A measure of Australian consumer sentiment fell for a third month in February as higher living costs from petrol to rent undermined finances and overshadowed an easing in coronavirus cases.

Australian consumer sentiment slips in February, higher living costs dent confidence

Anxiety rose after an assistant doctor died last fall when she plowed her car into the back of a truck after a long shift.

Then there were the growing cases of violence. An assistant doctor abandoned his career after a patient stabbed him in the stomach and hand. A pregnant nurse was hospitalised after being kicked in the belly.

The worsening economy and soaring inflation, which has reduced some doctors’ salaries close to the level of the minimum wage, has brought many to a tipping point, driving them in growing numbers to search for better opportunities abroad.

Their departures are a sad indictment of President Recep Tayyip Erdogan, who burnished his own reputation by expanding universal health care over his 18 years in power. It was one of his signature achievements. For many of his supporters, that action alone remains their main reason to support him.

But the strains of those overhauls wrought by Erdogan, in addition to those brought by the pandemic — and now galloping inflation — have undermined the very professionals on whom the health system depends.

Doctors complain of a grinding workload, diminishing returns for their work, a drastic loss of respect for the profession under Erdogan, and an increase in physical violence from their own patients.

More than 1,400 Turkish doctors left their posts to work abroad last year, and 4,000 over the past decade, according to the Turkish Medical Association, the largest association of medical professionals in the country. Many more are preparing applications and have requested certificates of good standing from the organisation, officials said.

“This is a result of long-accumulating issues,” said Bulent Kilic, a professor of public health at Dokuz Eylul University in the western city of Izmir. “In the last 20 years, there have been serious changes in the name of reform, and I think the heavy workload in the pandemic was the final straw.”

<a href="https://www.wionews.com/world/dumping-plastic-in-waterways-is-criminal-claims-pope-francis-451322">Also read |&nbsp;Dumping plastic in waterways is 'criminal', claims Pope Francis</a>

For a long time, the changes that Erdogan introduced bore fruit. Turkey has long prided itself on the quality of its medical schools and its medical professionals, and in recent years, it has developed a thriving private health industry catering to thousands of international as well as Turkish patients. Fifteen new large city hospitals were built to expand the health service while access was broadened for the public.

The health minister recently praised the president’s foresight, saying the system held up well during the worst days of the pandemic and facilities were never overwhelmed.

But the system is no doubt stressed, leaving doctors feeling overburdened and underpaid. The steady erosion of their income and status has been too much for many doctors to bear.

“Three years ago, I would have said the salary was fair, but now it is not,” said Dr. Furkan Cagri Koral, 26, a junior doctor who left Turkey only two years after graduating. “Doctors in Turkey are working at the level of slave labor considering the workload and the risks they are taking.”

He went to Germany, where, after 11 months of language training, he found a job as an assistant doctor in the town of Chemnitz and is preparing to take an equivalency exam that will allow him to practice. Koral said he was already encouraging colleagues and his sister, a medical student, to follow suit.

“It is not only low salaries” driving health professionals away, said Dr. Sebnem Korur Fincanci, the chairwoman of the Turkish Medical Association. “It is the devaluation of the profession, over many years, since the beginning of the rule of the AKP,” she said, referring to Erdogan’s Justice and Development Party.

The opening up of access to all hospitals on demand, without a referral system, overloaded them, while hospitals were encouraged to raise patient numbers and financial returns. At the same time, Fincanci said, Erdogan embraced a policy of privatisation of health care and a performance pay system that has led to a focus on quantity rather than quality.

“There were too many appointments, too many operations, some not necessary,” she said. Patients were happy at first, but the open-access system was not sustainable. Hospitals began raising their prices and shortening appointments. A centralized system allows only 10 minutes for appointments, and in some cases only 5 minutes, which creates tensions all around.

Violence against medical professionals has risen sharply in the past two years — mostly in emergency departments — often in an explosion of anger at the system. More than 13,000 health professionals lodged complaints that they had been subjected to violence at work in 2020, according to the Turkish Medical Association.

“People are not tolerant enough,” Fincanci said.

“Since they are unhappy in their workplace and houses, and values are deteriorating, violence becomes a problem,” she added.

Other issues, including gender discrimination, nepotism and cronyism in management and an increase in lawsuits against medical practitioners, have made doctors lose hope, she said.

“They do not think the situation will change,” Fincanci said. “It is not only the health system, but the general environment.”

There are ways to remedy the health system, Kilic, of Dokuz Eylul University, said, including raising budgetary expenditure on health and increasing the proportion of spending on preventive care. Turks also need to be weaned off their high level of visits to hospitals and use of tests, he added.

But retaining doctors and other medical personnel is equally vital, he said, because Turkey has a far lower level of trained professionals in proportion to its population than most European countries.

Erdogan and Dr. Fahrettin Koca, Turkey’s health minister, have both acknowledged the problem of Turkey’s brain drain but have offered little practical respite. “Don’t forget, our physicians are the best-trained physicians, and the richest countries have their eyes on them,” Koca told Parliament in a speech in December.

Parliament recently raised the penalties for violence committed against health workers, and Koca appealed to the assembly in December to consider salaries and other rights of health sector workers.

For Dr. Dogan Can Celik, 29, who works at a public hospital in Istanbul, it is not enough. He is planning to leave for Britain as soon as he completes his residency in about six months.

<a href="https://www.wionews.com/world/ex-ukraine-defence-chief-says-russia-could-seize-any-city-in-ukraine-but-will-it-plan-full-scale-invasion-451199">Also read |&nbsp;Ex-Ukraine defence chief says Russia could seize any city in Ukraine. But will it plan full-scale invasion?</a>

“I love my country, and especially Istanbul, but in the last four years, it really changed,” he said. He said the working hours and poor remuneration were his main reasons for leaving. “When I see our professors and mentors, I think I don’t want to be in their situation because after 40 years as a professor, they get really low salaries.”

Unlike previous waves of Turkish workers heading to Europe, those emigrating these days have little intention of returning and are leaving to give their children better opportunities, according to several people working in the business of relocating doctors.

Ekin Ay set up a business teaching medical German to Turkish doctors five years ago and has seen demand double in the past two years. One-fifth of her students are over 40, and some are over 50, she said. “They are not leaving for economic reasons but because of their families,” she said.

Dr. Cemal Altuntas moved to Germany three years ago and plans to start working full time as a consultant for relocating doctors. He said there had been a huge increase in requests from doctors in the past six months.

“It’s not a luxurious life that we want,” he said. “We want the normal life that we deserve.”

Anxiety rose after an assistant doctor died last fall when she plowed her car into the back of a truck after a long shift. Then there were the growing cases of violence.

Anxiety rose after an assistant doctor died last fall when she plowed her car into the back of a truck after a long shift. Then there were the growing cases of violence. An assistant doctor abandoned his career after a patient stabbed him in the stomach and hand. A pregnant nurse was hospitalised after being kicked in the belly. The worsening economy and soaring inflation, which has reduced some doctors’ salaries close to the level of the minimum wage, has brought many to a tipping point, driving them in growing numbers to search for better opportunities abroad. Their departures are a sad indictment of President Recep Tayyip Erdogan, who burnished his own reputation by expanding universal health care over his 18 years in power. It was one of his signature achievements. For many of his supporters, that action alone remains their main reason to support him. But the strains of those overhauls wrought by Erdogan, in addition to those brought by the pandemic — and now galloping inflation — have undermined the very professionals on whom the health system depends. Doctors complain of a grinding workload, diminishing returns for their work, a drastic loss of respect for the profession under Erdogan, and an increase in physical violence from their own patients. More than 1,400 Turkish doctors left their posts to work abroad last year, and 4,000 over the past decade, according to the Turkish Medical Association, the largest association of medical professionals in the country. Many more are preparing applications and have requested certificates of good standing from the organisation, officials said. “This is a result of long-accumulating issues,” said Bulent Kilic, a professor of public health at Dokuz Eylul University in the western city of Izmir. “In the last 20 years, there have been serious changes in the name of reform, and I think the heavy workload in the pandemic was the final straw.” Also read | Dumping plastic in waterways is 'criminal', claims Pope Francis For a long time, the changes that Erdogan introduced bore fruit. Turkey has long prided itself on the quality of its medical schools and its medical professionals, and in recent years, it has developed a thriving private health industry catering to thousands of international as well as Turkish patients. Fifteen new large city hospitals were built to expand the health service while access was broadened for the public. The health minister recently praised the president’s foresight, saying the system held up well during the worst days of the pandemic and facilities were never overwhelmed. But the system is no doubt stressed, leaving doctors feeling overburdened and underpaid. The steady erosion of their income and status has been too much for many doctors to bear. “Three years ago, I would have said the salary was fair, but now it is not,” said Dr. Furkan Cagri Koral, 26, a junior doctor who left Turkey only two years after graduating. “Doctors in Turkey are working at the level of slave labor considering the workload and the risks they are taking.” He went to Germany, where, after 11 months of language training, he found a job as an assistant doctor in the town of Chemnitz and is preparing to take an equivalency exam that will allow him to practice. Koral said he was already encouraging colleagues and his sister, a medical student, to follow suit. “It is not only low salaries” driving health professionals away, said Dr. Sebnem Korur Fincanci, the chairwoman of the Turkish Medical Association. “It is the devaluation of the profession, over many years, since the beginning of the rule of the AKP,” she said, referring to Erdogan’s Justice and Development Party. The opening up of access to all hospitals on demand, without a referral system, overloaded them, while hospitals were encouraged to raise patient numbers and financial returns. At the same time, Fincanci said, Erdogan embraced a policy of privatisation of health care and a performance pay system that has led to a focus on quantity rather than quality. “There were too many appointments, too many operations, some not necessary,” she said. Patients were happy at first, but the open-access system was not sustainable. Hospitals began raising their prices and shortening appointments. A centralized system allows only 10 minutes for appointments, and in some cases only 5 minutes, which creates tensions all around. Violence against medical professionals has risen sharply in the past two years — mostly in emergency departments — often in an explosion of anger at the system. More than 13,000 health professionals lodged complaints that they had been subjected to violence at work in 2020, according to the Turkish Medical Association. “People are not tolerant enough,” Fincanci said. “Since they are unhappy in their workplace and houses, and values are deteriorating, violence becomes a problem,” she added. Other issues, including gender discrimination, nepotism and cronyism in management and an increase in lawsuits against medical practitioners, have made doctors lose hope, she said. “They do not think the situation will change,” Fincanci said. “It is not only the health system, but the general environment.” There are ways to remedy the health system, Kilic, of Dokuz Eylul University, said, including raising budgetary expenditure on health and increasing the proportion of spending on preventive care. Turks also need to be weaned off their high level of visits to hospitals and use of tests, he added. But retaining doctors and other medical personnel is equally vital, he said, because Turkey has a far lower level of trained professionals in proportion to its population than most European countries. Erdogan and Dr. Fahrettin Koca, Turkey’s health minister, have both acknowledged the problem of Turkey’s brain drain but have offered little practical respite. “Don’t forget, our physicians are the best-trained physicians, and the richest countries have their eyes on them,” Koca told Parliament in a speech in December. Parliament recently raised the penalties for violence committed against health workers, and Koca appealed to the assembly in December to consider salaries and other rights of health sector workers. For Dr. Dogan Can Celik, 29, who works at a public hospital in Istanbul, it is not enough. He is planning to leave for Britain as soon as he completes his residency in about six months. Also read | Ex-Ukraine defence chief says Russia could seize any city in Ukraine. But will it plan full-scale invasion? “I love my country, and especially Istanbul, but in the last four years, it really changed,” he said. He said the working hours and poor remuneration were his main reasons for leaving. “When I see our professors and mentors, I think I don’t want to be in their situation because after 40 years as a professor, they get really low salaries.” Unlike previous waves of Turkish workers heading to Europe, those emigrating these days have little intention of returning and are leaving to give their children better opportunities, according to several people working in the business of relocating doctors. Ekin Ay set up a business teaching medical German to Turkish doctors five years ago and has seen demand double in the past two years. One-fifth of her students are over 40, and some are over 50, she said. “They are not leaving for economic reasons but because of their families,” she said. Dr. Cemal Altuntas moved to Germany three years ago and plans to start working full time as a consultant for relocating doctors. He said there had been a huge increase in requests from doctors in the past six months. “It’s not a luxurious life that we want,” he said. “We want the normal life that we deserve.”

Turkey’s doctors are leaving, the latest casualty of spiralling inflation

A convoy of hundreds of pink-clad delivery bikers rode through Istanbul's pouring rain to protest at their employer's headquarters for higher pay, after Turkey's annual inflation leapt to a 20-year high near 50%.

Istanbul: Pink couriers strike for higher pay as Turkey's inflation surges

Starbucks will raise menu prices this year and reduce some spending to offset soaring costs for labor and goods, as rising COVID-19 cases prompted the coffee chain to lower estimates for profits this year.

Starbucks to hike prices to offset inflation

Sri Lanka’s inflation rate surged past Pakistan to make it the fastest in Asia, stoked by failed harvests, import restrictions to conserve dwindling foreign-exchange reserves, and high global prices of key commodities.

Sri Lanka's inflation rate surpasses Pakistan

Turkish President Recep Tayyip Erdogan sacked country's chief statistician after records and calculations revealed that tyhe country experienced record inflation rate last year. The inflation hit a 19-year high of 36.1 per cent.

The decree sacking head of state statistics agency was published on Saturday.

Sait Erdal Dincer was just the latest in a series of economic dismissals by Erdogan, who has sacked three central bank governors since July 2019.

Erdogan has railed against high interest rates, which he believes cause inflation -- the exact opposition of conventional economic thinking.

Also Read | <a href="https://www.wionews.com/world/erdogan-warns-media-of-action-over-harmful-content-448731">Erdogan warns media of action over 'harmful' content</a>

The 2021 inflation figure released by Dincer angered both the pro-government and opposition camps. 
The opposition said it was underreported, claiming that the real cost of living increases were at least twice as high.

Erdogan meanwhile reportedly criticised the statistics agency in private for publishing data that he felt overstated the scale of Turkey's economic malaise.

Dincer seemed to sense his impending fate.

"I sit in this office now, tomorrow it will be someone else," he said in an interview with the business newspaper Dunya earlier this month.&nbsp;

"Never mind who is the chairman. Can you imagine that hundreds of my colleagues could stomach or remain quiet about publishing an inflation rate very different from what they had established?"&nbsp;

"I have a responsibility to 84 million people," he added.&nbsp;

Erdogan did not explain his decision to appoint Erhan Cetinkaya, who had served as vice-chair of Turkey's banking regulator, as the new state statistics chief.

"This will just increase concern about the reliability of the data, in addition to major concerns about economic policy settings," Timothy Ash of BlueBay Asset Management said in a note to clients.&nbsp;

The agency is due to publish January's inflation data on February 3.

(With inputs from agencies)

Turkish President Recep Tayyip Erdogan sacked country's chief statistician after records and calculations revealed that tyhe country experienced record inflation rate last year.

Turkish President Recep Tayyip Erdogan sacked country's chief statistician after records and calculations revealed that tyhe country experienced record inflation rate last year. The inflation hit a 19-year high of 36.1 per cent. The decree sacking head of state statistics agency was published on Saturday. Sait Erdal Dincer was just the latest in a series of economic dismissals by Erdogan, who has sacked three central bank governors since July 2019. Erdogan has railed against high interest rates, which he believes cause inflation -- the exact opposition of conventional economic thinking. Also Read | Erdogan warns media of action over 'harmful' content The 2021 inflation figure released by Dincer angered both the pro-government and opposition camps. The opposition said it was underreported, claiming that the real cost of living increases were at least twice as high. Erdogan meanwhile reportedly criticised the statistics agency in private for publishing data that he felt overstated the scale of Turkey's economic malaise. Dincer seemed to sense his impending fate. "I sit in this office now, tomorrow it will be someone else," he said in an interview with the business newspaper Dunya earlier this month. "Never mind who is the chairman. Can you imagine that hundreds of my colleagues could stomach or remain quiet about publishing an inflation rate very different from what they had established?" "I have a responsibility to 84 million people," he added. Erdogan did not explain his decision to appoint Erhan Cetinkaya, who had served as vice-chair of Turkey's banking regulator, as the new state statistics chief. "This will just increase concern about the reliability of the data, in addition to major concerns about economic policy settings," Timothy Ash of BlueBay Asset Management said in a note to clients. The agency is due to publish January's inflation data on February 3. (With inputs from agencies)

Turkey: Calculations reveal record inflation, Erdogan sacks statistician

Inflation came in strong and wage growth remained elevated at the end of 2021, setting the stage for a challenging economic year in which the Federal Reserve and White House will try to maintain momentum in the job market while wrestling price gains under control.

The personal consumption expenditures index, the Fed’s preferred inflation gauge, came in at 5.8% in December, up from 5.7% the prior month. That beat out the prior month to become the fastest pace since 1982.

Inflation is moderating somewhat on a monthly basis, but its still-high annual readings come at a moment when pay is picking up briskly. While robust wage growth is good news for workers, it also increases the risk of sustained high inflation: Companies may raise prices to try to cover rising labour costs.

The Employment Cost Index, a measure of pay and benefits the Fed watches closely, picked up 1% in the final quarter of 2021 from the prior year. While that was less of a gain than the 1.2% economists in a Bloomberg survey had forecast, it capped a robust year of increases: The gauge climbed 4% in the year through the fourth quarter, with its wages and salaries measure picking up 4.5%.

That marked the fastest pace of increase for both the overall compensation and the wages and salaries measure since the data series started two decades ago.

“Overall wage growth, on a nominal basis, is still pretty strong,” said Omair Sharif, founder of Inflation Insights — referring to the data before they are adjusted for inflation. “The downside is that inflation is eating away at all of these nominal gains.”

Price gains are also chipping away at consumer confidence, making inflation a political liability for the Biden administration and Democrats during a midterm election year. While the White House has taken steps aimed at relieving pressure on choked supply chains, the job of slowing down demand to bring prices under control rests primarily with the Fed.

The Fed’s policymakers have signalled that they will likely begin to raise interest rates at their March meeting as they try to prevent today’s quick price increases from becoming a more permanent feature of the economic landscape. Markets are nervously eyeing the Fed’s next steps, trying to gauge how much it will raise rates and how rapidly. Higher borrowing costs could slow down economic growth and lower stock prices, taking some of the buoyancy out of the U.S. expansion.

Economists do expect inflation to fade this year, though tangled supply chains make it difficult to gauge when that will happen. The world’s trade system remains under pronounced stress, based on various measures — including one produced by the Federal Reserve Bank of New York that incorporates backlogs, delivery times and inventories.

Inflation sped up starting last year as people bought more goods, aided by repeated government relief checks and other federal benefits. The world’s factories and shipping lines have struggled to keep up with demand, resulting in rising prices for cars, lumber and clothing. While spending has moderated somewhat recently — it fell in December as omicron spread, as goods consumption declined — it is unclear whether that is a blip caused by the pandemic or a lasting pullback.

Fed officials have been watching for signs that inflation, which they have projected will ease to less than 3% by the end of the year, might instead linger.

“We are attentive to the risks that persistent real wage growth in excess of productivity could put upward pressure on inflation,” Jerome Powell, the Fed’s chair, said during a news conference Wednesday. Friday’s data could offer officials some slight reprieve.

Powell had in December specifically cited the previously Employment Cost Index reading — which came in high during the third quarter — as one reason that the Fed had decided to shift from stoking growth to preparing to fight back if inflation becomes long-lasting.

The fact that the measure did not pick up as sharply as expected in the final quarter of the year could give investors some confidence that the central bank’s policy-setting group, the Federal Open Market Committee, will not further speed up its plans to withdraw economic help.

“With labor participation creeping higher, and measures of excess demand flattening in recent months, it is reasonable to think that wage growth is unlikely to reaccelerate dramatically,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote following the release. “In the meantime, this report eases the immediate pressure on the FOMC to act aggressively.”

As inflation uncertainty lingers and another wave of virus prevents a return to normal life, several measures of consumer confidence have shown that people are becoming less optimistic. The University of Michigan survey has shown sentiment faltering as prices have risen, and The Conference Board’s index ticked down in January.

“You have very high inflation, so people are seeing an erosion of their purchasing power,” said Dana M. Peterson, chief economist at The Conference Board, noting that the resurgent virus is also to blame. “People will have higher confidence once we’re beyond omicron.”

For now, it is a moment of pronounced economic uncertainty.

Ashley Fahr, owner of the culinary company and event space La Cuisine in Venice, California, said rising grocery costs began to bite at a difficult moment — just before omicron began to surge, causing people to pull back from activities like the cooking classes and catering events she offers.

She noticed in December that her food bill had gone up by about 15%, chipping away at her margins, and she passed about 5% of that on to customers while absorbing the rest of the increase.

“I didn’t want to quote a number people would balk at,” she said.

Fahr said she pays her workers — most of whom are independent contractors — competitive wages and that it is hard to keep up with rising prices and still turn a profit. She is watching to see what other local caterers and cooking classes do with their pricing — and whether they begin to pass on the full increase to customers.

“If everyone else does it, I’ll do it too,” Fahr said.

That sort of logic is what economic officials worry about. If businesses and consumers begin to expect prices to steadily rise, they may begin to accept instead of resisting them — and when inflation gets baked into expectations, it might spiral upward year after year, economists worry.

“What we’re trying to do is get inflation, keep inflation expectations well anchored at 2%,” Powell said at his news conference this week. “That’s always the ultimate goal.”

Inflation came in strong and wage growth remained elevated at the end of 2021, setting the stage for a challenging economic year in which the Federal Reserve and White House will try to maintain momentum in the job market while wrestling price gains under control.

Inflation came in strong and wage growth remained elevated at the end of 2021, setting the stage for a challenging economic year in which the Federal Reserve and White House will try to maintain momentum in the job market while wrestling price gains under control. The personal consumption expenditures index, the Fed’s preferred inflation gauge, came in at 5.8% in December, up from 5.7% the prior month. That beat out the prior month to become the fastest pace since 1982. Inflation is moderating somewhat on a monthly basis, but its still-high annual readings come at a moment when pay is picking up briskly. While robust wage growth is good news for workers, it also increases the risk of sustained high inflation: Companies may raise prices to try to cover rising labour costs. The Employment Cost Index, a measure of pay and benefits the Fed watches closely, picked up 1% in the final quarter of 2021 from the prior year. While that was less of a gain than the 1.2% economists in a Bloomberg survey had forecast, it capped a robust year of increases: The gauge climbed 4% in the year through the fourth quarter, with its wages and salaries measure picking up 4.5%. That marked the fastest pace of increase for both the overall compensation and the wages and salaries measure since the data series started two decades ago. “Overall wage growth, on a nominal basis, is still pretty strong,” said Omair Sharif, founder of Inflation Insights — referring to the data before they are adjusted for inflation. “The downside is that inflation is eating away at all of these nominal gains.” Price gains are also chipping away at consumer confidence, making inflation a political liability for the Biden administration and Democrats during a midterm election year. While the White House has taken steps aimed at relieving pressure on choked supply chains, the job of slowing down demand to bring prices under control rests primarily with the Fed. The Fed’s policymakers have signalled that they will likely begin to raise interest rates at their March meeting as they try to prevent today’s quick price increases from becoming a more permanent feature of the economic landscape. Markets are nervously eyeing the Fed’s next steps, trying to gauge how much it will raise rates and how rapidly. Higher borrowing costs could slow down economic growth and lower stock prices, taking some of the buoyancy out of the U.S. expansion. Economists do expect inflation to fade this year, though tangled supply chains make it difficult to gauge when that will happen. The world’s trade system remains under pronounced stress, based on various measures — including one produced by the Federal Reserve Bank of New York that incorporates backlogs, delivery times and inventories. Inflation sped up starting last year as people bought more goods, aided by repeated government relief checks and other federal benefits. The world’s factories and shipping lines have struggled to keep up with demand, resulting in rising prices for cars, lumber and clothing. While spending has moderated somewhat recently — it fell in December as omicron spread, as goods consumption declined — it is unclear whether that is a blip caused by the pandemic or a lasting pullback. Fed officials have been watching for signs that inflation, which they have projected will ease to less than 3% by the end of the year, might instead linger. “We are attentive to the risks that persistent real wage growth in excess of productivity could put upward pressure on inflation,” Jerome Powell, the Fed’s chair, said during a news conference Wednesday. Friday’s data could offer officials some slight reprieve. Powell had in December specifically cited the previously Employment Cost Index reading — which came in high during the third quarter — as one reason that the Fed had decided to shift from stoking growth to preparing to fight back if inflation becomes long-lasting. The fact that the measure did not pick up as sharply as expected in the final quarter of the year could give investors some confidence that the central bank’s policy-setting group, the Federal Open Market Committee, will not further speed up its plans to withdraw economic help. “With labor participation creeping higher, and measures of excess demand flattening in recent months, it is reasonable to think that wage growth is unlikely to reaccelerate dramatically,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote following the release. “In the meantime, this report eases the immediate pressure on the FOMC to act aggressively.” As inflation uncertainty lingers and another wave of virus prevents a return to normal life, several measures of consumer confidence have shown that people are becoming less optimistic. The University of Michigan survey has shown sentiment faltering as prices have risen, and The Conference Board’s index ticked down in January. “You have very high inflation, so people are seeing an erosion of their purchasing power,” said Dana M. Peterson, chief economist at The Conference Board, noting that the resurgent virus is also to blame. “People will have higher confidence once we’re beyond omicron.” For now, it is a moment of pronounced economic uncertainty. Ashley Fahr, owner of the culinary company and event space La Cuisine in Venice, California, said rising grocery costs began to bite at a difficult moment — just before omicron began to surge, causing people to pull back from activities like the cooking classes and catering events she offers. She noticed in December that her food bill had gone up by about 15%, chipping away at her margins, and she passed about 5% of that on to customers while absorbing the rest of the increase. “I didn’t want to quote a number people would balk at,” she said. Fahr said she pays her workers — most of whom are independent contractors — competitive wages and that it is hard to keep up with rising prices and still turn a profit. She is watching to see what other local caterers and cooking classes do with their pricing — and whether they begin to pass on the full increase to customers. “If everyone else does it, I’ll do it too,” Fahr said. That sort of logic is what economic officials worry about. If businesses and consumers begin to expect prices to steadily rise, they may begin to accept instead of resisting them — and when inflation gets baked into expectations, it might spiral upward year after year, economists worry. “What we’re trying to do is get inflation, keep inflation expectations well anchored at 2%,” Powell said at his news conference this week. “That’s always the ultimate goal.”

Wages rise at fastest pace since 2002 as inflation continues to run hot

The International Monetary Fund (IMF) has slashed its growth prediction for 2022, citing higher-than-expected inflation and the Omicron variant&nbsp;as reasons for the downgrade.

In a quarterly update on predictions released in October 2021, the IMF predicted that growth would be 4.4 percent this year, down 0.5 percentage points from last year, with the possibility of a worse performance.

The downgrading was blamed on mounting cost pressures and the rapid spread of Omicron, according to the Washington-based organisation, which added that while the forecast for the world's two largest economies – the US and China—was considerably worse in 2022, few countries would be spared a downturn.&nbsp;

The UK is predicted to increase by 4.7 per cent in 2022, down 0.3 percentage points from the IMF's October 2021 World Economic Outlook prediction.

Despite the cut, the IMF predicts that the UK will expand faster this year than the other six G7 industrial nations — the United States, Japan, Germany, France, Italy, and Canada.&nbsp;

The United States, the world's largest economy, saw its estimate slashed due to concerns over President Joe Biden's spending agenda, while China, the world's second-largest economy, faced real estate issues.

According to the IMF, the global economy grew 5.9% last year, the greatest in four decades of detailed statistics.

This followed a 3.1 percent drop in 2020, the largest drop in broader data since the Great Depression.

(With inputs from agencies)

The International Monetary Fund (IMF) has slashed its growth prediction for 2022, citing higher-than-expected inflation and the Omicron variant as reasons for the downgrade.

The International Monetary Fund (IMF) has slashed its growth prediction for 2022, citing higher-than-expected inflation and the Omicron variant as reasons for the downgrade. In a quarterly update on predictions released in October 2021, the IMF predicted that growth would be 4.4 percent this year, down 0.5 percentage points from last year, with the possibility of a worse performance. The downgrading was blamed on mounting cost pressures and the rapid spread of Omicron, according to the Washington-based organisation, which added that while the forecast for the world's two largest economies – the US and China—was considerably worse in 2022, few countries would be spared a downturn. The UK is predicted to increase by 4.7 per cent in 2022, down 0.3 percentage points from the IMF's October 2021 World Economic Outlook prediction. Despite the cut, the IMF predicts that the UK will expand faster this year than the other six G7 industrial nations — the United States, Japan, Germany, France, Italy, and Canada. The United States, the world's largest economy, saw its estimate slashed due to concerns over President Joe Biden's spending agenda, while China, the world's second-largest economy, faced real estate issues. According to the IMF, the global economy grew 5.9% last year, the greatest in four decades of detailed statistics. This followed a 3.1 percent drop in 2020, the largest drop in broader data since the Great Depression. (With inputs from agencies)

IMF cuts 2022 economic growth outlook amid inflation

Troubles seem to find US President Joe Biden’s way nowadays. With tensions rife on several fronts like Ukraine, the president seems to have triggered a row at home too. &nbsp;

While answering a question about inflation on Monday, Biden responded to a Fox News reporter with vulgarity. &nbsp;

The incident happened when the president was in the East Room of the White House for a meeting of his Competition Council. &nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/world/hard-to-ignore-us-woman-finds-3-million-lottery-prize-winning-mail-in-spam-folder-447152" hreflang="en">Hard to ignore: US woman finds $3 million lottery prize winning mail in spam folder</a>

The panel is focused on changing regulations and enforcing laws to help consumers deal with high prices. &nbsp;&nbsp;

After Biden's remarks, several reporters shouted a number of questions in the room. &nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
Biden heard calling a journalist a "stupid son of a bitch" after question about inflation. 
 
🇺🇸🗞 Reporter: 
— "Do you think inflation is a political liability in the midterms?" 
 
🇺🇸 US President Joe Biden: 
— "It's a great asset — more inflation. What a stupid son of a bitch." <a href="https://t.co/zpIHM9NRSG">pic.twitter.com/zpIHM9NRSG</a>
— Ric 🍙 (@RiceKun) <a href="https://twitter.com/RiceKun/status/1485773212910858240?ref_src=twsrc%5Etfw">January 25, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Fox News reporter Peter Doocy asked about inflation. It is at a nearly 40-year high and seems to be hurting the president's public approval badly. &nbsp;&nbsp;

The network, which Doocy works with, has been critical of Biden. &nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/world/cruise-ship-goes-off-course-docks-in-bahamas-find-out-what-happened-447026" hreflang="en">Cruise ship goes off course, docks in Bahamas. Find out what happened</a>

Doocy asked, "Do you think inflation is a political liability ahead of the midterms?" &nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
President Biden said this about a reporter: 
 
“What a stupid son of a bitch.” 
 
President Bush and President Obama had enough decency to not use vulgarity unlike Donald Trump and Joe Biden. 
 
I miss the days of having a US president that didn’t lash out like an angry teenager.
— 🇺🇸🌊Serena Democrat Patriot 🌊🇺🇸 (@USPatriotSerena) <a href="https://twitter.com/USPatriotSerena/status/1485795239961014273?ref_src=twsrc%5Etfw">January 25, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Responding with sarcasm, Biden said, "It's a great asset -- more inflation." Then, he shook his head and added, "What a stupid son of a bitch." &nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
If you have any doubt that inflation is a political liability, then you're a stupid son of a bitch who shouldn't be asking the US President questions as a career.
— Extremely Stable Genius (@ProbzNotABot) <a href="https://twitter.com/ProbzNotABot/status/1485806837702316035?ref_src=twsrc%5Etfw">January 25, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

The outrageous comments were captured on video and by his microphone. &nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
Biden is not your favourite dank Youtuber. Calling a journalist a "son of a bitch" was wrong when Trump did it and it is wrong when Biden has done it.The liberals celebrating it as a dunk are showing how partisan their principles are.A sitting US President should show more grace.
— Shehzad Ghias Shaikh (@Shehzad89) <a href="https://twitter.com/Shehzad89/status/1485775408440164357?ref_src=twsrc%5Etfw">January 25, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

In a subsequent appearance on his network, Doocy laughed it off and jokingly said, "Nobody has fact-checked him yet and said it's not true." &nbsp;&nbsp;

(With inputs from agencies)&nbsp;

Troubles seem to find US President Joe Biden’s way nowadays. With tensions rife on several fronts like Ukraine, the president seems to have triggered a row at home too.

Troubles seem to find US President Joe Biden’s way nowadays. With tensions rife on several fronts like Ukraine, the president seems to have triggered a row at home too. While answering a question about inflation on Monday, Biden responded to a Fox News reporter with vulgarity. The incident happened when the president was in the East Room of the White House for a meeting of his Competition Council. Also Read: Hard to ignore: US woman finds $3 million lottery prize winning mail in spam folder The panel is focused on changing regulations and enforcing laws to help consumers deal with high prices. After Biden's remarks, several reporters shouted a number of questions in the room. Biden heard calling a journalist a "stupid son of a bitch" after question about inflation. 🇺🇸🗞 Reporter: — "Do you think inflation is a political liability in the midterms?" 🇺🇸 US President Joe Biden: — "It's a great asset — more inflation. What a stupid son of a bitch." pic.twitter.com/zpIHM9NRSG — Ric 🍙 (@RiceKun) January 25, 2022 × Fox News reporter Peter Doocy asked about inflation. It is at a nearly 40-year high and seems to be hurting the president's public approval badly. The network, which Doocy works with, has been critical of Biden. Also Read: Cruise ship goes off course, docks in Bahamas. Find out what happened Doocy asked, "Do you think inflation is a political liability ahead of the midterms?" President Biden said this about a reporter: “What a stupid son of a bitch.” President Bush and President Obama had enough decency to not use vulgarity unlike Donald Trump and Joe Biden. I miss the days of having a US president that didn’t lash out like an angry teenager. — 🇺🇸🌊Serena Democrat Patriot 🌊🇺🇸 (@USPatriotSerena) January 25, 2022 × Responding with sarcasm, Biden said, "It's a great asset -- more inflation." Then, he shook his head and added, "What a stupid son of a bitch." If you have any doubt that inflation is a political liability, then you're a stupid son of a bitch who shouldn't be asking the US President questions as a career. — Extremely Stable Genius (@ProbzNotABot) January 25, 2022 × The outrageous comments were captured on video and by his microphone. Biden is not your favourite dank Youtuber. Calling a journalist a "son of a bitch" was wrong when Trump did it and it is wrong when Biden has done it.The liberals celebrating it as a dunk are showing how partisan their principles are.A sitting US President should show more grace. — Shehzad Ghias Shaikh (@Shehzad89) January 25, 2022 × In a subsequent appearance on his network, Doocy laughed it off and jokingly said, "Nobody has fact-checked him yet and said it's not true." (With inputs from agencies)

Watch: US President Joe Biden calls reporter 'stupid son of a b****' on hot mic. Find out why

US President Joe Biden found himself in hot soup after he was caught on hot microphone calling a journalist 'a ‘stupid son of a b****’ when asked about inflation.

US President Joe Biden caught cursing journalist on hot microphone

Hit hard by the covid-19 pandemic, Sri Lanka is facing its most severe financial crisis in years. The nation's inflation rate accelerated to 14% in December 2021 which is up from 11.1% a month earlier. Now for the second consecutive month, the country has recorded double-digit inflation growth.

Sri Lanka grappling with inflation, food crisis hits new record

Pakistan's Prime Minister Imran Khan says he is having 'sleepless nights' over inflation. The admission comes days after he claimed Pakistan's economy was better than India's. Palki Sharma examines the shape of Pakistan's economy.

Gravitas: Imran Khan having 'sleepless nights' over inflation

Pakistan's Prime Minister Imran Khan has admitted that commodity and fuel prices have skyrocketed in the nation, stating that the inflation issue keeps him awake at night.

Inflation keeps Pakistan PM Imran Khan awake at night

Pakistan's Prime Minister Imran Khan has admitted that commodity and fuel prices have skyrocketed in the nation, stating that the inflation issue keeps him awake at night.

During a live on-air program on Saturday, in response to a question about skyrocketing inflation, Imran Khan said that it was the only problem that "kept [him] awake at night", according to a report by Dawn.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/in-a-first-pakistan-gets-a-female-supreme-court-judge-447052">In a first, Pakistan gets a female Supreme Court judge</a>

Prime Minister Imran Khan also noted that the current inflation was a "global phenomenon" and that several countries are currently experiencing supply shortages because of the COVID-19 pandemic.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
“The biggest challenge we face today is inflation &amp; rising prices of commodities. I am well aware and cognisant of the issues being faced by the common man due to rising prices.” - Prime Minister <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> <a href="https://twitter.com/hashtag/%D8%A2%D9%BE%DA%A9%D8%A7_%D9%88%D8%B2%DB%8C%D8%B1%D8%A7%D8%B9%D8%B8%D9%85_%D8%A2%D9%BE%DA%A9%DB%92_%D8%B3%D8%A7%D8%AA%DA%BE?src=hash&amp;ref_src=twsrc%5Etfw">#آپکا_وزیراعظم_آپکے_ساتھ</a> <a href="https://t.co/Y7qDjMA3v2">pic.twitter.com/Y7qDjMA3v2</a>
— PTI (@PTIofficial) <a href="https://twitter.com/PTIofficial/status/1485205921768869891?ref_src=twsrc%5Etfw">January 23, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

He also noted that when the Pakistan Tehreek-i-Insaf led government came to power, it had to deal with a massive account deficit, which led to an increase in import prices.

Imran stated that the US spent USD 6,000 billion for the welfare of the people during the pandemic, and Pakistan spent USD 8 billion.&nbsp;

"We must compare the situation of both countries," he added.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/foreign-funding-fraud-by-imran-khans-pti-authorities-to-reveal-entire-scrutiny-committee-report-445776">Foreign funding fraud by Imran Khan's PTI: Authorities to reveal entire scrutiny committee report</a>

Moreover, the Pakistani Prime Minister noted that the UK and some European countries are currently experiencing record inflation.

Acknowledging that inflation has affected Pakistanis a lot, Imran said the salaried class has been the worst hit.

Asking the media to take a "balanced approach" when discussing inflation, he said that the media must inform citizens of the situation around the world.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
“Criticism is important in every part of the world. I’ve always faced criticism, but there’s difference between criticism and propaganda/fake news”- Prime Minister <a href="https://twitter.com/ImranKhanPTI?ref_src=twsrc%5Etfw">@ImranKhanPTI</a> <a href="https://twitter.com/hashtag/%D8%A2%D9%BE%DA%A9%D8%A7_%D9%88%D8%B2%DB%8C%D8%B1%D8%A7%D8%B9%D8%B8%D9%85_%D8%A2%D9%BE%DA%A9%DB%92_%D8%B3%D8%A7%D8%AA%DA%BE?src=hash&amp;ref_src=twsrc%5Etfw">#آپکا_وزیراعظم_آپکے_ساتھ</a> <a href="https://t.co/AaA2VkvM8X">pic.twitter.com/AaA2VkvM8X</a>
— PTI (@PTIofficial) <a href="https://twitter.com/PTIofficial/status/1485259245637488641?ref_src=twsrc%5Etfw">January 23, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

The Prime Minister of Pakistan Imran Khan also warned the opposition parties that he was not willing to grant them any concessions and that forcing him to step down would make him more dangerous.

Responding to a question about the long march planned on March 23 by the Pakistan Democratic Movement (PDM), he said that the move would fail.

"If I take to the streets, then you (opposition parties) won't find any place to hide," Khan said, adding that he would be more dangerous if forced to step down.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
"اگر میں گورنمنٹ سے نکل گیا تو میں آپ لوگوں کیلئے زیادہ خطرناک ہوں.." 
یہ پیغام کس کیلۓ تھا؟؟ 
<a href="https://t.co/uBA03WT7E8">pic.twitter.com/uBA03WT7E8</a>
— Raza Ahmad Rumi (@Razarumi) <a href="https://twitter.com/Razarumi/status/1485231192920186891?ref_src=twsrc%5Etfw">January 23, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Maulana Fazlur Rahman, the head of the PDM and Jamiat Ulema-e-Islam-Fazl, has declared that the opposition parties will march to Islamabad on March 23 in an effort to remove Imran Khan's "incapable and illegitimate" government.

Additionally, Khan slammed Shehbaz Sharif, the Leader of the Opposition in the National Assembly, and refused to speak with him.

"I get called out for not meeting Shehbaz as he is the Leader of the Opposition. (But) I see him as the nation's criminal," he said.

Watch |&nbsp;Pakistan is facing massive inflation, PM Imran Khan states facing poverty unable to sleep

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/pakistan-is-facing-massive-inflation-pm-imran-khan-states-facing-poverty-unable-to-sleep-447085/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

He accused the head of the Pakistan Muslim League-Nawaz (PML-N) of evading corruption charges by not responding to allegations.

According to Khan, his government will complete its current term and win the next general elections.

He claimed that the opposition was blackmailing the government and if he ever gave them any concessions it would be a "betrayal."

(With inputs from agencies)

Pakistan's Prime Minister Imran Khan has admitted that commodity and fuel prices have skyrocketed in the nation, stating that the inflation issue keeps him awake at night. During a live on-air program on Saturday, in response to a question about skyrocketing inflation, Imran Khan said that it was the only problem that "kept [him] awake at night", according to a report by Dawn. Also read | In a first, Pakistan gets a female Supreme Court judge Prime Minister Imran Khan also noted that the current inflation was a "global phenomenon" and that several countries are currently experiencing supply shortages because of the COVID-19 pandemic. “The biggest challenge we face today is inflation & rising prices of commodities. I am well aware and cognisant of the issues being faced by the common man due to rising prices.” - Prime Minister @ImranKhanPTI #آپکا_وزیراعظم_آپکے_ساتھ pic.twitter.com/Y7qDjMA3v2 — PTI (@PTIofficial) January 23, 2022 × He also noted that when the Pakistan Tehreek-i-Insaf led government came to power, it had to deal with a massive account deficit, which led to an increase in import prices. Imran stated that the US spent USD 6,000 billion for the welfare of the people during the pandemic, and Pakistan spent USD 8 billion. "We must compare the situation of both countries," he added. Also read | Foreign funding fraud by Imran Khan's PTI: Authorities to reveal entire scrutiny committee report Moreover, the Pakistani Prime Minister noted that the UK and some European countries are currently experiencing record inflation. Acknowledging that inflation has affected Pakistanis a lot, Imran said the salaried class has been the worst hit. Asking the media to take a "balanced approach" when discussing inflation, he said that the media must inform citizens of the situation around the world. “Criticism is important in every part of the world. I’ve always faced criticism, but there’s difference between criticism and propaganda/fake news”- Prime Minister @ImranKhanPTI #آپکا_وزیراعظم_آپکے_ساتھ pic.twitter.com/AaA2VkvM8X — PTI (@PTIofficial) January 23, 2022 × The Prime Minister of Pakistan Imran Khan also warned the opposition parties that he was not willing to grant them any concessions and that forcing him to step down would make him more dangerous. Responding to a question about the long march planned on March 23 by the Pakistan Democratic Movement (PDM), he said that the move would fail. "If I take to the streets, then you (opposition parties) won't find any place to hide," Khan said, adding that he would be more dangerous if forced to step down. "اگر میں گورنمنٹ سے نکل گیا تو میں آپ لوگوں کیلئے زیادہ خطرناک ہوں.." یہ پیغام کس کیلۓ تھا؟؟ pic.twitter.com/uBA03WT7E8 — Raza Ahmad Rumi (@Razarumi) January 23, 2022 × Maulana Fazlur Rahman, the head of the PDM and Jamiat Ulema-e-Islam-Fazl, has declared that the opposition parties will march to Islamabad on March 23 in an effort to remove Imran Khan's "incapable and illegitimate" government. Additionally, Khan slammed Shehbaz Sharif, the Leader of the Opposition in the National Assembly, and refused to speak with him. "I get called out for not meeting Shehbaz as he is the Leader of the Opposition. (But) I see him as the nation's criminal," he said. Watch | Pakistan is facing massive inflation, PM Imran Khan states facing poverty unable to sleep He accused the head of the Pakistan Muslim League-Nawaz (PML-N) of evading corruption charges by not responding to allegations. According to Khan, his government will complete its current term and win the next general elections. He claimed that the opposition was blackmailing the government and if he ever gave them any concessions it would be a "betrayal." (With inputs from agencies)

Pakistan PM says inflation keeps him 'awake at night', slams opposition for trying to destabilise his govt

As per the Prime Minister of Pakistan the state of the economy has given Imran Khan sleepless nights. Pakistan is facing the biggest economic crisis in history as it has been ranked as a country with the fourth highest inflation rate in the world.

Pakistan is facing massive inflation, PM Imran Khan states facing poverty unable to sleep

The United Kingdom's inflation rose to 5.4 per cent in December, reaching the highest level in almost 30 years.

UK inflation hits highest in nearly 30 years

As rental accommodation and used cars maintain their strong gains, the US consumer prices increased solidly in the month of December culminating in what is being described as the largest annual rise in terms of inflation.

US Consumer prices at 40-year high as rental accommodation & used cars maintain strong gains

US inflation at nearly 40-year high

US Consumer prices at nearly 40-year high as rental accommodation & used cars maintain strong gains

The global economy is facing a dramatic downturn due to new dangers from COVID-19 variants, as well as rising inflation, debt, and income inequality, which might jeopardise the recovery in emerging and developing economies, according to the World Bank.

As pent-up demand fades, fiscal and monetary assistance is removed around the world, and supply disruptions linger, global growth is predicted to slow to 4.1 percent in 2022 and 3.2 percent in 2023, according to the Washington-based lender's Global Economic Prospects report released on Tuesday.&nbsp;

Following a strong rebound in 2021, the global economy is entering a pronounced slowdown amid fresh threats from COVID-19 variants and a rise in inflation, debt, and income inequality that could endanger the recovery in emerging and developing economies. 
 
<a href="https://www.wionews.com/world/omicron-was-in-canadian-wastewater-in-november-before-it-was-found-in-south-africa-443845">Also read | Omicron was in Canadian wastewater in November before it was found in South Africa</a> 
 
The World Bank said that global growth is expected to decelerate markedly from 5.5 percent in 2021 to 4.1 percent in 2022 and 3.2 percent in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world.

The World Bank said economic growth in Europe and Central Asia will slow to 3 percent in 2022 and decline further to 2.9 percent in 2023, the World Bank said. 
 
Watch | Gravitas: Omicron ushers in another supply chain crisis

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-omicron-ushers-in-another-supply-chain-crisis-443995/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

ECA growth is expected to slow to 3% in 2022, roughly half of what it was in 2021, as tighter macroeconomic policy and recurring COVID-19 outbreaks, including from Omicron, weigh on demand.Regional growth is forecast to continue to ease in 2023, reaching 2.9 per cent, as fiscal support continues to be withdrawn, "the report said.

According to a World Bank report released in 2020, the damage caused by the COVID-19 pandemic — which triggered the worst recession since the Great Depression in the 1930s — was greater in middle-income and poor countries, reversing gains made in reducing poverty levels over the previous two decades.&nbsp; 
 
Watch | Gravitas: Wuhan Virus returns to China

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-wuhan-virus-returns-to-china-443992/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

New COVID-19 outbreaks, persistent supply chain bottlenecks, and inflationary pressures could increase the risk of a hard landing in emerging markets and developing economies, according to the lender, at a time when many governments in developing economies lack the policy space to support activity if needed.

According to the report, the downturn will correspond with a widening gap in growth rates between advanced and emerging nations.&nbsp;

India to grow at 8.3%

India, on the other hand, is a relative bright spot in the South Asian picture.

The bank's forecast for India's growth in 2021-22 remains unchanged from its June forecast.

However, the forecasts for 2022-23 and 2023-24 have been revised to 8.7% and 6.8%, respectively, "indicating higher private sector and infrastructure investment, as well as dividends from continuing reforms."

According to preliminary estimates from the country's statistics office, India's GDP will increase 9.2 percent this fiscal year, ensuring that the economy will surpass its pre-pandemic level (2019–20).

In December, most high frequency indicators were at or above pre-pandemic levels, while limits imposed by the Omicron-driven third wave of the coronavirus pandemic caused increased disruptions in January.

(With inputs from agencies)

The global economy is facing a dramatic downturn due to new dangers from COVID-19 variants, as well as rising inflation, debt, and income inequality, which might jeopardise the recovery in emerging and developing economies, according to the World Bank.

The global economy is facing a dramatic downturn due to new dangers from COVID-19 variants, as well as rising inflation, debt, and income inequality, which might jeopardise the recovery in emerging and developing economies, according to the World Bank. As pent-up demand fades, fiscal and monetary assistance is removed around the world, and supply disruptions linger, global growth is predicted to slow to 4.1 percent in 2022 and 3.2 percent in 2023, according to the Washington-based lender's Global Economic Prospects report released on Tuesday. Following a strong rebound in 2021, the global economy is entering a pronounced slowdown amid fresh threats from COVID-19 variants and a rise in inflation, debt, and income inequality that could endanger the recovery in emerging and developing economies. Also read | Omicron was in Canadian wastewater in November before it was found in South Africa The World Bank said that global growth is expected to decelerate markedly from 5.5 percent in 2021 to 4.1 percent in 2022 and 3.2 percent in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world. The World Bank said economic growth in Europe and Central Asia will slow to 3 percent in 2022 and decline further to 2.9 percent in 2023, the World Bank said. Watch | Gravitas: Omicron ushers in another supply chain crisis ECA growth is expected to slow to 3% in 2022, roughly half of what it was in 2021, as tighter macroeconomic policy and recurring COVID-19 outbreaks, including from Omicron, weigh on demand.Regional growth is forecast to continue to ease in 2023, reaching 2.9 per cent, as fiscal support continues to be withdrawn, "the report said. According to a World Bank report released in 2020, the damage caused by the COVID-19 pandemic — which triggered the worst recession since the Great Depression in the 1930s — was greater in middle-income and poor countries, reversing gains made in reducing poverty levels over the previous two decades. Watch | Gravitas: Wuhan Virus returns to China New COVID-19 outbreaks, persistent supply chain bottlenecks, and inflationary pressures could increase the risk of a hard landing in emerging markets and developing economies, according to the lender, at a time when many governments in developing economies lack the policy space to support activity if needed. According to the report, the downturn will correspond with a widening gap in growth rates between advanced and emerging nations. India to grow at 8.3% India, on the other hand, is a relative bright spot in the South Asian picture. The bank's forecast for India's growth in 2021-22 remains unchanged from its June forecast. However, the forecasts for 2022-23 and 2023-24 have been revised to 8.7% and 6.8%, respectively, "indicating higher private sector and infrastructure investment, as well as dividends from continuing reforms." According to preliminary estimates from the country's statistics office, India's GDP will increase 9.2 percent this fiscal year, ensuring that the economy will surpass its pre-pandemic level (2019–20). In December, most high frequency indicators were at or above pre-pandemic levels, while limits imposed by the Omicron-driven third wave of the coronavirus pandemic caused increased disruptions in January. (With inputs from agencies)

Global GDP growth to slow through 2023 amid COVID-19, inflation: World Bank

The Pakistan government is under fire once again. This time it is about concealing his party's foreign funding from the election commission. According to a damning media report, the PTI and staff party underreported an amount of 312 million Pakistani rupees.

Pakistan: Imran Khan's Party under scrutiny over ‘Concealed Foreign Funding’

Sri Lanka's financial woes have forced it to shut three diplomatic missions. With record-high inflation and depleting foreign reserves, Colombo is facing a financial meltdown. Reports suggest it could even go bankrupt by the end of 2022. Palki Sharma gets you a report.

Gravitas: Sri Lanka shuts 3 diplomatic missions as economic crisis gets worse

Sri Lanka is facing crippling financial and humanitarian crisis with fears it could go bankrupt in 2022 as inflation rises to record levels, the Sri Lankan cabinet will take a decision on IMF bailout options.

Sri Lanka grapples with high inflation, will the island nation go for an IMF bailout?

Turkey's annual&nbsp;inflation&nbsp;rate surged to its&nbsp;highest&nbsp;level&nbsp;since&nbsp;2002&nbsp;in December, official data showed Monday, after a currency crisis sparked by President Recep Tayyip Erdogan's unconventional economic policies.

Consumer prices jumped to 36.1 percent last month from the same period in 2020, up from 21.3 percent in November, according to the&nbsp;Turkish&nbsp;statistics office.

The figure is the&nbsp;highest&nbsp;since&nbsp;October&nbsp;2002&nbsp;when&nbsp;inflation&nbsp;reached 33.45 percent, before the party of Erdogan came to power.

It is also more than seven times the official government target.

Erdogan's enduring success has often been attributed to the development and prosperity his government enabled after a financial crisis in 2001.

His Islamic-rooted party rose to power the following year, and he has dominated&nbsp;Turkish&nbsp;politics for the past two decades as both prime minister and president.

But he faces an increasingly difficult path to re-election in polls due to be held by mid-2023.

Opinion polls show him losing in a second-round runoff against most major rivals, and his ruling alliance ceding control of parliament to an increasingly popular group of opposition parties.

But Erdogan has stuck fast to his policies, opposing interest rate hikes -- which he calls "the mother and father of all evil" -- to combat&nbsp;inflation.

<a href="https://www.wionews.com/world/watch-thousands-protest-in-amsterdam-against-covid-restrictions-441905">Also read |&nbsp;Watch: Thousands protest in Amsterdam against Covid restrictions</a>

High interest rates are a drag on activity and slow down economic growth.

But central banks raise their policy rates out of necessity when&nbsp;inflation&nbsp;gets out of hand.

Erdogan on Monday accused "the elites" of profiting from "unearned interest income", sticking by his pledge not to raise borrowing costs.

Lira collapse

The&nbsp;Turkish&nbsp;lira lost 44 percent of its value against the dollar in 2021, with the losses accelerating at the end of last year, when Erdogan orchestrated a series of sharp interest rate reductions.

The dollar soared to a historic high of nearly 18.4 liras by the time Erdogan announced new currency support measures last month that were backed by reportedly heavy indirect interest rate interventions.

The exchange rate has&nbsp;since&nbsp;slipped back down to around 13 liras to the dollar, although the&nbsp;Turkish&nbsp;currency lost a further two percent after the latest&nbsp;inflation&nbsp;reading was announced.

A dollar was worth 7.4 liras at the start of 2021.

The monthly&nbsp;inflation&nbsp;reading has turned into an politically-sensitive issue in Turkey, with opposition leaders claiming that the government is putting pressure on the statistics agency to underreport price jumps.

<a href="https://www.wionews.com/technology/technology-giants-spy-on-staff-to-prevent-unionising-report-says-441951">Also read |&nbsp;Technology giants spy on staff to prevent unionising, report says</a>

They point to separate readings prepared to independent economic institutes such as the&nbsp;Inflation&nbsp;Research Group (ENAG), which calculated last month's annual&nbsp;inflation&nbsp;rate at 82.8 percent.

The official readings show prices for most food staples raising substantially above the annual&nbsp;inflation&nbsp;rate.

The price of milk, yogurt and sunflower oil all jumped by roughly 75 percent on the year, while that of chicken rose by 86 percent.

Erdogan has raised the take-home monthly minimum rage by 50 percent, raising it to 4,250 liras (about $310, 275 liras), which economists worry will further feed&nbsp;inflation.

His government has also raised sharply raised utility costs, including those of heat, gas and electricity.

Turkey's annual inflation rate surged to its highest level since 2002 in December, official data showed Monday, after a currency crisis sparked by President Recep Tayyip Erdogan's unconventional economic policies.

Turkey's annual inflation rate surged to its highest level since 2002 in December, official data showed Monday, after a currency crisis sparked by President Recep Tayyip Erdogan's unconventional economic policies. Consumer prices jumped to 36.1 percent last month from the same period in 2020, up from 21.3 percent in November, according to the Turkish statistics office. The figure is the highest since October 2002 when inflation reached 33.45 percent, before the party of Erdogan came to power. It is also more than seven times the official government target. Erdogan's enduring success has often been attributed to the development and prosperity his government enabled after a financial crisis in 2001. His Islamic-rooted party rose to power the following year, and he has dominated Turkish politics for the past two decades as both prime minister and president. But he faces an increasingly difficult path to re-election in polls due to be held by mid-2023. Opinion polls show him losing in a second-round runoff against most major rivals, and his ruling alliance ceding control of parliament to an increasingly popular group of opposition parties. But Erdogan has stuck fast to his policies, opposing interest rate hikes -- which he calls "the mother and father of all evil" -- to combat inflation. Also read | Watch: Thousands protest in Amsterdam against Covid restrictions High interest rates are a drag on activity and slow down economic growth. But central banks raise their policy rates out of necessity when inflation gets out of hand. Erdogan on Monday accused "the elites" of profiting from "unearned interest income", sticking by his pledge not to raise borrowing costs. Lira collapse The Turkish lira lost 44 percent of its value against the dollar in 2021, with the losses accelerating at the end of last year, when Erdogan orchestrated a series of sharp interest rate reductions. The dollar soared to a historic high of nearly 18.4 liras by the time Erdogan announced new currency support measures last month that were backed by reportedly heavy indirect interest rate interventions. The exchange rate has since slipped back down to around 13 liras to the dollar, although the Turkish currency lost a further two percent after the latest inflation reading was announced. A dollar was worth 7.4 liras at the start of 2021. The monthly inflation reading has turned into an politically-sensitive issue in Turkey, with opposition leaders claiming that the government is putting pressure on the statistics agency to underreport price jumps. Also read | Technology giants spy on staff to prevent unionising, report says They point to separate readings prepared to independent economic institutes such as the Inflation Research Group (ENAG), which calculated last month's annual inflation rate at 82.8 percent. The official readings show prices for most food staples raising substantially above the annual inflation rate. The price of milk, yogurt and sunflower oil all jumped by roughly 75 percent on the year, while that of chicken rose by 86 percent. Erdogan has raised the take-home monthly minimum rage by 50 percent, raising it to 4,250 liras (about $310, 275 liras), which economists worry will further feed inflation. His government has also raised sharply raised utility costs, including those of heat, gas and electricity.

Turkish inflation hits new record high after currency crisis

Pakistani citizens are unsatisfied. Inflation is battering the economy, prices if everyday good are on a rise, petrol diesel prices are surging, and most importantly, Imran Khan government do not have funds to run the country.

Inflation batters Pakistan's economy under Imran Khan govt

The United States Federal Reserve said that it would end its pandemic-era bond purchases in March and pave the way for three quarter-percentage-point interest rate hikes by the end of 2022 as the economy nears full employment and the US central bank copes with a surge of inflation.

US Federal Reserve signals three rate hikes in 2022 as inflation fight begins

US President Joe Biden is facing significant skepticism from the American public, with his job approval rating lagging across a range of major issues, including handling of inflation, COVID-19 and gun violence.

Joe Biden faces lowest approval ratings yet in handling of inflation, COVID-19

Wholesale prices in Germany sees a record jump. Higher consumer prices may, in turn, burden the general public.

German wholesale prices see record jump | Higher consumer prices may follow

For the first time in decades, consumer prices in the US surged by 6.8 per cent in November, reveals the latest data by the Consumer Price Index data This comes as the highest annual inflation rate since June 1982.&nbsp;

As per the latest data, the surge comes as a result of an increase in component indexes. Some of the large contributors are: gasoline, shelter, food, used cars and trucks.&nbsp;

Inflation has been a matter of concern since the pandemic has hit the globe.

The energy index saw a surge of 3.5 per cent in November as the gasoline index increased by 6.1 per cent. The food index saw an increase of 0.7 per cent as the index for food at home rose 0.8 per cent.

Acknowledging the current scenario, US President Joe Biden said, "Today's numbers reflect the pressures that economies around the world are facing as we emerge from a global pandemic, prices are rising."&nbsp;

Deeming inflation as "a real bump in the road," he said that "price and cost increase are slowing, although not as quickly as we'd like."&nbsp;

<a href="https://www.wionews.com/world/on-human-rights-day-us-imposes-sanctions-on-myanmar-china-north-korea-435962">Also read |&nbsp;On Human Rights Day, US imposes sanctions on Myanmar, China, North Korea</a>

The food index increased 0.7 per cent in November after rising 0.9 per cent in both September and October. The food at home index increased 0.8 per cent in November.&nbsp;The indexes for other food at home and fruits and vegetables both increased by 1 per cent in November.

The index for meats, poultry, fish, and eggs rose 0.9 per cent. Within this group, the index for pork surged drastically by &nbsp;2.2 per cent. However, the index for eggs declined in November by 2.7 per cent.&nbsp;

In terms of energy, it rose by 3.5 per cent in November after there was a 4.8 per cent hike in October. The gasoline index rose 6.1 per cent in November. The electricity index increased 0.3 per cent. The index for natural gas also saw a minor surge of 0.6 per cent.

Mickey Levy, chief economist covering the Americas and Asia at Berenberg Capital Markets, highlighted the supply bottlenecks, the Federal Reserve's low-interest-rate policies and pandemic recovery legislation.

<a href="https://www.wionews.com/world/ukraine-russia-tensions-biden-talks-to-germanys-scholz-as-kyiv-leader-looks-for-talks-with-moscow-435971">Also read |&nbsp;Ukraine-Russia tensions: Biden talks to Germany's Scholz as Kyiv leader looks for talks with Moscow</a>

"The Biden administration fears the negative political fallout of the impact of higher inflation on households and is trying to defer the blame on special factors," Levy said

Earlier, in October, Inflation across a variety of products in the US hit its highest point in more than 30 years. The consumer price index rose 6.2 per cent from a year ago. This is the most since December 1990.

(With inputs from agencies)

For the first time in decades, consumer prices in the US surged by 6.8 per cent in November, reveals the latest data by the Consumer Price Index data This comes as the highest annual inflation rate since June 1982.

For the first time in decades, consumer prices in the US surged by 6.8 per cent in November, reveals the latest data by the Consumer Price Index data This comes as the highest annual inflation rate since June 1982. As per the latest data, the surge comes as a result of an increase in component indexes. Some of the large contributors are: gasoline, shelter, food, used cars and trucks. Inflation has been a matter of concern since the pandemic has hit the globe. The energy index saw a surge of 3.5 per cent in November as the gasoline index increased by 6.1 per cent. The food index saw an increase of 0.7 per cent as the index for food at home rose 0.8 per cent. Acknowledging the current scenario, US President Joe Biden said, "Today's numbers reflect the pressures that economies around the world are facing as we emerge from a global pandemic, prices are rising." Deeming inflation as "a real bump in the road," he said that "price and cost increase are slowing, although not as quickly as we'd like." Also read | On Human Rights Day, US imposes sanctions on Myanmar, China, North Korea The food index increased 0.7 per cent in November after rising 0.9 per cent in both September and October. The food at home index increased 0.8 per cent in November. The indexes for other food at home and fruits and vegetables both increased by 1 per cent in November. The index for meats, poultry, fish, and eggs rose 0.9 per cent. Within this group, the index for pork surged drastically by 2.2 per cent. However, the index for eggs declined in November by 2.7 per cent. In terms of energy, it rose by 3.5 per cent in November after there was a 4.8 per cent hike in October. The gasoline index rose 6.1 per cent in November. The electricity index increased 0.3 per cent. The index for natural gas also saw a minor surge of 0.6 per cent. Mickey Levy, chief economist covering the Americas and Asia at Berenberg Capital Markets, highlighted the supply bottlenecks, the Federal Reserve's low-interest-rate policies and pandemic recovery legislation. Also read | Ukraine-Russia tensions: Biden talks to Germany's Scholz as Kyiv leader looks for talks with Moscow "The Biden administration fears the negative political fallout of the impact of higher inflation on households and is trying to defer the blame on special factors," Levy said Earlier, in October, Inflation across a variety of products in the US hit its highest point in more than 30 years. The consumer price index rose 6.2 per cent from a year ago. This is the most since December 1990. (With inputs from agencies)

For the first time in 39 years, Inflation surged by 6.8% in the US

According to a survey, Pakistani citizens are unsatisfied. Inflation is battering the economy, prices if everyday good are on a rise, petrol diesel prices are surging, and most importantly, Imran Khan government do not have funds to run the country.

Inflation batter Pakistan's economy, 50% citizens blame Imran Khan government

Pakistan’s Prime Minister Imran Khan has barred federal cabinet members from going abroad without permission. This is an attempt by Khan to reduce the government's spending as the country's inflation rate continues to sky-rocket.

Pakistan PM Imran Khan forbids ministers from travelling abroad

inflation

Inflation, News on Inflation, stories on Inflation, articles on Inflation, Inflation stories at Wion, Inflation news, Inflation latest news