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

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

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

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

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

UK Finance Minister Rishi Sunak unveils $18 billion cost-of-living bailout package

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

Gravitas: Japan's longstanding pursuit of higher inflation

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

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

Gravitas: Rising inflation sparks protests around the world

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

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

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

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

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

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

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

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

Gravitas: Argentines bring capital to standstill

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Turkey's inflation surges to 20-year high

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

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

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

US Fed makes biggest rate increase since 2000 to fight inflation

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

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

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

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

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

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

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

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

The German government is set to hike its inflation forecast for this year to 6.1 per cent&nbsp;due to the impact of the war in Ukraine, up from 3.3 per cent&nbsp;it had forecast in January, according to government document seen by Reuters on Monday.

Berlin, which is due to present its spring economic forecasts on Wednesday, sees consumer price growth easing to 2.8 per cent&nbsp;in 2023, the document showed.

German annual inflation rose to its highest level in more than 40 years in March as prices of natural gas and oil products soared following Russia's invasion of Ukraine, and gas and electricity bills for German households signing new contracts hit a record high last month.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/they-can-win-if-they-have-the-right-equipment-says-us-defence-secretary-after-meeting-zelensky-473596">With right equipment, Ukraine can win war, says US defence secy Austin after meeting Zelensky</a>

Germany's ruling coalition announced relief measures last month worth roughly 16 billion euro ($17.2 billion) to help consumers cope with soaring energy costs and to reduce dependence on Russian gas.

April inflation data is due to be published on Thursday.

The German government's spring forecasts see consumer spending jumping by 9.7 per cent&nbsp;this year, 0.6 per cent&nbsp;points more than forecast in January, the document showed. In 2023, consumer spending will grow more slowly at a rate of 4.8 per cent.

Berlin meanwhile sees the savings rate shrinking to 10.9 per cent&nbsp;from 15.0 per cent&nbsp;last year.

Watch |&nbsp;Russia-Ukraine conflict: German Chancellor faces criticism for Ukraine stance

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/russia-ukraine-conflict-german-chancellor-faces-criticism-for-ukraine-stance-473431/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

A survey showed last week that one in 10 consumers in Germany were dipping into their savings to shoulder rising costs. Especially younger consumers aged 25 to 34 were more likely to say they were saving less or had taken out loans to help pay their bills.

The sharp rise in energy prices is also hitting companies. An Ifo survey published on Monday showed that nearly half of German companies planned to reduce investments due to rising energy costs.

Also read |&nbsp;<a href="https://www.wionews.com/world/france-germany-sold-weapons-to-russia-after-crimea-conflict-report-473135">France, Germany sold weapons to Russia after Crimea conflict: Report</a>

German business morale unexpectedly rose slightly in April, following a big drop in March, as companies were less pessimistic after the economy appeared resilient following the initial shock of the war in Ukraine.

However, the government's spring forecasts show that the unemployment rate is expected to decline to 5.0 per cent&nbsp;this year from 5.7 per cent&nbsp;in 2021 and to remain stable next year.

The government is also set to cut on Wednesday its growth expectations for Europe's biggest economy for 2022 to 2.2 per cent&nbsp;from 3.6 per cent , a source had told Reuters on Friday. Berlin sees growth picking up slightly to 2.5 per cent in 2023, the source had said.

The German government is set to hike its inflation forecast for this year to 6.1 per cent due to the impact of the war in Ukraine, up from 3.3 per cent it had forecast in January, according to government document seen by Reuters on Monday.

The German government is set to hike its inflation forecast for this year to 6.1 per cent due to the impact of the war in Ukraine, up from 3.3 per cent it had forecast in January, according to government document seen by Reuters on Monday. Berlin, which is due to present its spring economic forecasts on Wednesday, sees consumer price growth easing to 2.8 per cent in 2023, the document showed. German annual inflation rose to its highest level in more than 40 years in March as prices of natural gas and oil products soared following Russia's invasion of Ukraine, and gas and electricity bills for German households signing new contracts hit a record high last month. Also read | With right equipment, Ukraine can win war, says US defence secy Austin after meeting Zelensky Germany's ruling coalition announced relief measures last month worth roughly 16 billion euro ($17.2 billion) to help consumers cope with soaring energy costs and to reduce dependence on Russian gas. April inflation data is due to be published on Thursday. The German government's spring forecasts see consumer spending jumping by 9.7 per cent this year, 0.6 per cent points more than forecast in January, the document showed. In 2023, consumer spending will grow more slowly at a rate of 4.8 per cent. Berlin meanwhile sees the savings rate shrinking to 10.9 per cent from 15.0 per cent last year. Watch | Russia-Ukraine conflict: German Chancellor faces criticism for Ukraine stance A survey showed last week that one in 10 consumers in Germany were dipping into their savings to shoulder rising costs. Especially younger consumers aged 25 to 34 were more likely to say they were saving less or had taken out loans to help pay their bills. The sharp rise in energy prices is also hitting companies. An Ifo survey published on Monday showed that nearly half of German companies planned to reduce investments due to rising energy costs. Also read | France, Germany sold weapons to Russia after Crimea conflict: Report German business morale unexpectedly rose slightly in April, following a big drop in March, as companies were less pessimistic after the economy appeared resilient following the initial shock of the war in Ukraine. However, the government's spring forecasts show that the unemployment rate is expected to decline to 5.0 per cent this year from 5.7 per cent in 2021 and to remain stable next year. The government is also set to cut on Wednesday its growth expectations for Europe's biggest economy for 2022 to 2.2 per cent from 3.6 per cent , a source had told Reuters on Friday. Berlin sees growth picking up slightly to 2.5 per cent in 2023, the source had said.

Germany to hike 2022 inflation forecast to 6.1%: Report

According to the Department of Census and Statistics, Sri Lanka's overall rate of inflation, as measured by the National Consumer Price Index (NCPI) on a year-over-year basis, was 21.5 percent in March 2022.

The National Consumer Price Index for the month of March 2022 confirmed this.

For the month of February, 2022, the headline inflation rate was 17.5 percent.

According to the government, the reported inflation for the month of March 2022 was mostly due to higher prices in both the food and non-food sectors, as compared to March 2021.

As a result, food group inflation jumped to 29.5 percent in March 2022 from 24.7 percent in February 2022, while non-food group inflation increased to 14.5 percent in March 2022 from 11.0 percent in February 2022.

When comparing month-over-month fluctuations, the NCPI grew to 172.7 in March 2022 from 167.8 in February 2022.

In comparison to February 2022, this is an increase of 4.9 index points, or 2.9 percent. This rise reflects a Rs. 1572.34 increase in the "Market Basket" expense value.

Increases in index values of food items of 1.22 percent and non-food items of 1.70 percent, respectively, contributed to the month-on-month change.

The deepening economic crisis has resulted in confrontations at nationwide protests calling for President Gotabaya Rajapaksa to resign due to mismanagement and corruption.

Sri Lanka requested emergency assistance from the International Monetary Fund this week, but was warned that the country's $51 billion external debt was "unsustainable" and needed to be "restructured" before any assistance could be provided.

The government has announced a default on its foreign debt and said precious foreign exchange will be reserved to finance essential food and medicine.

Police clashed with protesters in central Sri Lanka on Tuesday, killing one of them and wounding nearly 30.

At least eight people have also died waiting in long lines for fuel in the past six weeks.

The country's foreign exchange shortage has led to a slowing down of imports, including essentials.

Shops have rationed the quantity of rice, milk powder, sugar, lentils, and tinned fish sold to consumers.

Sri Lanka's economy has collapsed since the onset of the pandemic, with a nosedive in tourism revenue as well as foreign worker remittances.

(With inputs from agencies)

According to the Department of Census and Statistics, Sri Lanka's overall rate of inflation, as measured by the National Consumer Price Index (NCPI) on a year-over-year basis, was 21.

According to the Department of Census and Statistics, Sri Lanka's overall rate of inflation, as measured by the National Consumer Price Index (NCPI) on a year-over-year basis, was 21.5 percent in March 2022. The National Consumer Price Index for the month of March 2022 confirmed this. For the month of February, 2022, the headline inflation rate was 17.5 percent. According to the government, the reported inflation for the month of March 2022 was mostly due to higher prices in both the food and non-food sectors, as compared to March 2021. As a result, food group inflation jumped to 29.5 percent in March 2022 from 24.7 percent in February 2022, while non-food group inflation increased to 14.5 percent in March 2022 from 11.0 percent in February 2022. When comparing month-over-month fluctuations, the NCPI grew to 172.7 in March 2022 from 167.8 in February 2022. In comparison to February 2022, this is an increase of 4.9 index points, or 2.9 percent. This rise reflects a Rs. 1572.34 increase in the "Market Basket" expense value. Increases in index values of food items of 1.22 percent and non-food items of 1.70 percent, respectively, contributed to the month-on-month change. The deepening economic crisis has resulted in confrontations at nationwide protests calling for President Gotabaya Rajapaksa to resign due to mismanagement and corruption. Sri Lanka requested emergency assistance from the International Monetary Fund this week, but was warned that the country's $51 billion external debt was "unsustainable" and needed to be "restructured" before any assistance could be provided. The government has announced a default on its foreign debt and said precious foreign exchange will be reserved to finance essential food and medicine. Police clashed with protesters in central Sri Lanka on Tuesday, killing one of them and wounding nearly 30. At least eight people have also died waiting in long lines for fuel in the past six weeks. The country's foreign exchange shortage has led to a slowing down of imports, including essentials. Shops have rationed the quantity of rice, milk powder, sugar, lentils, and tinned fish sold to consumers. Sri Lanka's economy has collapsed since the onset of the pandemic, with a nosedive in tourism revenue as well as foreign worker remittances. (With inputs from agencies)

Debt-ridden Sri Lanka's inflation soared to a record high

India's wholesale inflation has surged to a 4-month high due to global inflation, and energy prices amid the Ukraine-Russia conflict.

India's wholesale inflation surges to a 4-month high

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