from home for almost two years, they are being greeted by high prices on almost every items.

Food, commuting, rising gas prices and soaring inflation are putting a severe dent into the worker’s pockets, making it difficult to go back to the office. What makes this journey even more excruciating is that their daily expenses aren’t keeping up with their earnings, reports CNN.

According to the Labor Department, food prices shot by up 9.4 per cent in April —the biggest jump since April 1981. And grocery store prices increased 10.8 per cent for the year ended in April.

Office workers are seeing higher costs on everything— from their morning coffee to their lunchtime salad.

For example, Starbucks raised prices in the US earlier this year and in October 2021 and added that the prices could go even higher.

Salad chain Sweetgreen has raised its menu prices by 10% since the start of 2021, the company said in its most recent earnings report.

Similar trends are being witnessed across restaurants and other companies in the US that have raised menu prices due to global inflation.&nbsp;

Experts are calling this phenomenon “Lunchflation”.

CNN&nbsp;gathered public opinion where several people agreed that work-related expenses were quite real.&nbsp;

"Lunchflation is 100% real, everything is more expensive," Kelly Yau McClay, who lives in Potomac, Maryland, told CNN.

But for some, returning to the workplace have bright a slight relief. The pandemic has altered the spending habits of millions of Americans with expenses on dining out being replaced with high grocery bills and home-cooked meals.

Sara Hill, who works in the insurance industry in Buffalo, New York, noticed that her grocery saw her food budget increase when she and her four children were home full-time.

"I was eating more food because I am closer to the kitchen... my food spending was still increasing because we were all home," said Hill.

(With inputs from agencies)

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As millions of American employees return to their offices after working from home for almost two years, they are being greeted by high prices on almost every items.

As millions of American employees return to their offices after working from home for almost two years, they are being greeted by high prices on almost every items. Food, commuting, rising gas prices and soaring inflation are putting a severe dent into the worker’s pockets, making it difficult to go back to the office. What makes this journey even more excruciating is that their daily expenses aren’t keeping up with their earnings, reports CNN. According to the Labor Department, food prices shot by up 9.4 per cent in April —the biggest jump since April 1981. And grocery store prices increased 10.8 per cent for the year ended in April. Office workers are seeing higher costs on everything— from their morning coffee to their lunchtime salad. For example, Starbucks raised prices in the US earlier this year and in October 2021 and added that the prices could go even higher. Salad chain Sweetgreen has raised its menu prices by 10% since the start of 2021, the company said in its most recent earnings report. Similar trends are being witnessed across restaurants and other companies in the US that have raised menu prices due to global inflation. Experts are calling this phenomenon “Lunchflation”. CNN gathered public opinion where several people agreed that work-related expenses were quite real. "Lunchflation is 100% real, everything is more expensive," Kelly Yau McClay, who lives in Potomac, Maryland, told CNN. But for some, returning to the workplace have bright a slight relief. The pandemic has altered the spending habits of millions of Americans with expenses on dining out being replaced with high grocery bills and home-cooked meals. Sara Hill, who works in the insurance industry in Buffalo, New York, noticed that her grocery saw her food budget increase when she and her four children were home full-time. "I was eating more food because I am closer to the kitchen... my food spending was still increasing because we were all home," said Hill. (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.

Now, American workers have a new headache. It’s called ‘Lunchflation’

UK Finance Minister Rishi Sunak on Thursday unveiled his government’s £15 billion (US $18.85 billion) cost-of-living bailout package to help millions of people struggling with the worst cost-of-living crisis&nbsp;in decades.

The announcement comes in the wake of soaring energy costs, which rose by more than 40 per cent&nbsp;following the Russia-Ukraine war.

Apart from the energy crisis, UK is also battling one of its highest inflation in 40 years that has severely dented the pockets of average consumers in the country, with average earnings seeing a drop by 1.9 per cent from a year earlier, the biggest decline since 2013.

With the shadow of Susan Grey's report&nbsp;on lockdown parties hanging over Boris Johnson’s government’s head, Sunak addressed the House of Commons,&nbsp;by talking about the inflation scenario, saying that the government cannot “solve every problem”.

But Sunak said he would not allow people to be “set so far back they might never recover” - boasting that cost-of-living support now totals £37billion this year.

He cautioned that inflation was becoming entrenched, saying: “Over the course of the year the situation has evolved and got more serious,” Daily Mail reported.

Among the slew of announcements include:

1) One-off payments of different amounts will be given to the most vulnerable - the elderly, those with disabilities, and those with the lowest incomes

2) All households will receive a £400 discount on energy bills

3) Eight million of the lowest income families will also get a one-off payment of £650, Sunak says

4) He confirms a temporary windfall tax on oil and gas giants to fund the payments - a move called for by Labour

Watch |&nbsp;UK: Rishi Sunak to unveil cost of living support package

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5) There will be a one-off disability cost of living payment of £150, and pensioners will get £300

6) The UK government has also introduced a £5 billion ($6.3 billion) tax on the windfall profits of its oil and gas companies.

7) Sunak unveiled the new 25% tax on the profits of energy producers such as BP and Shell on Thursday. The levy will be phased out once oil and gas prices fall back to more normal levels, he said.

8) He said, “The oil and gas sector is making extraordinary profits, not as the result of recent changes, risk-taking or innovation or efficiency, but as the result of surging global commodity prices."

(With inputs from agencies)

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UK Finance Minister Rishi Sunak on Thursday unveiled his government’s £15 billion (US $18.85 billion) cost-of-living bailout package to help millions of people struggling with the worst cost-of-living crisis in decades.

UK Finance Minister Rishi Sunak on Thursday unveiled his government’s £15 billion (US $18.85 billion) cost-of-living bailout package to help millions of people struggling with the worst cost-of-living crisis in decades. The announcement comes in the wake of soaring energy costs, which rose by more than 40 per cent following the Russia-Ukraine war. Apart from the energy crisis, UK is also battling one of its highest inflation in 40 years that has severely dented the pockets of average consumers in the country, with average earnings seeing a drop by 1.9 per cent from a year earlier, the biggest decline since 2013. With the shadow of Susan Grey's report on lockdown parties hanging over Boris Johnson’s government’s head, Sunak addressed the House of Commons, by talking about the inflation scenario, saying that the government cannot “solve every problem”. But Sunak said he would not allow people to be “set so far back they might never recover” - boasting that cost-of-living support now totals £37billion this year. He cautioned that inflation was becoming entrenched, saying: “Over the course of the year the situation has evolved and got more serious,” Daily Mail reported. Among the slew of announcements include: 1) One-off payments of different amounts will be given to the most vulnerable - the elderly, those with disabilities, and those with the lowest incomes 2) All households will receive a £400 discount on energy bills 3) Eight million of the lowest income families will also get a one-off payment of £650, Sunak says 4) He confirms a temporary windfall tax on oil and gas giants to fund the payments - a move called for by Labour Watch | UK: Rishi Sunak to unveil cost of living support package 5) There will be a one-off disability cost of living payment of £150, and pensioners will get £300 6) The UK government has also introduced a £5 billion ($6.3 billion) tax on the windfall profits of its oil and gas companies. 7) Sunak unveiled the new 25% tax on the profits of energy producers such as BP and Shell on Thursday. The levy will be phased out once oil and gas prices fall back to more normal levels, he said. 8) He said, “The oil and gas sector is making extraordinary profits, not as the result of recent changes, risk-taking or innovation or efficiency, but as the result of surging global commodity prices." (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 Finance Minister Rishi Sunak unveils $18 billion cost-of-living bailout package

Inflation is setting new records globally. Japan is feeling the pinch too, but its record inflation is just 2%. The country's central bank is looking for higher inflation. Why? Due to a long-standing financial policy. Palki Sharma brings you a ground report.

Gravitas: Japan's longstanding pursuit of higher inflation

In pics: Thousands of Sri Lankans queued for fuel and gas amid economic crisis

Inflation has hit a multi-decade high in all parts of the world. From Sri Lanka to Argentina, people have hit the streets to protest the rising cost of living. Could governments have prepared better for the rising inflation? Palki Sharma tells you.

Gravitas: Rising inflation sparks protests around the world

UK inflation rose to its highest level since last 40 years, adding to pressure for action from the government and central bank. Consumer prices surged 9% in the year through April, the fastest rate since March 1982.

UK inflation rate surges to a 40-year high of 9%

In India when it comes to price rise, the wholesale price index (WPI) in India has inched up to new heights in April. According to new data, WPI inflation has risen to 15.8 percent, an increase of 0.53 from March.

WPI inflation rise continues in India, marks double-digit for 13th straight month

Scores of protesters hit the streets on Friday in southern Iran city to protest against the sudden price rise of essential food items that saw a massive 300 per cent jump.

At least 22 agitators were arrested from two southern provinces of the city. State-run IRNA news agency reported that 15 people were arrested overnight in the southwestern city of Dezful in Khuzestan province and seven others from Yasuj city in Kohgiluyeh-Boyerahmad Province.

The report also said that 200 people had gathered in another city in Khuzestan province — Andimeshk — where one firefighter was injured after demonstrators threw stones at police and firefighters.

The arrests follow Iran's sudden announcement this week that the cost of cooking oil, chicken, eggs and milk would rise by as much as 300 per cent.

The prices rise was attributed to global supply chain snarls and Russia’s invasion of major food exporter Ukraine.

Though Iran produces half of its wheat requirements, it relies on Russia for other half. It also imports half of its cooking oil from Ukraine, where fighting has kept many farmers from the fields.

Apart from that, drought is already wreaking havoc on Iran's economy, which is already batted with Western sanctions over Iran's nuclear deal.

According to AP news agency, inflation has soared to 40 per cent— the highest level since 1994.

Around 30 per cent of Iranian households are below the poverty line, according to Iran's Statistics Center.

Smuggling of Iran’s highly subsidised bread into neighbouring Iraq and Afghanistan has also spiked as hunger spreads across the region.

Iranian President Ebrahim Raisi has promised to create jobs, lift sanctions and rescue the economy, but talks to revive Iran's tattered nuclear deal with world powers remain deadlocked.

(With inputs from agencies)

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Scores of protesters hit the streets on Friday in southern Iran city to protest against the sudden price rise of essential food items that saw a massive 300 per cent jump.

Scores of protesters hit the streets on Friday in southern Iran city to protest against the sudden price rise of essential food items that saw a massive 300 per cent jump. At least 22 agitators were arrested from two southern provinces of the city. State-run IRNA news agency reported that 15 people were arrested overnight in the southwestern city of Dezful in Khuzestan province and seven others from Yasuj city in Kohgiluyeh-Boyerahmad Province. The report also said that 200 people had gathered in another city in Khuzestan province — Andimeshk — where one firefighter was injured after demonstrators threw stones at police and firefighters. The arrests follow Iran's sudden announcement this week that the cost of cooking oil, chicken, eggs and milk would rise by as much as 300 per cent. The prices rise was attributed to global supply chain snarls and Russia’s invasion of major food exporter Ukraine. Though Iran produces half of its wheat requirements, it relies on Russia for other half. It also imports half of its cooking oil from Ukraine, where fighting has kept many farmers from the fields. Apart from that, drought is already wreaking havoc on Iran's economy, which is already batted with Western sanctions over Iran's nuclear deal. According to AP news agency, inflation has soared to 40 per cent— the highest level since 1994. Around 30 per cent of Iranian households are below the poverty line, according to Iran's Statistics Center. Smuggling of Iran’s highly subsidised bread into neighbouring Iraq and Afghanistan has also spiked as hunger spreads across the region. Iranian President Ebrahim Raisi has promised to create jobs, lift sanctions and rescue the economy, but talks to revive Iran's tattered nuclear deal with world powers remain deadlocked. (With inputs from agencies) WATCH WION LIVE HERE ×

300% rise in prices of staple foods sparks protest in Iran, 22 arrested

Thousands in Argentina protested against the country's soaring inflation bringing the capital to a standstill. As protesters demand better jobs and wages, Palki Sharma tells you what this means for the future of Latin America's third-largest economy.

Gravitas: Argentines bring capital to standstill

Amazon chief Jeff Bezos lashed at US President Joe Biden over the latter’s tweet about taxing the large corporations to bring down the inflation.

The strong retort from the billionaire came a day after Biden in his tweet suggested that the only way inflation could be tamed is by charging the large corporation.

“You want to bring down inflation? Let’s make sure the wealthiest corporations pay their fair share,” Biden tweeted on early Saturday morning.

To which Bezos in a sly remark suggested that the tweet could be considered disinformation.

“The newly created Disinformation Board should review this tweet, or maybe they need to form a new Non Sequitur Board instead," Bezos said, referring to Homeland Security's Disinformation Governance Board that was announced in April.

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The newly created Disinformation Board should review this tweet, or maybe they need to form a new Non Sequitur Board instead. Raising corp taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection. <a href="https://t.co/ye4XiNNc2v">https://t.co/ye4XiNNc2v</a>
— Jeff Bezos (@JeffBezos) <a href="https://twitter.com/JeffBezos/status/1525309091970699265?ref_src=twsrc%5Etfw">May 14, 2022</a></blockquote>
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"Raising corp taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection," Bezos continued.

One of the major promises of Biden’s 2023 budget plan has been to tax the ultra-wealthy and cash-rich corporations.

Amazon, the company founded by Bezos, has long been accused of not paying its fair share of taxes. The company paid no federal income taxes in 2017 and 2018, according to reports.

Bezos has reportedly paid nothing in federal income taxes in 2007 and 2011.

Also read |&nbsp;<a href="https://www.wionews.com/trending/defying-death-jeff-bezos-other-big-tech-founders-fund-startups-doing-anti-aging-research-446362">Defying death: Jeff Bezos, other big tech founders fund startups doing anti-aging researc</a>h

Before Bezos, it was Tesla chief Elon Musk who had opposed Biden’s proposal to tax the top one-hundredth of one per cent (0.01 per cent) of American households worth over $100 million.

Also read |&nbsp;<a href="https://www.wionews.com/world/jeff-bezos-loses-billions-as-amazon-shares-slump-wall-street-tumbles-475071">Jeff Bezos loses billions as Amazon shares slump; Wall Street tumbles</a>

The White House estimates that the proposed tax would increase the revenue by $360 billion over ten years.

(With inputs from agencies)

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Amazon chief Jeff Bezos lashed at US President Joe Biden over the latter’s tweet about taxing the large corporations to bring down the inflation. The strong retort from the billionaire came a day after Biden in his tweet suggested that the only way inflation could be tamed is by charging the large corporation.

Amazon chief Jeff Bezos lashed at US President Joe Biden over the latter’s tweet about taxing the large corporations to bring down the inflation. The strong retort from the billionaire came a day after Biden in his tweet suggested that the only way inflation could be tamed is by charging the large corporation. “You want to bring down inflation? Let’s make sure the wealthiest corporations pay their fair share,” Biden tweeted on early Saturday morning. To which Bezos in a sly remark suggested that the tweet could be considered disinformation. “The newly created Disinformation Board should review this tweet, or maybe they need to form a new Non Sequitur Board instead," Bezos said, referring to Homeland Security's Disinformation Governance Board that was announced in April. The newly created Disinformation Board should review this tweet, or maybe they need to form a new Non Sequitur Board instead. Raising corp taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection. https://t.co/ye4XiNNc2v — Jeff Bezos (@JeffBezos) May 14, 2022 × "Raising corp taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection," Bezos continued. One of the major promises of Biden’s 2023 budget plan has been to tax the ultra-wealthy and cash-rich corporations. Amazon, the company founded by Bezos, has long been accused of not paying its fair share of taxes. The company paid no federal income taxes in 2017 and 2018, according to reports. Bezos has reportedly paid nothing in federal income taxes in 2007 and 2011. Also read | Defying death: Jeff Bezos, other big tech founders fund startups doing anti-aging research Before Bezos, it was Tesla chief Elon Musk who had opposed Biden’s proposal to tax the top one-hundredth of one per cent (0.01 per cent) of American households worth over $100 million. Also read | Jeff Bezos loses billions as Amazon shares slump; Wall Street tumbles The White House estimates that the proposed tax would increase the revenue by $360 billion over ten years. (With inputs from agencies) WATCH WION LIVE HERE ×

Amazon's Bezos slams US Prez Biden over his tweet on taxing rich corps to tame inflation

Rising food and energy prices pushed India's annual retail inflation up towards an eight-year high in April, strengthening economists' view that the central bank would have to raise interest rates more aggressively to curb prices.

Rising food and energy prices pushes India's annual retail inflation up

The US consumer price index accelerated 8.3% in April, more than the 8.1% estimate and near the highest level in more than 40 years.

US inflation edges down in April as compared to March, stays elevated at 8.3%

The Russia-Ukraine conflict has made life costlier for Turkish citizens. Turkey has registered 70% inflation in the month of April. 89.1% jump in food and non-alcoholic drinks prices were reported and house prices registered a 7.43 increase.

Turkey's inflation surges to 20-year high, 105.9% jump in transportation sector costs

Turks bear the brunt of rising cost of living, inflation stands at 70%

McColl's a British store chain with a network of more than 1,100 convenience stores and newsagents across the United Kingdom has gone bust in face of rising inflation. This has put 16000 jobs at risk.

The company is entering administration, a process in which a failing company seeks outside assistance in order to avoid job losses.

According to Reuters, the convenience store chain's lenders have declined to provide additional cash. Last-ditch talks with supermarket behemoth Morrisons, according to reports, have also failed.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/us-fed-makes-biggest-rate-increase-since-2000-to-fight-inflation-476460" hreflang="en">US Fed makes biggest rate increase since 2000 to fight inflation</a>

"In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably... left with no choice other than to place the company in administration," said McColl's in its statement.

For the process, PricewaterhouseCoopers (PwC) has been appointed as administrators. The collapsing company said that it expects PwC to make a sale of the business to a third-party purchaser "as soon as possible".

In a trading update last month, McColl's said it was impacted by reduced customer spending and continued supply chain disruption throughout the industry.

Watch | Bank Of England hikes interest rates to 13-year high

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The London Stock Exchange (LSE) has also suspended the group's shares, whose price gained 20 per cent on Friday amid hopes of a rescue deal.

Britain is facing a cost-of-living crisis as inflation reaches 7 per cent, the highest in thirty years.

As per a warning by the Bank of England, by the end of this year, because of rising energy prices, UK's inflation is expected to reach 10 per cent, a four-decade high.

Also read |&nbsp;<a href="https://www.wionews.com/world/random-guy-named-ma-gets-detained-alibaba-loses-usd-26-billion-476568" hreflang="en">Random guy named Ma gets detained, Alibaba loses USD 26 billion</a>

The bank also warned that Britain could enter a recession, as the central bank raised its main interest rate by a quarter-point to one per cent, the highest since the 2009 global financial crisis.

Globally consumer prices have been surging as economies that have already been struggling after pandemic lockdowns, face costs aggravated by the ongoing Russia-Ukraine war.

(With inputs from agencies)

McColl's a British store chain with a network of more than 1,100 convenience stores and newsagents across the United Kingdom has gone bust in face of rising inflation.

McColl's a British store chain with a network of more than 1,100 convenience stores and newsagents across the United Kingdom has gone bust in face of rising inflation. This has put 16000 jobs at risk. The company is entering administration, a process in which a failing company seeks outside assistance in order to avoid job losses. According to Reuters, the convenience store chain's lenders have declined to provide additional cash. Last-ditch talks with supermarket behemoth Morrisons, according to reports, have also failed. Also read | US Fed makes biggest rate increase since 2000 to fight inflation "In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably... left with no choice other than to place the company in administration," said McColl's in its statement. For the process, PricewaterhouseCoopers (PwC) has been appointed as administrators. The collapsing company said that it expects PwC to make a sale of the business to a third-party purchaser "as soon as possible". In a trading update last month, McColl's said it was impacted by reduced customer spending and continued supply chain disruption throughout the industry. Watch | Bank Of England hikes interest rates to 13-year high The London Stock Exchange (LSE) has also suspended the group's shares, whose price gained 20 per cent on Friday amid hopes of a rescue deal. Britain is facing a cost-of-living crisis as inflation reaches 7 per cent, the highest in thirty years. As per a warning by the Bank of England, by the end of this year, because of rising energy prices, UK's inflation is expected to reach 10 per cent, a four-decade high. Also read | Random guy named Ma gets detained, Alibaba loses USD 26 billion The bank also warned that Britain could enter a recession, as the central bank raised its main interest rate by a quarter-point to one per cent, the highest since the 2009 global financial crisis. Globally consumer prices have been surging as economies that have already been struggling after pandemic lockdowns, face costs aggravated by the ongoing Russia-Ukraine war. (With inputs from agencies)

UK's convenience store chain McColl's goes bust due to inflation; 1,100 stores and 16,000 jobs at risk

Turkey's annual inflation has jumped to nearly 70% in April, fuelled by the Russia-Ukraine conflict and rising commodity prices after a Lira crash late last year.

Turkey's inflation surges to 20-year high

The Federal Reserve on Wednesday announced its&nbsp;biggest&nbsp;rate&nbsp;hike&nbsp;since&nbsp;2000, with a half percentage point&nbsp;increase&nbsp;as it works to crush soaring US&nbsp;inflation.

With&nbsp;inflation&nbsp;at the highest&nbsp;rate&nbsp;in four decades, Federal Reserve Chair Jerome Powell sent a message directly to the American people, expressing concern for the pain caused by rising prices, and pledging to use all available tools to bring them down.

But he told reporters he remains confident the economy is strong enough to withstand&nbsp;rate&nbsp;increases without tipping into a recession.

Also read |&nbsp;<a href="https://www.wionews.com/photos/from-recession-to-inflation-how-the-us-fed-has-dealt-with-crises-475472">From recession to inflation, how the US Fed has dealt with crisis</a>

After a quarter-point hike in March, the US&nbsp;central bank's policy-setting Federal Open Market Committee (FOMC) pushed the benchmark interest&nbsp;rate&nbsp;above 0.75 per cent as it works to cool the economy, and confirmed more increases "will be appropriate."

The hike will raise the costs of all types of borrowing, from mortgages to credit cards to car loans, cooling demand and business activity.

Inflation&nbsp;has become an overriding concern after the world's largest economy saw annual consumer prices surge 8.5 per cent over the 12 months to March,&nbsp;the&nbsp;biggest&nbsp;jump&nbsp;since&nbsp;December 1981.

Policymakers continue to believe&nbsp;inflation&nbsp;will gradually return to the&nbsp;Fed's two-percent target as it raises borrowing costs, but in a statement following the conclusion of its two-day meeting, the FOMC said it will be "highly attentive to&nbsp;inflation&nbsp;risks."

In an unusual move, Powell opened his news conference speaking to the American people.

"Inflation&nbsp;is much too high. And we understand the hardship that is causing," he said, promising to use all tools available to bring it down "expeditiously."

Watch |&nbsp;US Fed lifts policy rate by 0.25%

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He acknowledged that higher interest rates also bring their share of pain, but "everyone would be better off if we can get this job done. The sooner, the better."

To achieve that aim, he said "additional 50-basis point increases should be on the table at the next couple of meetings," however, a more aggressive three-quarter point hike is not under consideration.

The&nbsp;Fed's goal is to engineer a "soft landing," reining in&nbsp;inflation&nbsp;while avoiding a contraction in economic activity, and Powell said that outcome is likely.

"It's a strong economy, and nothing about it suggested... that it's close to or vulnerable to a recession," he said.

Ukraine war impact

But with China's pandemic lockdowns worsening global supply snarls and the war in Ukraine pushing commodity prices higher, analysts fear factors beyond the&nbsp;central bank's control could undermine that goal, and perhaps plunge the US economy into a recession.

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The FOMC acknowledged the "highly uncertain" impact of Russia's invasion of Ukraine and Western sanctions on Moscow, which are "creating additional upward pressure on&nbsp;inflation&nbsp;and are likely to weigh on economic activity."&nbsp;

In addition, Covid lockdowns in China "are likely to exacerbate supply chain disruptions," the statement said.&nbsp;

Offloading bonds

Though it contracted in the first quarter, Powell said the economy was healthy enough to withstand higher rates, and pointed to robust job gains and strong household and business spending.

However, central bankers cannot engineer a solution for the worker shortages that have challenged businesses and raised fears of a wage-price spiral, when employees demand higher salaries and fuel price increases.&nbsp;

Powell downplayed those concerns, saying some of the&nbsp;inflation&nbsp;is due to price shocks, while&nbsp;Fed&nbsp;policy can help address the "imbalance" in the labor market.

On Wednesday, payroll services firm ADP reported private employers added a weaker-than-expected 247,000 workers in April, a sign that companies are struggling to find available labor, while government data released Tuesday showed there are nearly two openings for every job seeker.

Also read |&nbsp;<a href="https://www.wionews.com/economy/us-fed-officials-firm-up-plans-for-a-swift-pullback-of-economic-help-455510">US Fed officials firm up plans for a swift pullback of economic help</a>

The FOMC also said it would begin reducing its massive bond holdings starting June 1, beginning at the pace of $47.5 billion a month, and then doubling after three months, also aimed at removing stimulus from the economy.

The decision was widely expected, and many economists believe the FOMC will again hike rates by a half-point in June, though Ian Shepherdson of Pantheon Economics said, "After that we think all bets are off, given the likelihood of a steep, sustained drop in&nbsp;inflation, a clear softening in manufacturing, and a meltdown in housing market activity."

Stock markets cheered the&nbsp;Fed&nbsp;move, closing sharply higher, with big gains in interest-sensitive tech shares.

The Federal Reserve on Wednesday announced its biggest rate hike since 2000, with a half percentage point increase as it works to crush soaring US inflation. With inflation at the highest rate in four decades, Federal Reserve Chair Jerome Powell sent a message directly to the American people, expressing concern for the pain caused by rising prices, and pledging to use all available tools to bring them down.

The Federal Reserve on Wednesday announced its biggest rate hike since 2000, with a half percentage point increase as it works to crush soaring US inflation. With inflation at the highest rate in four decades, Federal Reserve Chair Jerome Powell sent a message directly to the American people, expressing concern for the pain caused by rising prices, and pledging to use all available tools to bring them down. But he told reporters he remains confident the economy is strong enough to withstand rate increases without tipping into a recession. Also read | From recession to inflation, how the US Fed has dealt with crisis After a quarter-point hike in March, the US central bank's policy-setting Federal Open Market Committee (FOMC) pushed the benchmark interest rate above 0.75 per cent as it works to cool the economy, and confirmed more increases "will be appropriate." The hike will raise the costs of all types of borrowing, from mortgages to credit cards to car loans, cooling demand and business activity. Inflation has become an overriding concern after the world's largest economy saw annual consumer prices surge 8.5 per cent over the 12 months to March, the biggest jump since December 1981. Policymakers continue to believe inflation will gradually return to the Fed's two-percent target as it raises borrowing costs, but in a statement following the conclusion of its two-day meeting, the FOMC said it will be "highly attentive to inflation risks." In an unusual move, Powell opened his news conference speaking to the American people. "Inflation is much too high. And we understand the hardship that is causing," he said, promising to use all tools available to bring it down "expeditiously." Watch | US Fed lifts policy rate by 0.25% He acknowledged that higher interest rates also bring their share of pain, but "everyone would be better off if we can get this job done. The sooner, the better." To achieve that aim, he said "additional 50-basis point increases should be on the table at the next couple of meetings," however, a more aggressive three-quarter point hike is not under consideration. The Fed's goal is to engineer a "soft landing," reining in inflation while avoiding a contraction in economic activity, and Powell said that outcome is likely. "It's a strong economy, and nothing about it suggested... that it's close to or vulnerable to a recession," he said. Ukraine war impact But with China's pandemic lockdowns worsening global supply snarls and the war in Ukraine pushing commodity prices higher, analysts fear factors beyond the central bank's control could undermine that goal, and perhaps plunge the US economy into a recession. WATCH WION LIVE HERE: The FOMC acknowledged the "highly uncertain" impact of Russia's invasion of Ukraine and Western sanctions on Moscow, which are "creating additional upward pressure on inflation and are likely to weigh on economic activity." In addition, Covid lockdowns in China "are likely to exacerbate supply chain disruptions," the statement said. Offloading bonds Though it contracted in the first quarter, Powell said the economy was healthy enough to withstand higher rates, and pointed to robust job gains and strong household and business spending. However, central bankers cannot engineer a solution for the worker shortages that have challenged businesses and raised fears of a wage-price spiral, when employees demand higher salaries and fuel price increases. Powell downplayed those concerns, saying some of the inflation is due to price shocks, while Fed policy can help address the "imbalance" in the labor market. On Wednesday, payroll services firm ADP reported private employers added a weaker-than-expected 247,000 workers in April, a sign that companies are struggling to find available labor, while government data released Tuesday showed there are nearly two openings for every job seeker. Also read | US Fed officials firm up plans for a swift pullback of economic help The FOMC also said it would begin reducing its massive bond holdings starting June 1, beginning at the pace of $47.5 billion a month, and then doubling after three months, also aimed at removing stimulus from the economy. The decision was widely expected, and many economists believe the FOMC will again hike rates by a half-point in June, though Ian Shepherdson of Pantheon Economics said, "After that we think all bets are off, given the likelihood of a steep, sustained drop in inflation, a clear softening in manufacturing, and a meltdown in housing market activity." Stock markets cheered the Fed move, closing sharply higher, with big gains in interest-sensitive tech shares.

US Fed makes biggest rate increase since 2000 to fight inflation

A number of global equity markets edged higher on Tuesday while 10-year US Treasury yields slid from the 3% level as investors remained cautious, expecting the Federal Reserve to hike rates to curb inflation.

US treasury yields slip from 3% level for first time since 2018

The ongoing Russia-Ukraine war has drastically impacted Europe's energy supply after Russia's Gazprom stopped exporting natural gas to Poland and Bulgaria. Inflation is at a record high of 7.5 % in 19 Euro countries

Russia-Ukraine conflict: Euro zone inflation rises to 7.5%

The cost of living in the UK has gone up owing to the hike in fuel and food prices. According to research conducted by the office for national statistics, nine out of ten citizens have faced an uptick in their cost of living.

United Kingdom: Inflation hits UK economy, energy and food prices rise

Sri Lanka is witnessing its worst financial crisis since its Independence way back in 1948. In the latest, the Sri Lankan cabinet has approved the proposal for the 21st constitutional amendment which will be based on the positive features from the previous two.

Inflation hits record levels in Sri Lanka, call for Gotabaya brothers resignation grows louder

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