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

United Kingdom: Costs are rising at the fastest rate in over two decades for firms and the services sector. According to a business survey, the Bank of England may soon raise interest rates available.

UK inflation surges to a 10-year high of 4.2% in October: Report

The White House is receiving backlash for having a Christmas tree worth $139,000 for this year's Christmas. This will be topped with an additional $171,000 for the Christmas tree lighting ceremony. Not only this, but the White House has also reportedly spent $41,000 on Christmas decorations for the Eisenhower building and Jackson Place.

All of this is happening at a time when the world is facing a supply chain crisis, causing inflation.&nbsp;

A report by TMZ revealed that National Christmas Tree Lighting Festivities will include a live audience and performances by Patti LaBelle, Billy Porter, Chris Stapleton and others.&nbsp;

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First Lady Jill Biden recently welcomed the official White House Christmas tree, which is an 18.5ft long Fraser fir tree.

The tree was lavishly brought up to the north portico in a carriage driven by horses.

<a href="https://www.wionews.com/world/supply-chain-crisis-us-christmas-tree-shortage-could-threaten-the-upcoming-festive-season-432475">Also read |&nbsp;Supply chain crisis: US Christmas tree shortage could threaten the upcoming festive season</a>

The 18.5ft long Fraser will now stand tall in the Blue Room of the White House.&nbsp;

Meanwhile, there have been concerns about the shortage of both plastic trees and live firs. This is because of the supply chain crisis and the effects of the climate crisis.

The American Christmas Tree Association, in a statement, assured the citizens that "Christmas will not be cancelled."

"Despite expectations of similar consumer demand in 2021, the Christmas tree industry could experience a shortage of both artificial and live trees," it said.&nbsp;

Weather events, including fires, drought, and heat waves have affected live Christmas tree crop yields. Some farmers in Oregon reported that they lost up to 90 per cent of their crops this year.&nbsp;

The White House is receiving backlash for having a Christmas tree worth $139,000 for this year's Christmas. This will be topped with an additional $171,000 for the Christmas tree lighting ceremony.

The White House is receiving backlash for having a Christmas tree worth $139,000 for this year's Christmas. This will be topped with an additional $171,000 for the Christmas tree lighting ceremony. Not only this, but the White House has also reportedly spent $41,000 on Christmas decorations for the Eisenhower building and Jackson Place. All of this is happening at a time when the world is facing a supply chain crisis, causing inflation. A report by TMZ revealed that National Christmas Tree Lighting Festivities will include a live audience and performances by Patti LaBelle, Billy Porter, Chris Stapleton and others. View this post on Instagram A post shared by First Lady Dr. Jill Biden (@flotus) × First Lady Jill Biden recently welcomed the official White House Christmas tree, which is an 18.5ft long Fraser fir tree. The tree was lavishly brought up to the north portico in a carriage driven by horses. Also read | Supply chain crisis: US Christmas tree shortage could threaten the upcoming festive season The 18.5ft long Fraser will now stand tall in the Blue Room of the White House. Meanwhile, there have been concerns about the shortage of both plastic trees and live firs. This is because of the supply chain crisis and the effects of the climate crisis. The American Christmas Tree Association, in a statement, assured the citizens that "Christmas will not be cancelled." "Despite expectations of similar consumer demand in 2021, the Christmas tree industry could experience a shortage of both artificial and live trees," it said. Weather events, including fires, drought, and heat waves have affected live Christmas tree crop yields. Some farmers in Oregon reported that they lost up to 90 per cent of their crops this year.

Biden slammed for buying White House Christmas tree worth $139K as world grapples with inflation

According to experts, inflation, supply chain crisis, and pandemic will impact the shoppers and retailers during the holiday period in the United States. This special broadcast of WION-VOA tells you about the impact of inflation on American shoppers and businesses.

Experts: Supply chain issues and online sales to impact retail in US

'Pakistan is running out of money. The sustainability of our country is at stake, there's no money to run the nation,' says PM Imran Khan. Inflation is battering the economy, it has surged by almost 9.2% in October from 2020, prices of everyday goods are on the rise. WION's correspondent Anas Mallick brings us all the latest developments.

Inflation: Rising foreign debt a national security issue, says Pakistan PM Imran Khan

In a bid to reassure Americans angry about inflation and goods shortages as they prepare for Thanksgiving -- and to lift his poll ratings -- President Joe Biden&nbsp;on Tuesday&nbsp;tapped the US strategic oil reserves.

Biden announced this coordinated plan to release 50 million barrels of crude from the country's oil reserves onto the market, hoping to ease the growing discontent about inflation and fuel costs.

The White House said that following weeks of negotiations, "this release will be taken in parallel with other major energy consuming nations, including China, India, Japan, Republic of Korea and the United Kingdom."

India plans to release 5 million barrels of oil from its caverns.

Also read |&nbsp;<a href="https://www.wionews.com/world/us-asks-india-china-others-to-consider-tapping-oil-reserves-430236">US asks India, China, others to consider tapping oil reserves</a>

"It will take time but before long you should see the price of gas drop," Biden said in a speech at the White House.

According to a senior administration official, it is anticipated that the releases will begin in mid-to-late December, and&nbsp;"responding to a once-in-a-century pandemic," further interventions may be necessary to stabilise the market.

"The president stands ready to take additional action if needed and is prepared to use his full authorities, working in coordination with the rest of the world, to maintain adequate supply as we exit the pandemic."

Also read |&nbsp;<a href="https://www.wionews.com/world/crunch-at-ports-may-mean-crisis-for-american-farms-429345">Crunch at ports may mean crisis for American farms</a>

Even as the US economy bounces back from the COVID-19 lockdowns, supply chain disruptions and inflation are stirring fears as the holiday season begins with Thanksgiving on Thursday.

"Moms and dads are worried asking will there be enough food we can afford to buy for the holidays? Will we be able to get Christmas presents to the kids on time?" Biden said, acknowledging that for many the price rises are "painful."

Critics, however, accuse him of failing to grasp the challenge.

The president pushed back on critics by noting that the two biggest trading ports, both located in southern California, were now working 24/7, as opposed to just 40 hours a week.

In the last few years, gasoline prices have fallen by about 10 per cent on the wholesale market, but at the pump, they remain the same.

Also read |&nbsp;<a href="https://www.wionews.com/world/history-says-dont-panic-about-inflation-428730">History says don’t panic about inflation</a>

"In other words, gas supply companies are paying less and making a lot more," he said, accusing companies of "pocketing the difference" between wholesale and retail prices.

Nevertheless, Biden's reassurances on tapping the oil reserve failed to impress Republican opponents.&nbsp;

"Joe Biden's failed leadership caused skyrocketing prices, and now American families are paying more for gas, groceries, and everything this Thanksgiving," Republican National Committee chair Ronna McDaniel said in a statement.

Watch |&nbsp;India, Japan working on oil-stock release

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/india-japan-working-on-oil-stock-release-431344/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Due to an increase in production, oil prices have already dropped nearly 10 per cent in the last few weeks. Officials echoed Joe Biden's concern that gasoline prices for drivers have risen despite the decline in crude prices.

A senior official, speaking on condition of anonymity, said the government was looking into "anti-competitive practices" and will "examine whether illegal conduct is costing families at the pump."

(With inputs from agencies)

In a bid to reassure Americans angry about inflation and goods shortages as they prepare for Thanksgiving -- and to lift his poll ratings -- President Joe Biden on Tuesday tapped the US strategic oil reserves.

In a bid to reassure Americans angry about inflation and goods shortages as they prepare for Thanksgiving -- and to lift his poll ratings -- President Joe Biden on Tuesday tapped the US strategic oil reserves. Biden announced this coordinated plan to release 50 million barrels of crude from the country's oil reserves onto the market, hoping to ease the growing discontent about inflation and fuel costs. The White House said that following weeks of negotiations, "this release will be taken in parallel with other major energy consuming nations, including China, India, Japan, Republic of Korea and the United Kingdom." India plans to release 5 million barrels of oil from its caverns. Also read | US asks India, China, others to consider tapping oil reserves "It will take time but before long you should see the price of gas drop," Biden said in a speech at the White House. According to a senior administration official, it is anticipated that the releases will begin in mid-to-late December, and "responding to a once-in-a-century pandemic," further interventions may be necessary to stabilise the market. "The president stands ready to take additional action if needed and is prepared to use his full authorities, working in coordination with the rest of the world, to maintain adequate supply as we exit the pandemic." Also read | Crunch at ports may mean crisis for American farms Even as the US economy bounces back from the COVID-19 lockdowns, supply chain disruptions and inflation are stirring fears as the holiday season begins with Thanksgiving on Thursday. "Moms and dads are worried asking will there be enough food we can afford to buy for the holidays? Will we be able to get Christmas presents to the kids on time?" Biden said, acknowledging that for many the price rises are "painful." Critics, however, accuse him of failing to grasp the challenge. The president pushed back on critics by noting that the two biggest trading ports, both located in southern California, were now working 24/7, as opposed to just 40 hours a week. In the last few years, gasoline prices have fallen by about 10 per cent on the wholesale market, but at the pump, they remain the same. Also read | History says don’t panic about inflation "In other words, gas supply companies are paying less and making a lot more," he said, accusing companies of "pocketing the difference" between wholesale and retail prices. Nevertheless, Biden's reassurances on tapping the oil reserve failed to impress Republican opponents. "Joe Biden's failed leadership caused skyrocketing prices, and now American families are paying more for gas, groceries, and everything this Thanksgiving," Republican National Committee chair Ronna McDaniel said in a statement. Watch | India, Japan working on oil-stock release Due to an increase in production, oil prices have already dropped nearly 10 per cent in the last few weeks. Officials echoed Joe Biden's concern that gasoline prices for drivers have risen despite the decline in crude prices. A senior official, speaking on condition of anonymity, said the government was looking into "anti-competitive practices" and will "examine whether illegal conduct is costing families at the pump." (With inputs from agencies)

US to release strategic oil reserves in coordination with major fuel user countries

The Turkish Lira sank to an all-time low this week. People of Turkey are suffering due to high inflation. President Erdogan's approval ratings have dropped. The opposition is calling for an early election. Palki Sharma tells you how Erdogan's empire is crumbling.

Gravitas: Recep Tayyip Erdogan's empire is crumbling

Back in July, the White House’s Council of Economic Advisers posted a thoughtful article to its blog titled, “Historical Parallels to Today’s Inflationary Episode.” The article looked at six surges in inflation since World War II and argued persuasively that current events don’t look anything like the 1970s. Instead, the closest parallel to 2021’s inflation is the first of these surges, the price spike from 1946-48.

Wednesday’s consumer price report was ugly; inflation is running considerably hotter than many people, myself included, expected. But nothing about it contradicted CEA’s analysis — on the contrary, the similarity to early postwar inflation looks stronger than ever. What we’re experiencing now is a lot more like 1947 than like 1979.

And here’s what you need to know about that 1946-48 inflation spike: It was a one-time event, not the start of a protracted wage-price spiral. And the biggest mistake policymakers made in response to that inflation surge was failing to appreciate its transitory nature: They were still fighting inflation even as inflation was ceasing to be a problem, and in so doing helped bring on the recession of 1948-49.

About Wednesday’s price report: It looked very much like the classic story of inflation resulting from an overheated economy, in which too much money is chasing too few goods. Earlier this year the rise in prices had a narrow base, being driven largely by food, energy, used cars and services like air travel that were rebounding from the pandemic. That’s less true now: It looks as if demand is outstripping supply across much of the economy.

One caveat to this story is that overall demand in the United States actually doesn’t look all that high; real gross domestic product, which is equal to real spending on U.S.-produced goods and services, is still about two per cent below what we would have expected the economy’s capacity to be if the pandemic hadn’t happened. But demand has been skewed, with consumers buying fewer services but more goods than before, putting a strain on ports, trucking, warehouses and more. These supply-chain issues have been exacerbated by the global shortage of semiconductor chips, together with the Great Resignation — the reluctance of many workers to return to their old jobs. So we’re having an inflation spurt.

On the plus side, jobs have rarely been this plentiful for those who want them. And contrary to the cliche, current inflation isn’t falling most heavily on the poor: Wage increases have been especially rapid for the lowest-paid workers.

So what can 1946-48 teach us about inflation in 2021? Then as now there was a surge in consumer spending, as families rushed to buy the goods that had been unavailable in wartime. Then as now it took time for the economy to adjust to a big shift in demand — in the 1940s, the shift from military to civilian needs. Then as now the result was inflation, which in 1947 topped out at almost 20 per cent. Nor was this inflation restricted to food and energy; wage growth in manufacturing, which was much more representative of the economy as a whole in 1947 than it is now, peaked at 22 per cent.

But the inflation didn’t last. It didn’t end immediately: Prices kept rising rapidly for well over a year. Over the course of 1948, however, inflation plunged, and by 1949 it had turned into brief deflation.

What, then, does history teach us about the current inflation spike? One lesson is that brief episodes of overheating don’t necessarily lead to 1970s-type stagflation — 1946-48 didn’t cause long-term inflation, and neither did the other episodes that most resemble where we are now: World War I and the Korean War. And we really should have some patience: Given what happened in the 1940s, pronouncements that inflation can’t be transitory because it has persisted for a number of months are just silly.

Oh, and for what it’s worth, the bond market is in effect predicting a temporary bump in inflation, not a permanent rise. Yields on inflation-protected bonds maturing over the next couple of years are strongly negative, implying that investors expect rapid price rises in the near term. But longer-term market expectations of inflation have remained stable.

Another lesson, which is extremely relevant right now (hello, Sen. Manchin), is that an inflation spurt is no reason to cancel long-term investment plans. The inflation surge of the 1940s was followed by an epic period of public investment in America’s future, which included the construction of the Interstate Highway System. That investment didn’t reignite inflation — if anything, by improving America’s logistics, it probably helped keep inflation down. The same can be said of the Biden administration’s spending proposals, which would do little to boost short-term demand and would help long-term supply.

So yes, that was an ugly inflation report, and we hope that future reports will look better. But people making knee-jerk comparisons with the 1970s and screaming about stagflation are looking at the wrong history. When you look at the right history, it tells you not to panic.

Back in July, the White House’s Council of Economic Advisers posted a thoughtful article to its blog titled, “Historical Parallels to Today’s Inflationary Episode.

Back in July, the White House’s Council of Economic Advisers posted a thoughtful article to its blog titled, “Historical Parallels to Today’s Inflationary Episode.” The article looked at six surges in inflation since World War II and argued persuasively that current events don’t look anything like the 1970s. Instead, the closest parallel to 2021’s inflation is the first of these surges, the price spike from 1946-48. Wednesday’s consumer price report was ugly; inflation is running considerably hotter than many people, myself included, expected. But nothing about it contradicted CEA’s analysis — on the contrary, the similarity to early postwar inflation looks stronger than ever. What we’re experiencing now is a lot more like 1947 than like 1979. And here’s what you need to know about that 1946-48 inflation spike: It was a one-time event, not the start of a protracted wage-price spiral. And the biggest mistake policymakers made in response to that inflation surge was failing to appreciate its transitory nature: They were still fighting inflation even as inflation was ceasing to be a problem, and in so doing helped bring on the recession of 1948-49. About Wednesday’s price report: It looked very much like the classic story of inflation resulting from an overheated economy, in which too much money is chasing too few goods. Earlier this year the rise in prices had a narrow base, being driven largely by food, energy, used cars and services like air travel that were rebounding from the pandemic. That’s less true now: It looks as if demand is outstripping supply across much of the economy. One caveat to this story is that overall demand in the United States actually doesn’t look all that high; real gross domestic product, which is equal to real spending on U.S.-produced goods and services, is still about two per cent below what we would have expected the economy’s capacity to be if the pandemic hadn’t happened. But demand has been skewed, with consumers buying fewer services but more goods than before, putting a strain on ports, trucking, warehouses and more. These supply-chain issues have been exacerbated by the global shortage of semiconductor chips, together with the Great Resignation — the reluctance of many workers to return to their old jobs. So we’re having an inflation spurt. On the plus side, jobs have rarely been this plentiful for those who want them. And contrary to the cliche, current inflation isn’t falling most heavily on the poor: Wage increases have been especially rapid for the lowest-paid workers. So what can 1946-48 teach us about inflation in 2021? Then as now there was a surge in consumer spending, as families rushed to buy the goods that had been unavailable in wartime. Then as now it took time for the economy to adjust to a big shift in demand — in the 1940s, the shift from military to civilian needs. Then as now the result was inflation, which in 1947 topped out at almost 20 per cent. Nor was this inflation restricted to food and energy; wage growth in manufacturing, which was much more representative of the economy as a whole in 1947 than it is now, peaked at 22 per cent. But the inflation didn’t last. It didn’t end immediately: Prices kept rising rapidly for well over a year. Over the course of 1948, however, inflation plunged, and by 1949 it had turned into brief deflation. What, then, does history teach us about the current inflation spike? One lesson is that brief episodes of overheating don’t necessarily lead to 1970s-type stagflation — 1946-48 didn’t cause long-term inflation, and neither did the other episodes that most resemble where we are now: World War I and the Korean War. And we really should have some patience: Given what happened in the 1940s, pronouncements that inflation can’t be transitory because it has persisted for a number of months are just silly. Oh, and for what it’s worth, the bond market is in effect predicting a temporary bump in inflation, not a permanent rise. Yields on inflation-protected bonds maturing over the next couple of years are strongly negative, implying that investors expect rapid price rises in the near term. But longer-term market expectations of inflation have remained stable. Another lesson, which is extremely relevant right now (hello, Sen. Manchin), is that an inflation spurt is no reason to cancel long-term investment plans. The inflation surge of the 1940s was followed by an epic period of public investment in America’s future, which included the construction of the Interstate Highway System. That investment didn’t reignite inflation — if anything, by improving America’s logistics, it probably helped keep inflation down. The same can be said of the Biden administration’s spending proposals, which would do little to boost short-term demand and would help long-term supply. So yes, that was an ugly inflation report, and we hope that future reports will look better. But people making knee-jerk comparisons with the 1970s and screaming about stagflation are looking at the wrong history. When you look at the right history, it tells you not to panic.

History says don’t panic about inflation

Inflation across a variety of products in the US, which are consumed on a daily basis hit their highest point in more than 30 years, the labor department reported. The consumer price index rose 6.2 per cent from a year ago. This is the most since December 1990.&nbsp;

Inflation has been a matter of concern since the pandemic has hit the globe. The Bureau for Labour Statistics said that rising prices for food, shelter, used cars and trucks and new vehicles were the top contributors.

Based on monthly basis, the CPI increased 0.9 per cent against the 0.6 per cent estimate.&nbsp;

Meat, fish and eggs rose more than any other food related stuff. Also, petrol prices are at seven-year highs. Almost every sector saw some price inflation, except for airfares and alcoholic beverages.

<a href="https://www.wionews.com/world/inflation-pandemic-pushing-people-into-poverty-in-pakistan-404665">Also read |&nbsp;Inflation, pandemic pushing people into poverty in Pakistan</a>

Fuel prices soared 12.3 per cent for the month. Energy prices overall rose 4.8 per cent in October and are up 30 per cent for the one year.

Used vehicle prices again were a big contributor as they rose by 2.5 per cent on the month and 26.4 per cent for the year. New vehicle prices were up 1.4 per cent and 9.8 per cent, respectively.

The labor department revealed that there were also massive shortage of staff which prompted employers to raise wages in several sectors.

<a href="https://www.wionews.com/business-economy/indias-wpi-inflation-rose-in-august-over-costlier-manufactured-goods-412956">Also read |&nbsp;India's WPI inflation rose in August over costlier manufactured goods</a>

Shelter costs increased by 0.5 per cent.

Seema Shah, chief strategist at Principal Global Investors was quoted by CNBC as saying, "Inflation is clearly getting worse before it gets better, while the significant rise in shelter prices is adding to concerning evidence of a broadening in inflation pressures."

Inflation across a variety of products in the US, which are consumed on a daily basis hit their highest point in more than 30 years, the labor department reported.

Inflation across a variety of products in the US, which are consumed on a daily basis hit their highest point in more than 30 years, the labor department reported. The consumer price index rose 6.2 per cent from a year ago. This is the most since December 1990. Inflation has been a matter of concern since the pandemic has hit the globe. The Bureau for Labour Statistics said that rising prices for food, shelter, used cars and trucks and new vehicles were the top contributors. Based on monthly basis, the CPI increased 0.9 per cent against the 0.6 per cent estimate. Meat, fish and eggs rose more than any other food related stuff. Also, petrol prices are at seven-year highs. Almost every sector saw some price inflation, except for airfares and alcoholic beverages. Also read | Inflation, pandemic pushing people into poverty in Pakistan Fuel prices soared 12.3 per cent for the month. Energy prices overall rose 4.8 per cent in October and are up 30 per cent for the one year. Used vehicle prices again were a big contributor as they rose by 2.5 per cent on the month and 26.4 per cent for the year. New vehicle prices were up 1.4 per cent and 9.8 per cent, respectively. The labor department revealed that there were also massive shortage of staff which prompted employers to raise wages in several sectors. Also read | India's WPI inflation rose in August over costlier manufactured goods Shelter costs increased by 0.5 per cent. Seema Shah, chief strategist at Principal Global Investors was quoted by CNBC as saying, "Inflation is clearly getting worse before it gets better, while the significant rise in shelter prices is adding to concerning evidence of a broadening in inflation pressures."

US: Prices surge by 6.2 per cent; biggest inflation rate in three decades

Japan's real wages declined in September for the first time in three months as inflation picked up faster than growth in nominal pay.

World Business Watch: Japan's September real wages fell for first time in 3 months as inflation bites

Protests against price rise continue to haunt Imran Khan's government. Pakistan's economic intelligence unit has said that inflation will rise for the next half year in the country.

Pakistan: Protests against skyrocketing prices, opposition slams PM Imran Khan

Putting pressure on policymakers ahead of the last monetary policy meeting of the year South Korea's consumer inflation accelerated to a near 10-year peak in October on higher costs of oil products, housing rentals and outdoor dining.

South Korea inflation hits near decade-high, raising rate hike bets

Germany's best-selling tabloid Bild scathingly criticised European Central Bank (ECB) President Christine Lagarde on Saturday, accusing her of destroying the earnings and savings of ordinary people by tolerating a rise in inflation.

The article, echoing a Bild attack on Lagarde's predecessor Mario Draghi in 2019, may signal fresh hostility towards the ECB on the part of the German public, which has for a decade been sceptical of the bank`s ultra-easy policy.

Two days ago the bank left rates policy unchanged despite consumer price growth hitting a 13-year high. 
The newspaper called Lagarde "Madam Inflation,", accusing her of being a high-earner who liked wearing luxury fashion and saying she didn't seem to care about ordinary people's difficulties. "Christine Lagarde is melting pensions, wages and savings," it said.

Also Read |&nbsp;<a href="https://www.wionews.com/sports/german-cup-borussia-moenchengladbach-hammer-bayern-munich-5-0-to-enter-third-round-424715">German Cup: Borussia Moenchengladbach hammer Bayern Munich 5-0 to enter third round</a>

Asked about the article by Reuters, an ECB spokesperson noted that in her Thursday news conference Lagarde had acknowledged inflation is "clearly of concern" to citizens, and said policymakers did a "lot of soul-searching" before holding off on tightening policy.

Bild's attack comes a week after German central bank chief Jens Weidmann, an outspoken critic of ECB policy, quit his job, arguing that 10 years in the role is enough while also warning over inflation risks.

Inflation in the euro zone hit 4.1 per cent&nbsp;this month, equalling its all-time-high, while German inflation is even higher, likely approaching 5 per cent&nbsp;by year end.

Germany's best-selling tabloid Bild scathingly criticised European Central Bank (ECB) President Christine Lagarde on Saturday, accusing her of destroying the earnings and savings of ordinary people by tolerating a rise in inflation.

Germany's best-selling tabloid Bild scathingly criticised European Central Bank (ECB) President Christine Lagarde on Saturday, accusing her of destroying the earnings and savings of ordinary people by tolerating a rise in inflation. The article, echoing a Bild attack on Lagarde's predecessor Mario Draghi in 2019, may signal fresh hostility towards the ECB on the part of the German public, which has for a decade been sceptical of the bank`s ultra-easy policy. Two days ago the bank left rates policy unchanged despite consumer price growth hitting a 13-year high. The newspaper called Lagarde "Madam Inflation,", accusing her of being a high-earner who liked wearing luxury fashion and saying she didn't seem to care about ordinary people's difficulties. "Christine Lagarde is melting pensions, wages and savings," it said. Also Read | German Cup: Borussia Moenchengladbach hammer Bayern Munich 5-0 to enter third round Asked about the article by Reuters, an ECB spokesperson noted that in her Thursday news conference Lagarde had acknowledged inflation is "clearly of concern" to citizens, and said policymakers did a "lot of soul-searching" before holding off on tightening policy. Bild's attack comes a week after German central bank chief Jens Weidmann, an outspoken critic of ECB policy, quit his job, arguing that 10 years in the role is enough while also warning over inflation risks. Inflation in the euro zone hit 4.1 per cent this month, equalling its all-time-high, while German inflation is even higher, likely approaching 5 per cent by year end.

German tabloid attacks ECB chief Lagarde as 'Madam Inflation'

As price increases became more broad-based, Australian core inflation sped to its fastest annual pace since 2015 in the September quarter. It's a major surprise that led markets to price in earlier hikes in interest rates.

Australia core inflation jumps to six-year high in Q3

Asian markets were mixed Monday following last week's gains with investors keeping a worried eye on a fresh Covid outbreak in China that could drag on the already stuttering economy.

Long-running worries about inflation continued to cast a shadow over trading floors, though a healthy batch of earnings have tempered those concerns in the past couple of weeks.

Reporting by tech titans including Amazon, Apple, Samsung and Microsoft are on the agenda this week, and will be closely followed for an idea about what impact supply chain snarls and rising prices is having on their bottom lines.

Their forward guidance will also be of interest as they contemplate tighter central bank monetary policies and a possible hike in interest rates next year. Tech firms are usually more susceptible to higher borrowing costs.

News that troubled China Evergrande had paid interest due on a bond before Saturday's deadline provided a much-needed boost to confidence though it remains to be seen whether it can meet obligations on other notes due before the end of the year.

Hong Kong and Shanghai fluctuated through the early session, with traders keeping tabs on the latest Delta variant outbreak in mainland China, which comes just over three months before the country hosts the Winter Olympics.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/hong-kong-stock-exchange-halts-trading-of-evergrande-shares-418036">Hong Kong Stock Exchange halts trading of Evergrande shares</a>

The latest spike has forced authorities to reimpose strict containment measures, but there are fears of a wider lockdown which would weigh on economic growth. Recent outbreaks this year played a role in the below-par expansion seen in the third quarter.

There were gains in Sydney, Seoul and Jakarta but Tokyo, Singapore, Taipei and Manila fell.

Traders are preparing for the Federal Reserve to join several other central banks around the world in winding down the massive financial support put in place at the outset of the pandemic.

Boss Jerome Powell said last week that the bank's vast bond-buying should now be tapered, with expectations he will begin the pullback as early as next month, though he was not ready to hike borrowing costs yet.

"The risks are clearly now to longer and more persistent bottlenecks, and thus to higher inflation," he said Friday.

"I would say our policy is well-positioned to manage a range of plausible outcomes," he said. "I do think it's time to taper and I don't think it's time to raise rates."

Oil prices pressed higher, with Brent at a three-year high above $86, while WTI was within sight of $85 for the first time since October 2014.

The latest rise comes after Saudi Arabia said OPEC and other major producers would be cautious in lifting output despite surging demand, warning that the pandemic still posed a threat to the outlook.

The Turkish lira tumbled more than one percent against the dollar after President Recep Tayyip Erdogan called for the expulsion of ambassadors from 10 countries, including Germany and the United States, who had appealed for the release of a jailed civil society leader.

Key figures around 0230 GMT&nbsp;

Tokyo - Nikkei 225: DOWN 1.0 percent at 28,520.35 (break)&nbsp;

Hong Kong - Hang Seng Index: FLAT at 26,121.47

Shanghai - Composite: UP 0.1 percent at 3,584.05

Euro/dollar: DOWN at $1.1645 from $1.1648 at 2050 GMT on Friday

Pound/dollar: UP at $1.3771 from $1.3759

Euro/pound: DOWN at 84.56 pence from 84.70 pence&nbsp;

Dollar/yen: UP at 113.70 from 113.46 yen

West Texas Intermediate: UP 1.0 percent at $84.59 per barrel

Brent North Sea crude: UP 0.8 percent at $86.17 per barrel&nbsp;

New York - Dow: UP 0.2 percent at 35,677.02 (close)

London - FTSE 100: UP 0.2 percent at 7,204.55 (close)

Asian markets were mixed Monday following last week's gains with investors keeping a worried eye on a fresh Covid outbreak in China that could drag on the already stuttering economy.

Asian markets were mixed Monday following last week's gains with investors keeping a worried eye on a fresh Covid outbreak in China that could drag on the already stuttering economy. Long-running worries about inflation continued to cast a shadow over trading floors, though a healthy batch of earnings have tempered those concerns in the past couple of weeks. Reporting by tech titans including Amazon, Apple, Samsung and Microsoft are on the agenda this week, and will be closely followed for an idea about what impact supply chain snarls and rising prices is having on their bottom lines. Their forward guidance will also be of interest as they contemplate tighter central bank monetary policies and a possible hike in interest rates next year. Tech firms are usually more susceptible to higher borrowing costs. News that troubled China Evergrande had paid interest due on a bond before Saturday's deadline provided a much-needed boost to confidence though it remains to be seen whether it can meet obligations on other notes due before the end of the year. Hong Kong and Shanghai fluctuated through the early session, with traders keeping tabs on the latest Delta variant outbreak in mainland China, which comes just over three months before the country hosts the Winter Olympics. Also Read | Hong Kong Stock Exchange halts trading of Evergrande shares The latest spike has forced authorities to reimpose strict containment measures, but there are fears of a wider lockdown which would weigh on economic growth. Recent outbreaks this year played a role in the below-par expansion seen in the third quarter. There were gains in Sydney, Seoul and Jakarta but Tokyo, Singapore, Taipei and Manila fell. Traders are preparing for the Federal Reserve to join several other central banks around the world in winding down the massive financial support put in place at the outset of the pandemic. Boss Jerome Powell said last week that the bank's vast bond-buying should now be tapered, with expectations he will begin the pullback as early as next month, though he was not ready to hike borrowing costs yet. "The risks are clearly now to longer and more persistent bottlenecks, and thus to higher inflation," he said Friday. "I would say our policy is well-positioned to manage a range of plausible outcomes," he said. "I do think it's time to taper and I don't think it's time to raise rates." Oil prices pressed higher, with Brent at a three-year high above $86, while WTI was within sight of $85 for the first time since October 2014. The latest rise comes after Saudi Arabia said OPEC and other major producers would be cautious in lifting output despite surging demand, warning that the pandemic still posed a threat to the outlook. The Turkish lira tumbled more than one percent against the dollar after President Recep Tayyip Erdogan called for the expulsion of ambassadors from 10 countries, including Germany and the United States, who had appealed for the release of a jailed civil society leader. Key figures around 0230 GMT Tokyo - Nikkei 225: DOWN 1.0 percent at 28,520.35 (break) Hong Kong - Hang Seng Index: FLAT at 26,121.47 Shanghai - Composite: UP 0.1 percent at 3,584.05 Euro/dollar: DOWN at $1.1645 from $1.1648 at 2050 GMT on Friday Pound/dollar: UP at $1.3771 from $1.3759 Euro/pound: DOWN at 84.56 pence from 84.70 pence Dollar/yen: UP at 113.70 from 113.46 yen West Texas Intermediate: UP 1.0 percent at $84.59 per barrel Brent North Sea crude: UP 0.8 percent at $86.17 per barrel New York - Dow: UP 0.2 percent at 35,677.02 (close) London - FTSE 100: UP 0.2 percent at 7,204.55 (close)

Asian markets swing as traders eye China outbreak, inflation

Amid record fuel prices, France has announced to provide €100 “inflation bonus” to the people on low to middle incomes and promised to freeze petrol prices in a bid to contain growing discontent over rising prices and an increase in living costs.

“We obviously want to protect French people, above all those who work hard and are taking the full force of these price rises,” said the government spokesperson, Gabriel Attal.

The announcement comes in the backdrop of impending presidential elections which is about to take place in six months. Experts argue that President Emmanuel Macron is seeking to limit damage to his economic record from spiralling energy prices.

Also read |<a href="https://www.wionews.com/world/watch-uk-fuel-crisis-as-people-wait-in-queues-man-rides-horse-into-gas-station-mocks-those-waiting-to-fill-up-on-fuel-417393">&nbsp;UK Fuel crisis, as people wait in queues, man rides horse into gas station, mocks those waiting to fill up on fuel</a>

The country’s prime minister, Jean Castex, said the one-off “inflation payout” would be given to all those earning less than €2,000 net a month, including private and public sector workers, the self-employed, job seekers and retired people. Distribution of the money would begin at the end of December.

Also read |&nbsp;<a href="https://www.wionews.com/world/macron-targets-radical-islam-in-france-with-massive-and-unprecedented-measures-347310">Macron targets radical Islam in France with 'massive and unprecedented' measures</a>

Castex said it would affect about 38 million people, and petrol prices would also be “frozen for the whole of 2022”.

He added that the €2000 threshold would be calculated per person, not per household, and that the government would stick to its 2022 budget deficit target of 5 per cent of GDP by compensating the payout with new income and budget savings.

As petrol prices steadily climbed in recent weeks, the government faced growing pressure to cut taxes paid at the pump, which can amount to up to 60 per cent of what drivers pay.

Also read |&nbsp;<a href="https://www.wionews.com/trending/watch-from-egg-and-slap-to-macron-to-flying-shoe-at-george-w-bush-when-world-leaders-were-at-the-receiving-end-390283">From egg, and slap, to Macron to flying shoe at George W Bush — When world leaders were at the receiving end</a>

The payout comes just before the three-year anniversary of the anti-government gilets jaunes or yellow vests protests that began in autumn 2018 as a motorists’ revolt against fuel tax.

Last weekend, small protests were held by gilets jaunes on roundabouts in some rural areas and small towns. The government is keen to stave off this escalating into fuel blockades or growing street marches.

Finance minister Bruno Le Maire argued that step would be costly to public finances and would also amount to a subsidy for fossil fuels at a time when the government was trying to wean the economy off them.

(With inputs from agencies)

Amid record fuel prices, France has announced to provide €100 “inflation bonus” to the people on low to middle incomes and promised to freeze petrol prices in a bid to contain growing discontent over rising prices and an increase in living costs.

Amid record fuel prices, France has announced to provide €100 “inflation bonus” to the people on low to middle incomes and promised to freeze petrol prices in a bid to contain growing discontent over rising prices and an increase in living costs. “We obviously want to protect French people, above all those who work hard and are taking the full force of these price rises,” said the government spokesperson, Gabriel Attal. The announcement comes in the backdrop of impending presidential elections which is about to take place in six months. Experts argue that President Emmanuel Macron is seeking to limit damage to his economic record from spiralling energy prices. Also read | UK Fuel crisis, as people wait in queues, man rides horse into gas station, mocks those waiting to fill up on fuel The country’s prime minister, Jean Castex, said the one-off “inflation payout” would be given to all those earning less than €2,000 net a month, including private and public sector workers, the self-employed, job seekers and retired people. Distribution of the money would begin at the end of December. Also read | Macron targets radical Islam in France with 'massive and unprecedented' measures Castex said it would affect about 38 million people, and petrol prices would also be “frozen for the whole of 2022”. He added that the €2000 threshold would be calculated per person, not per household, and that the government would stick to its 2022 budget deficit target of 5 per cent of GDP by compensating the payout with new income and budget savings. As petrol prices steadily climbed in recent weeks, the government faced growing pressure to cut taxes paid at the pump, which can amount to up to 60 per cent of what drivers pay. Also read | From egg, and slap, to Macron to flying shoe at George W Bush — When world leaders were at the receiving end The payout comes just before the three-year anniversary of the anti-government gilets jaunes or yellow vests protests that began in autumn 2018 as a motorists’ revolt against fuel tax. Last weekend, small protests were held by gilets jaunes on roundabouts in some rural areas and small towns. The government is keen to stave off this escalating into fuel blockades or growing street marches. Finance minister Bruno Le Maire argued that step would be costly to public finances and would also amount to a subsidy for fossil fuels at a time when the government was trying to wean the economy off them. (With inputs from agencies)

France offers €100 'inflation bonus' to low-income people to offset discontent against rising fuel prices

The sudden increase in tea prices in Pakistan has ruined the taste of the impoverished people's lips.

A cup of tea costs Rs 40 at Rawalpindi, the Pakistan Army's headquarters.

On the other side, Prime Minister Imran Khan, who coined the phrase "Naya Pakistan," is attempting to deceive the public in the name of Islam and India.

Not just tea, but sugar, gas, and vegetables have all reached the seventh heaven in Pakistan.&nbsp;

Milk prices in Rawalpindi have risen from Rs 105 to Rs 120 per litre, according to tea merchants.

Simultaneously, the retail price of tea leaves has risen from Rs 800 to Rs 900.

The price of a gas cylinder has also risen from Rs 1500 to Rs 3,000.

Vendors said that the price increases on all of these goods had a negative impact on their profits.

They have no choice but to raise the price of tea in such a circumstance.&nbsp;

(With inputs from agencies)

The sudden increase in tea prices in Pakistan has ruined the taste of the impoverished people's lips. A cup of tea costs Rs 40 at Rawalpindi, the Pakistan Army's headquarters.

The sudden increase in tea prices in Pakistan has ruined the taste of the impoverished people's lips. A cup of tea costs Rs 40 at Rawalpindi, the Pakistan Army's headquarters. On the other side, Prime Minister Imran Khan, who coined the phrase "Naya Pakistan," is attempting to deceive the public in the name of Islam and India. Not just tea, but sugar, gas, and vegetables have all reached the seventh heaven in Pakistan. Milk prices in Rawalpindi have risen from Rs 105 to Rs 120 per litre, according to tea merchants. Simultaneously, the retail price of tea leaves has risen from Rs 800 to Rs 900. The price of a gas cylinder has also risen from Rs 1500 to Rs 3,000. Vendors said that the price increases on all of these goods had a negative impact on their profits. They have no choice but to raise the price of tea in such a circumstance. (With inputs from agencies)

In Pakistan, where inflation is at an all-time high, a cup of tea costs Rs 40 

Former President Trump relished in President Biden's troubles, asking voters whether congested supply lines, increasing gas costs, and a humiliating withdrawal from Afghanistan made them miss him.&nbsp; 
 
<a href="https://www.wionews.com/world/56-in-us-feel-cheating-affected-2020-presidential-election-outcome-says-poll-420060">Also read | 56% in US feel cheating affected 2020 presidential election outcome, says poll</a> 
 
"Covid is raging out of control, our supply chains are crashing with little product in our stores, we were humiliated in Afghanistan, our Border is a complete disaster, gas prices and inflation are zooming upward—how’s Biden doing? Do you miss me yet?" Trump said in a statement on Wednesday.

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“COVID is raging out of control, our supply chains are crashing with little product in our stores, we were humiliated in Afghanistan, our Border is a complete disaster, gas prices and inflation are zooming upward—how’s Biden doing? Do you miss me yet?” <a href="https://t.co/xpxErrtH4P">pic.twitter.com/xpxErrtH4P</a>
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It was posted on Twitter by his spokesperson, Liz Harrington.

A new survey shows that 70 percent of Republicans want him to run for president in 2024, and that he has a commanding lead over his major GOP opponents.

Meanwhile, the Biden administration is having a difficult time on several fronts.

His legislative agenda is delayed as party officials attempt to mend internal squabbles over expenditure plans.

Officials at the White House are rushing to avert supply chain issues that they fear could result in more empty shelves and interruptions to holiday shopping.

Though the tone of the remark was similar to his trademark tweets, Trump was banned from Twitter in January – while still the president – after Twitter claimed his statements might be construed as encouraging violence in the aftermath of the disturbance at the US Capitol.

In a series of remarks subsequently, he has chastised Biden, whom he refuses to recognise as the actual president.

In the United States, annual inflation has reached 5.4 percent, the highest level since the 2008 financial crisis.

(With inputs from agencies)

Former President Trump relished in President Biden's troubles, asking voters whether congested supply lines, increasing gas costs, and a humiliating withdrawal from Afghanistan made them miss him.

Former President Trump relished in President Biden's troubles, asking voters whether congested supply lines, increasing gas costs, and a humiliating withdrawal from Afghanistan made them miss him. Also read | 56% in US feel cheating affected 2020 presidential election outcome, says poll "Covid is raging out of control, our supply chains are crashing with little product in our stores, we were humiliated in Afghanistan, our Border is a complete disaster, gas prices and inflation are zooming upward—how’s Biden doing? Do you miss me yet?" Trump said in a statement on Wednesday. NEW! “COVID is raging out of control, our supply chains are crashing with little product in our stores, we were humiliated in Afghanistan, our Border is a complete disaster, gas prices and inflation are zooming upward—how’s Biden doing? Do you miss me yet?” pic.twitter.com/xpxErrtH4P — Liz Harrington (@realLizUSA) October 13, 2021 × It was posted on Twitter by his spokesperson, Liz Harrington. A new survey shows that 70 percent of Republicans want him to run for president in 2024, and that he has a commanding lead over his major GOP opponents. Meanwhile, the Biden administration is having a difficult time on several fronts. His legislative agenda is delayed as party officials attempt to mend internal squabbles over expenditure plans. Officials at the White House are rushing to avert supply chain issues that they fear could result in more empty shelves and interruptions to holiday shopping. Though the tone of the remark was similar to his trademark tweets, Trump was banned from Twitter in January – while still the president – after Twitter claimed his statements might be construed as encouraging violence in the aftermath of the disturbance at the US Capitol. In a series of remarks subsequently, he has chastised Biden, whom he refuses to recognise as the actual president. In the United States, annual inflation has reached 5.4 percent, the highest level since the 2008 financial crisis. (With inputs from agencies)

'How's Biden doing? 'Do you miss me yet?': Trump pokes fun at US President

"Anyone recognise him?" the police in Winter Haven, Florida, asked on Facebook last month.

Photos with the post showed a man walking out of a Walmart without paying for his items after several of his credit cards were declined, police said. Among the items in his cart were boxes of diapers.

"When your card is declined and you try another one with the same result, that is NOT licence to just walk out with the items anyway," read the Facebook post, which was later deleted.

The Winter Haven Police Department drew swift criticism for the post from people wondering why the department had gone after a man who had stolen basic necessities for his children, also pictured in the surveillance photos.

"That’s a good father in a hard spot," one Facebook user said in response to the department’s follow-up post. "Have some empathy."

After the incident, which was previously reported by WFTS-TV in Tampa, Florida, the store asked the police not to prosecute the man, according to a waiver of prosecution the Winter Haven Police Department provided to The New York Times. Walmart and the man did not respond to requests for comment.

It’s possible the man was among the 1 in 3 American families who struggle with diaper need, according to a February 2020 report by the National Diaper Bank Network, an organization that provides diapers to children. Joanne Samuel Goldblum, the network’s founder and CEO, said she suspects that figure probably rose during the coronavirus pandemic as diaper prices increased and supply plummeted.

"Diaper need is a topic that’s so swept under the rug," she said Friday. "COVID really laid it bare for us."

The pandemic has upended global supply chains and created a run on many products, including diapers. Kimberly-Clark and Procter &amp; Gamble, two of the country’s largest diaper manufacturers, increased the prices of baby products this year. A typical package of 100 diapers costs $30 to $50 from most online retailers.

Diaper banks across the country have reported recent surges in families who couldn’t afford diapers. WestSide Baby, which is based in Seattle, distributed 2.4 million diapers last year, up 60% from 1.5 million in 2019, according to Sarah Cody Roth, the organization’s executive director. WestSide Baby is on track this year to meet or exceed last year’s total, she said.

"Anyone recognise him?" the police in Winter Haven, Florida, asked on Facebook last month. Photos with the post showed a man walking out of a Walmart without paying for his items after several of his credit cards were declined, police said.

"Anyone recognise him?" the police in Winter Haven, Florida, asked on Facebook last month. Photos with the post showed a man walking out of a Walmart without paying for his items after several of his credit cards were declined, police said. Among the items in his cart were boxes of diapers. "When your card is declined and you try another one with the same result, that is NOT licence to just walk out with the items anyway," read the Facebook post, which was later deleted. The Winter Haven Police Department drew swift criticism for the post from people wondering why the department had gone after a man who had stolen basic necessities for his children, also pictured in the surveillance photos. "That’s a good father in a hard spot," one Facebook user said in response to the department’s follow-up post. "Have some empathy." After the incident, which was previously reported by WFTS-TV in Tampa, Florida, the store asked the police not to prosecute the man, according to a waiver of prosecution the Winter Haven Police Department provided to The New York Times. Walmart and the man did not respond to requests for comment. It’s possible the man was among the 1 in 3 American families who struggle with diaper need, according to a February 2020 report by the National Diaper Bank Network, an organization that provides diapers to children. Joanne Samuel Goldblum, the network’s founder and CEO, said she suspects that figure probably rose during the coronavirus pandemic as diaper prices increased and supply plummeted. "Diaper need is a topic that’s so swept under the rug," she said Friday. "COVID really laid it bare for us." The pandemic has upended global supply chains and created a run on many products, including diapers. Kimberly-Clark and Procter & Gamble, two of the country’s largest diaper manufacturers, increased the prices of baby products this year. A typical package of 100 diapers costs $30 to $50 from most online retailers. Diaper banks across the country have reported recent surges in families who couldn’t afford diapers. WestSide Baby, which is based in Seattle, distributed 2.4 million diapers last year, up 60% from 1.5 million in 2019, according to Sarah Cody Roth, the organization’s executive director. WestSide Baby is on track this year to meet or exceed last year’s total, she said.

Diapers are the latest pandemic shortage

Eurozone inflation accelerated to 3.4 per cent year-on-year in September, reaching a 13-year high, according to an estimate published by Eurostat, the statistical office of the European Union (EU).

Eurozone accelerated to 3.4 per cent, inflation hits 13-year high

The wholesale price-based inflation rose marginally to 11.39 per cent in August, mainly due to higher prices of manufactured goods, even as prices of food articles softened.

Snapping the two-month easing trend, WPI inflation rose in August and remained in double-digit for the fifth consecutive month. In July 2021, WPI inflation stood at 11.16 per cent. In August 2020, WPI inflation was at 0.41 per cent.

"The high rate of inflation in August 2021 is primarily due to rise in prices of non-food articles, mineral oils; crude petroleum and natural gas; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared the corresponding month of the previous year," the Commerce and Industry Ministry said in a statement.

Inflation in food articles eased for the fourth straight month, recording (-) 1.29 per cent in August, from zero per cent in July, even as onion and pulses prices spiked.&nbsp;

Inflation in onions was high at 62.78 per cent&nbsp;while that in pulses was 9.41 per cent. In vegetables, it was (-) 13.30 per cent in August.

Inflation in crude petroleum and natural gas was 40.03 per cent in August.

In manufactured products, inflation stood at 11.39 per cent in August&nbsp;against 11.20 per cent in July.

The RBI&nbsp;which mainly takes into account retail inflation&nbsp;in its monetary policy last month had kept interest rates unchanged at record lows. It projected CPI or retail inflation at 5.7 per cent during 2021-22, up from its earlier projection of 5.1 per cent.

Data released on Monday showed that retail inflation softened to a four-month low of 5.3 per cent in August&nbsp;from 5.59 per cent in the previous month&nbsp;led by subdued prices of food articles.

The wholesale price-based inflation rose marginally to 11.39 per cent in August, mainly due to higher prices of manufactured goods, even as prices of food articles softened.

The wholesale price-based inflation rose marginally to 11.39 per cent in August, mainly due to higher prices of manufactured goods, even as prices of food articles softened. Snapping the two-month easing trend, WPI inflation rose in August and remained in double-digit for the fifth consecutive month. In July 2021, WPI inflation stood at 11.16 per cent. In August 2020, WPI inflation was at 0.41 per cent. "The high rate of inflation in August 2021 is primarily due to rise in prices of non-food articles, mineral oils; crude petroleum and natural gas; manufactured products like basic metals; food products; textiles; chemicals and chemical products etc as compared the corresponding month of the previous year," the Commerce and Industry Ministry said in a statement. Inflation in food articles eased for the fourth straight month, recording (-) 1.29 per cent in August, from zero per cent in July, even as onion and pulses prices spiked. Inflation in onions was high at 62.78 per cent while that in pulses was 9.41 per cent. In vegetables, it was (-) 13.30 per cent in August. Inflation in crude petroleum and natural gas was 40.03 per cent in August. In manufactured products, inflation stood at 11.39 per cent in August against 11.20 per cent in July. The RBI which mainly takes into account retail inflation in its monetary policy last month had kept interest rates unchanged at record lows. It projected CPI or retail inflation at 5.7 per cent during 2021-22, up from its earlier projection of 5.1 per cent. Data released on Monday showed that retail inflation softened to a four-month low of 5.3 per cent in August from 5.59 per cent in the previous month led by subdued prices of food articles.

India's WPI inflation rose in August over costlier manufactured goods

Japan's wholesale inflation hovered near a 13-year high in August as raw material imports continued to rise on solid global demand, putting pressure on companies to pass on higher costs to households.

World Business Watch: Japan's wholesale inflation hovers near 13-year high as material costs rise

Economic crisis adds to the misery of Afghans. The prices of everyday items are rising. Billions of dollars of aids stalled, there are restrictions on cash withdrawal from banks and the Taliban are yet to form a new government. WION's Anas Mallick gets you a ground report.

WION Ground Report: While world fears Taliban, Afghans worry about inflation

Retail prices in Britain have shot up owing to a national shortage of lorry drivers and disruption to the global supply chain caused by the Covid pandemic, according to the latest data from the British Retail Consortium (BRC).

According to the Guardian, the costs of Brexit-induced red tape is also fuelling inflation as household budgets start to feel the sting.

The latest figures from the BRC reveal a 0.4 per cent month-on-month rise in August, driven by a 0.6 per cent rise in non-food prices, which includes a sharp spike in the cost of electrical goods caused by shortages of micro-chips and shipping problems.

“There are some modest indications that rising costs are starting to filter through into product prices,” Helen Dickinson, the chief executive of the BRC, which represents hundreds of retail businesses, told the Guardian.

“Food retailers are fighting to keep their prices down as far as possible. But mounting pressures – from rising commodity and shipping costs as well as Brexit-related red tape, mean this will not be sustainable for much longer, and food price rises are likely in the coming months,” he added.

Watch |<a href="https://www.wionews.com/videos/bid-to-fight-medical-staff-shortage-in-uk-404558">&nbsp;Bid to fight medical staff shortage in UK</a>

The BRC’s warning comes after the toy retailer The Entertainer said prices could rise by 10 per cent over 18 months because of supply chain disruption, labour shortages and higher transport costs.

The indications of rising prices surface&nbsp;in the UK as inflation across the eurozone surged to its highest level in a decade with mounting costs of energy, goods and services hitting household spending.

The statistics body Eurostat has estimated that euro area annual inflation is expected to be 3 per cent in August, up from 2.2 per cent in July.

(With inputs from agencies)

Retail prices in Britain have shot up owing to a national shortage of lorry drivers and disruption to the global supply chain caused by the Covid pandemic, according to the latest data from the British Retail Consortium (BRC).

Retail prices in Britain have shot up owing to a national shortage of lorry drivers and disruption to the global supply chain caused by the Covid pandemic, according to the latest data from the British Retail Consortium (BRC). According to the Guardian, the costs of Brexit-induced red tape is also fuelling inflation as household budgets start to feel the sting. The latest figures from the BRC reveal a 0.4 per cent month-on-month rise in August, driven by a 0.6 per cent rise in non-food prices, which includes a sharp spike in the cost of electrical goods caused by shortages of micro-chips and shipping problems. “There are some modest indications that rising costs are starting to filter through into product prices,” Helen Dickinson, the chief executive of the BRC, which represents hundreds of retail businesses, told the Guardian. “Food retailers are fighting to keep their prices down as far as possible. But mounting pressures – from rising commodity and shipping costs as well as Brexit-related red tape, mean this will not be sustainable for much longer, and food price rises are likely in the coming months,” he added. Watch | Bid to fight medical staff shortage in UK The BRC’s warning comes after the toy retailer The Entertainer said prices could rise by 10 per cent over 18 months because of supply chain disruption, labour shortages and higher transport costs. The indications of rising prices surface in the UK as inflation across the eurozone surged to its highest level in a decade with mounting costs of energy, goods and services hitting household spending. The statistics body Eurostat has estimated that euro area annual inflation is expected to be 3 per cent in August, up from 2.2 per cent in July. (With inputs from agencies)

Shortage of lorry drivers, Covid-induced supply disruptions driving inflation in UK

As hot weather conditions lifted prices of fresh food in South Korea consumer inflation accelerated. The consumer price index (CPI) last month rose 2.6% year-on-year, Statistics Korea data showed on Tuesday, accelerating from a 2.4% increase in June and beating a 2.4% increase tipped in a Reuters survey.

Hot weather conditions lift prices of fresh food in South Korea

As rising prices and the spread of new COVID-19&nbsp;variants&nbsp;increase risks to the US economy, Federal Reserve officials are expected to maintain their easy money policies intended to help American companies and workers survive the pandemic damage.

But as the policy-setting Federal Open Market Committee (FOMC) begins its two-day policy meeting Tuesday, markets and traders will be watching for hints of when it will begin tapering its massive monthly debt purchases.

The bond buying program aimed to ease lending conditions during the crisis, but has come under scrutiny recently as&nbsp;inflation&nbsp;has soared to record levels as businesses reopen and consumers spend the savings built up during the worst months of the pandemic.

And focus also will be on any sign the&nbsp;Fed&nbsp;is rethinking its pledge to keep the benchmark lending rate at zero until the economy achieves maximum employment.

Fed&nbsp;Chair Jerome Powell has repeatedly said the rise in&nbsp;inflation&nbsp;is a temporary effect of the economy getting back to normal, and that the&nbsp;Fed&nbsp;has tools to respond if the surge goes on too long.

But Sam Stovall, chief investment strategist at CFRA Research said the swiftness of the price spike likely has surprised the&nbsp;central bank.

<a href="https://www.wionews.com/world/us-sanctions-cuba-for-repressing-protests-399987">Also read |&nbsp;US sanctions Cuba for repressing protests</a>

"I think they're still saying it's transitory but they're squirming in their seats, feeling a bit anxious that the numbers have come in higher than expected," he said.

However, the&nbsp;Fed&nbsp;is not expected to alter its stimulative policies this week or at any point this year.

Powell has promised to communicate clearly in advance of any policy shift, and analysts believe he may wait to do that at the annual central banking conference in Jackson Hole, Wyoming scheduled for August.

Troubled&nbsp;recovery

Central bankers are convening during an uncertain moment for the world's largest economy.&nbsp;The fast-spreading Delta variant of COVID-19&nbsp;has prompted some parts of the United States to reimpose mask-wearing rules and sparked worries it could undermine the&nbsp;recovery.

At the same time data is showing prices surging across the economy, a consequence of supply chain snarls, shortages of components, unique dynamics like rental car companies moving to rebuild fleets and "base effects," or the comparison to the depressed prices of the year-ago period.

At the&nbsp;Fed's last meeting in June, signs of growing hawkishness appeared, with a majority of FOMC members predicting at least two rate hikes in 2023, and seven expecting one as soon as next year, according to quarterly economic projections. In March, a majority foresaw no rate hikes until after 2023.

Powell has downplayed those predictions, but Daniel Morris, chief market strategist at BNP Paribas, said analysts will be watching to see if the&nbsp;central bank&nbsp;chief's thinking has changed, particularly when he speaks to reporters after the meeting.

"I think there's still that kind of debate, are they more hawkish?" he said. "Any info we can get from Powell during the press conference to try to help settle that debate will be important and useful."

But Stovall said not to expect much in the way of details.

"On the one hand, they will try to assure people that the&nbsp;Fed&nbsp;is ever vigilant and does have the ability to make a difference. But on the other hand (they) will be pretty unspecific on what and when they plan to do things," he said.

A more-pressing decision for the&nbsp;Fed&nbsp;will be what to do about its monthly purchases of at least $80 billion &nbsp;in Treasury debt and at least $40 billion in agency mortgage-backed securities, which were part of the emergency measures taken as the economy collapsed last year.

Morris said the&nbsp;Fed&nbsp;must figure out when to scale them back, and how to do it without causing stock markets to gyrate.

"It's still tricky with them, and Powell is going to be very careful," he said.

As rising prices and the spread of new COVID-19 variants increase risks to the US economy, Federal Reserve officials are expected to maintain their easy money policies intended to help American companies and workers survive the pandemic damage.

As rising prices and the spread of new COVID-19 variants increase risks to the US economy, Federal Reserve officials are expected to maintain their easy money policies intended to help American companies and workers survive the pandemic damage. But as the policy-setting Federal Open Market Committee (FOMC) begins its two-day policy meeting Tuesday, markets and traders will be watching for hints of when it will begin tapering its massive monthly debt purchases. The bond buying program aimed to ease lending conditions during the crisis, but has come under scrutiny recently as inflation has soared to record levels as businesses reopen and consumers spend the savings built up during the worst months of the pandemic. And focus also will be on any sign the Fed is rethinking its pledge to keep the benchmark lending rate at zero until the economy achieves maximum employment. Fed Chair Jerome Powell has repeatedly said the rise in inflation is a temporary effect of the economy getting back to normal, and that the Fed has tools to respond if the surge goes on too long. But Sam Stovall, chief investment strategist at CFRA Research said the swiftness of the price spike likely has surprised the central bank. Also read | US sanctions Cuba for repressing protests "I think they're still saying it's transitory but they're squirming in their seats, feeling a bit anxious that the numbers have come in higher than expected," he said. However, the Fed is not expected to alter its stimulative policies this week or at any point this year. Powell has promised to communicate clearly in advance of any policy shift, and analysts believe he may wait to do that at the annual central banking conference in Jackson Hole, Wyoming scheduled for August. Troubled recovery Central bankers are convening during an uncertain moment for the world's largest economy. The fast-spreading Delta variant of COVID-19 has prompted some parts of the United States to reimpose mask-wearing rules and sparked worries it could undermine the recovery. At the same time data is showing prices surging across the economy, a consequence of supply chain snarls, shortages of components, unique dynamics like rental car companies moving to rebuild fleets and "base effects," or the comparison to the depressed prices of the year-ago period. At the Fed's last meeting in June, signs of growing hawkishness appeared, with a majority of FOMC members predicting at least two rate hikes in 2023, and seven expecting one as soon as next year, according to quarterly economic projections. In March, a majority foresaw no rate hikes until after 2023. Powell has downplayed those predictions, but Daniel Morris, chief market strategist at BNP Paribas, said analysts will be watching to see if the central bank chief's thinking has changed, particularly when he speaks to reporters after the meeting. "I think there's still that kind of debate, are they more hawkish?" he said. "Any info we can get from Powell during the press conference to try to help settle that debate will be important and useful." But Stovall said not to expect much in the way of details. "On the one hand, they will try to assure people that the Fed is ever vigilant and does have the ability to make a difference. But on the other hand (they) will be pretty unspecific on what and when they plan to do things," he said. A more-pressing decision for the Fed will be what to do about its monthly purchases of at least $80 billion in Treasury debt and at least $40 billion in agency mortgage-backed securities, which were part of the emergency measures taken as the economy collapsed last year. Morris said the Fed must figure out when to scale them back, and how to do it without causing stock markets to gyrate. "It's still tricky with them, and Powell is going to be very careful," he said.

Fed to meet as inflation, virus variants complicate US recovery

Japan's core consumer prices rose 0.2% in June from a year earlier to mark the fastest annual pace in over a year, in a sign that the impact of global commodity inflation was gradually broadening.

World Business Watch: Japan's core inflation hits 15-month high on energy costs

The US economy’s rebound from the pandemic is driving the biggest surge in inflation in nearly 13 years, with consumer prices rising in May by 5% from a year ago. The Labor Department said last month’s increase in the consumer-price index was the largest since August 2008, when the reading rose 5.4%.

World Business Watch: US inflation highest in 13 years as prices surge 5% in May

South Korea's consumer inflation has accelerated to a more than nine-year high in May, reinforcing calls for gradual monetary tightening, though the increase was mainly due to a low base effect and rises in oil and agricultural prices.

World Business Watch: South Korea’s inflation hits 9-year high as commodity prices jump

The wholesale price-based inflation shot up to over an eight-year high of 7.39 per cent in March on rising crude oil and metal prices.

Also, the low base of March last year, when the data was computed with a low response rate due to the nationwide lockdown, contributed to a spike in inflation in March 2021.

The WPI inflation was 4.17 per cent in February and 0.42 per cent in March 2020.

This is the third straight month of up-tick seen in the wholesale price index (WPI) based inflation.

"The annual rate of inflation stood at 7.39 per cent (provisional) for March 2021 over March 2020," the Commerce and Industry Ministry said.

Such a high level of WPI was last recorded in October 2012, when inflation was 7.4 per cent.

Inflation in food articles in March was 3.24 per cent as prices of pulses, fruits and paddy hardened.

In vegetables, the rate of price rise was (-) 5.19 per cent, compared to (-) 2.90 per cent in the previous month.

Inflation in pulses was 13.14 per cent in March, while in fruits it was 16.33 per cent.

Inflation in the fuel and power basket was 10.25 per cent in March, against 0.58 per cent in February, mainly on account of rising prices of petrol and diesel.

"The prices of crude oil, petroleum products and basic metal substantially increased in March 2021 as compared to the corresponding month of last year. Also, due to nationwide lockdown, the WPI index for March 2020 was computed with a relatively low response rate," the commerce ministry said while releasing the data.

Retail inflation, as per data released earlier this week, rose to a 4-month high of 5.52 per cent in March.

The RBI in its monetary policy earlier this month kept policy rates unchanged and said it will maintain an accommodative monetary policy stance to support growth and keep inflation at the targeted level.

It projected retail inflation at 5.2 per cent in the June quarter.

The wholesale price-based inflation shot up to over an eight-year high of 7.39 per cent in March on rising crude oil and metal prices. Also, the low base of March last year, when the data was computed with a low response rate due to the nationwide lockdown, contributed to a spike in inflation in March 2021.

The wholesale price-based inflation shot up to over an eight-year high of 7.39 per cent in March on rising crude oil and metal prices. Also, the low base of March last year, when the data was computed with a low response rate due to the nationwide lockdown, contributed to a spike in inflation in March 2021. The WPI inflation was 4.17 per cent in February and 0.42 per cent in March 2020. This is the third straight month of up-tick seen in the wholesale price index (WPI) based inflation. "The annual rate of inflation stood at 7.39 per cent (provisional) for March 2021 over March 2020," the Commerce and Industry Ministry said. Such a high level of WPI was last recorded in October 2012, when inflation was 7.4 per cent. Inflation in food articles in March was 3.24 per cent as prices of pulses, fruits and paddy hardened. In vegetables, the rate of price rise was (-) 5.19 per cent, compared to (-) 2.90 per cent in the previous month. Inflation in pulses was 13.14 per cent in March, while in fruits it was 16.33 per cent. Inflation in the fuel and power basket was 10.25 per cent in March, against 0.58 per cent in February, mainly on account of rising prices of petrol and diesel. "The prices of crude oil, petroleum products and basic metal substantially increased in March 2021 as compared to the corresponding month of last year. Also, due to nationwide lockdown, the WPI index for March 2020 was computed with a relatively low response rate," the commerce ministry said while releasing the data. Retail inflation, as per data released earlier this week, rose to a 4-month high of 5.52 per cent in March. The RBI in its monetary policy earlier this month kept policy rates unchanged and said it will maintain an accommodative monetary policy stance to support growth and keep inflation at the targeted level. It projected retail inflation at 5.2 per cent in the June quarter.

India wholesale price-based inflation spikes to over 8-year high of 7.39% in March

Even before President Joe Biden took office, some of his closest aides were focused on a question that risked derailing his economic agenda: Would his plans for a $1.9 trillion economic rescue package and additional government spending overheat the economy and fuel runaway inflation?

To find the answer, a close circle of advisers now working at the White House and the Treasury Department projected the behaviors of shoppers, employers, stock traders and others if Biden’s plans succeeded. Officials as senior as Janet Yellen, the Treasury secretary, pored over the analyses in video calls and in-person meetings, looking for any hint that Biden’s plans could generate sustained price increases that could hamstring family budgets. It never appeared.

Those efforts convinced Biden’s team that there is little risk of inflation spiraling out of the Federal Reserve’s control — an outcome that Wall Street analysts, a few prominent Republicans and even liberal economists like former Treasury Secretary Lawrence Summers have said could flow from the trillions being pumped into the economy.

Traditional readings of price increases are beginning to turn upward as the recovery accelerates. On Tuesday, the Consumer Price Index rose 0.6%, its fastest monthly increase in more than a decade, while a less volatile index excluding food and energy rose a more muted 0.3%.

But Biden’s advisers believe any price spike is likely to be temporary and not harmful, essentially a one-time event stemming from the unique nature of a pandemic recession that ruptured supply chains and continues to depress activity in key economic sectors like restaurant dining and tourism.

The administration’s view mirrors the posture of top officials at the Fed, including its chairman, Jerome Powell, whose mandate includes maintaining price stability in the economy. Powell has said that the Fed expects any short-term price pops to be temporary, not sustained, and not the type of uptick that would prompt the central bank to raise interest rates rapidly — or anytime soon.

“What we see is relatively modest increases in inflation,” Powell said in March. “But those are not permanent things.”

Armed with their internal data and conclusions, administration officials have begun to push back on warnings that a stimulus-fueled surge in consumer spending could revive a 1970s-style escalation in wages and prices that could cripple the economy in the years to come.

Yet they remain wary of the inflation threat and have devised the next wave of Biden’s spending plans, a $2.3 trillion infrastructure package, to dispense money gradually enough not to stoke further price increases right away. Administration officials also continue to check on real-time measures of prices across the economy, multiple times a day.

“We think the likeliest outlook over the next several months is for inflation to rise modestly,” two officials at Biden’s Council of Economic Advisers, Jared Bernstein and Ernie Tedeschi, wrote Monday in a blog post outlining some of the administration’s thinking. “We will, however, carefully monitor both actual price changes and inflation expectations for any signs of unexpected price pressures that might arise as America leaves the pandemic behind and enters the next economic expansion.”

Some Republicans call that posture dangerous. Sen. Rick Scott of Florida, chairman of his party’s campaign arm for the 2022 midterm elections, has called on Biden and Powell to present plans to fight inflation now.

“The president’s refusal to address this critical issue has a direct negative effect on Floridians and families across our nation, and hurts low- and fixed-income Americans the most,” Scott said in a news release last week. “It’s time for Biden to wake up from his liberal dream and realize that reckless spending has consequences, inflation is real and America’s debt crisis is growing. Inflation is rising and Americans deserve answers from Biden now.”

Economic teams in recent administrations spent little time worrying about inflation, because inflationary pressures have been tame for decades. It has fallen short of the Fed’s average target of 2% for 10 of the last 12 years, topping out at 2.5% in the midst of the longest economic expansion in history.

Shortly before the pandemic recession hit the United States in 2020, President Donald Trump’s economic team wrote that “price inflation remains low and stable” even with unemployment below 4%. As the economy struggled to climb out from the 2008 financial crisis under President Barack Obama, White House aides feared that prices might fall, instead of rise.

“Given the economic crisis, we worried about preventing deflation rather than inflation,” said Austan Goolsbee, a chairman of the Council of Economic Advisers during Obama’s first term.

The conversation has changed given the large amounts of money that the federal government is channeling into the economy, first under Trump and now under Biden. Since the pandemic took hold, Congress has approved more than $5 trillion in spending, including direct checks to individuals.

Biden’s aides are sufficiently worried about the risk of that spending fueling inflation that they shaped his infrastructure proposal, which has yet to be taken up by Congress, to funnel out $2.3 trillion over the course of eight years, which is slower than traditional stimulus.

Even before Summers and others raised economic concerns about Biden’s $1.9 trillion relief bill, officials were wrestling with their own worries about its inflation risks. They had internally concluded, with direction from Biden, that the biggest risk to the economy was going “too small” on the aid package — not spending enough to help vulnerable Americans survive continued stints of joblessness or lost income. But they wanted to know the risks of going “too big.”

They tested whether an uptick in inflation might cause people and financial markets to expect rapid price increases in the years to come, upending decades of what economists call “well-anchored” expectations for prices and potentially creating a situation where higher expectations led to higher inflation. They estimated the odds that the Fed would react to such moves by quickly and steeply raising interest rates, potentially slamming the brakes on growth and causing another recession.

The informal group that initially gathered to research those questions included Bernstein; David Kamin, a deputy director of the National Economic Council; Michael Pyle, Vice President Kamala Harris’ chief economic adviser; and two Treasury officials, Nellie Liang and Ben Harris. More members have joined over time, including Tedeschi.

The group reports regularly to Yellen and other senior officials including Brian Deese, who heads the National Economic Council, and Cecilia Rouse, who leads the Council of Economic Advisers. Its work has informed economic briefings of Biden and Harris.

“The president and the vice president, their job is to deliver good economic outcomes for the American people,” Pyle said in an interview. “Part of what delivering strong economic outcomes to the American people means is ensuring that their team is fully on top of both the tail winds to the U.S. economy but also the risks that are out there. And this is one of them.”

Pyle and his colleagues looked at financial market measures of inflation expectations, including one called the five-year, five-year forward, which currently shows investors expecting lower inflation levels over the next several years than they expected in 2018.

At the same time, officials at the Treasury’s Office of Economic Policy conducted a series of modeling exercises to “stress test” the virus relief package and how it might change those price and expectation measures if put in place. They considered scenarios in which consumers quickly spent their aid money, which included $1,400 checks, and scenarios in which they did not spend much of it at all right away. They talked with large banks about trends in customers’ cash balances and how quickly people were returning to the workforce. Yellen, a former Fed chair, helped adjust the models herself.

The exercises produced a wide range of possibilities for inflation. But they never suggested it would rise so rapidly that the Fed could not easily handle it by adjusting interest rates or other monetary policy tools. They saw no risk of a sharp return to recession — and no reason to pull back from spending proposals that administration officials believe will help the economy heal faster and help historically disadvantaged groups, like Black and Hispanic workers, regain jobs and income.

“We’re going to see some heat in this economy,” Pyle said. “That heat is going to be good and redound to the benefit of wages and labor market conditions overall and particularly for a number of communities that have been at the margins of the labor market for too long.”

If the data proves that forecast wrong, officials say privately, they will be quick to adapt. But they will not say how. If inflation were to accelerate in a sustained and surprising way, some officials suggest, the administration would trust the Fed to step in to contain it.

There is no plan, as of yet, for Biden to consider inflation-fighting actions of his own.

Even before President Joe Biden took office, some of his closest aides were focused on a question that risked derailing his economic agenda: Would his plans for a $1.

Even before President Joe Biden took office, some of his closest aides were focused on a question that risked derailing his economic agenda: Would his plans for a $1.9 trillion economic rescue package and additional government spending overheat the economy and fuel runaway inflation? To find the answer, a close circle of advisers now working at the White House and the Treasury Department projected the behaviors of shoppers, employers, stock traders and others if Biden’s plans succeeded. Officials as senior as Janet Yellen, the Treasury secretary, pored over the analyses in video calls and in-person meetings, looking for any hint that Biden’s plans could generate sustained price increases that could hamstring family budgets. It never appeared. Those efforts convinced Biden’s team that there is little risk of inflation spiraling out of the Federal Reserve’s control — an outcome that Wall Street analysts, a few prominent Republicans and even liberal economists like former Treasury Secretary Lawrence Summers have said could flow from the trillions being pumped into the economy. Traditional readings of price increases are beginning to turn upward as the recovery accelerates. On Tuesday, the Consumer Price Index rose 0.6%, its fastest monthly increase in more than a decade, while a less volatile index excluding food and energy rose a more muted 0.3%. But Biden’s advisers believe any price spike is likely to be temporary and not harmful, essentially a one-time event stemming from the unique nature of a pandemic recession that ruptured supply chains and continues to depress activity in key economic sectors like restaurant dining and tourism. The administration’s view mirrors the posture of top officials at the Fed, including its chairman, Jerome Powell, whose mandate includes maintaining price stability in the economy. Powell has said that the Fed expects any short-term price pops to be temporary, not sustained, and not the type of uptick that would prompt the central bank to raise interest rates rapidly — or anytime soon. “What we see is relatively modest increases in inflation,” Powell said in March. “But those are not permanent things.” Armed with their internal data and conclusions, administration officials have begun to push back on warnings that a stimulus-fueled surge in consumer spending could revive a 1970s-style escalation in wages and prices that could cripple the economy in the years to come. Yet they remain wary of the inflation threat and have devised the next wave of Biden’s spending plans, a $2.3 trillion infrastructure package, to dispense money gradually enough not to stoke further price increases right away. Administration officials also continue to check on real-time measures of prices across the economy, multiple times a day. “We think the likeliest outlook over the next several months is for inflation to rise modestly,” two officials at Biden’s Council of Economic Advisers, Jared Bernstein and Ernie Tedeschi, wrote Monday in a blog post outlining some of the administration’s thinking. “We will, however, carefully monitor both actual price changes and inflation expectations for any signs of unexpected price pressures that might arise as America leaves the pandemic behind and enters the next economic expansion.” Some Republicans call that posture dangerous. Sen. Rick Scott of Florida, chairman of his party’s campaign arm for the 2022 midterm elections, has called on Biden and Powell to present plans to fight inflation now. “The president’s refusal to address this critical issue has a direct negative effect on Floridians and families across our nation, and hurts low- and fixed-income Americans the most,” Scott said in a news release last week. “It’s time for Biden to wake up from his liberal dream and realize that reckless spending has consequences, inflation is real and America’s debt crisis is growing. Inflation is rising and Americans deserve answers from Biden now.” Economic teams in recent administrations spent little time worrying about inflation, because inflationary pressures have been tame for decades. It has fallen short of the Fed’s average target of 2% for 10 of the last 12 years, topping out at 2.5% in the midst of the longest economic expansion in history. Shortly before the pandemic recession hit the United States in 2020, President Donald Trump’s economic team wrote that “price inflation remains low and stable” even with unemployment below 4%. As the economy struggled to climb out from the 2008 financial crisis under President Barack Obama, White House aides feared that prices might fall, instead of rise. “Given the economic crisis, we worried about preventing deflation rather than inflation,” said Austan Goolsbee, a chairman of the Council of Economic Advisers during Obama’s first term. The conversation has changed given the large amounts of money that the federal government is channeling into the economy, first under Trump and now under Biden. Since the pandemic took hold, Congress has approved more than $5 trillion in spending, including direct checks to individuals. Biden’s aides are sufficiently worried about the risk of that spending fueling inflation that they shaped his infrastructure proposal, which has yet to be taken up by Congress, to funnel out $2.3 trillion over the course of eight years, which is slower than traditional stimulus. Even before Summers and others raised economic concerns about Biden’s $1.9 trillion relief bill, officials were wrestling with their own worries about its inflation risks. They had internally concluded, with direction from Biden, that the biggest risk to the economy was going “too small” on the aid package — not spending enough to help vulnerable Americans survive continued stints of joblessness or lost income. But they wanted to know the risks of going “too big.” They tested whether an uptick in inflation might cause people and financial markets to expect rapid price increases in the years to come, upending decades of what economists call “well-anchored” expectations for prices and potentially creating a situation where higher expectations led to higher inflation. They estimated the odds that the Fed would react to such moves by quickly and steeply raising interest rates, potentially slamming the brakes on growth and causing another recession. The informal group that initially gathered to research those questions included Bernstein; David Kamin, a deputy director of the National Economic Council; Michael Pyle, Vice President Kamala Harris’ chief economic adviser; and two Treasury officials, Nellie Liang and Ben Harris. More members have joined over time, including Tedeschi. The group reports regularly to Yellen and other senior officials including Brian Deese, who heads the National Economic Council, and Cecilia Rouse, who leads the Council of Economic Advisers. Its work has informed economic briefings of Biden and Harris. “The president and the vice president, their job is to deliver good economic outcomes for the American people,” Pyle said in an interview. “Part of what delivering strong economic outcomes to the American people means is ensuring that their team is fully on top of both the tail winds to the U.S. economy but also the risks that are out there. And this is one of them.” Pyle and his colleagues looked at financial market measures of inflation expectations, including one called the five-year, five-year forward, which currently shows investors expecting lower inflation levels over the next several years than they expected in 2018. At the same time, officials at the Treasury’s Office of Economic Policy conducted a series of modeling exercises to “stress test” the virus relief package and how it might change those price and expectation measures if put in place. They considered scenarios in which consumers quickly spent their aid money, which included $1,400 checks, and scenarios in which they did not spend much of it at all right away. They talked with large banks about trends in customers’ cash balances and how quickly people were returning to the workforce. Yellen, a former Fed chair, helped adjust the models herself. The exercises produced a wide range of possibilities for inflation. But they never suggested it would rise so rapidly that the Fed could not easily handle it by adjusting interest rates or other monetary policy tools. They saw no risk of a sharp return to recession — and no reason to pull back from spending proposals that administration officials believe will help the economy heal faster and help historically disadvantaged groups, like Black and Hispanic workers, regain jobs and income. “We’re going to see some heat in this economy,” Pyle said. “That heat is going to be good and redound to the benefit of wages and labor market conditions overall and particularly for a number of communities that have been at the margins of the labor market for too long.” If the data proves that forecast wrong, officials say privately, they will be quick to adapt. But they will not say how. If inflation were to accelerate in a sustained and surprising way, some officials suggest, the administration would trust the Fed to step in to contain it. There is no plan, as of yet, for Biden to consider inflation-fighting actions of his own.

The Biden administration is quietly keeping tabs on inflation

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