Inflation

Turkish inflation hits two-decade high of 78.6%

European shares rose on Monday on gains in oil and gas companies, while investors awaited eurozone inflation data after a red-hot consumer price report last week cemented the case for an interest rate hike by the European Central Bank (ECB).

President Emmanuel Macron's government will get its first taste of life under France's new political order in the days ahead when it tables a bill to help households cope with runaway inflation without a controlling majority in parliament.

Britain racked up a record shortfall in its current account in early 2022, in part due to the soaring cost of its fuel imports, according to data that officials cautioned could be revised.

Facing the toughest economic conditions in decades, Britain's supermarkets are cutting product ranges, searching for cost savings and patrolling each other's stores to check prices and products as they try to stay one step ahead.

Britain's economy is struggling under the strain of two major risks in the form of double-digit inflation and a possible recession, leaving the Bank of England in a dilemma about how much further it should raise interest rates.

As interest rates rise, consumers and businesses will find it more costly to borrow to invest and spend, and aggregate demand will fall further.

The single-minded focus on keeping food prices low also distracts from other issues, such as the environment and supporting sustainable livelihoods.

U.S. stock index futures edged higher on Monday, setting up Wall Street to extend gains from the previous week after a slide in commodity prices eased worries of prolonged inflation.

Because the cost of living is hitting people very urgently and directly. Food is a much bigger percentage of retail sales than other categories, and the cost is going up rapidly.

British consumers cut back on shopping in May in the face of fast-rising inflation, and a measure of their confidence sank to a record low this month, according to data that underscored the scale of the cost-of-living squeeze.

India's retail inflation is likely to breach the mandated inflation target band of 2-6% for three straight quarters but is showing indications of peaking, Reserve Bank of India deputy governor Michael Patra said on Friday.

Inflation 'shock' punishes Eurozone economy in June: survey

Indonesia's central bank left interest rates at a record low on Thursday, saying it was monitoring risks from rising inflation while downplaying recent pressure on the rupiah currency.

British finance minister Rishi Sunak has toughened his language towards Bank of England Governor Andrew Bailey, a reflection of the political pressure piling on them both as inflation surges towards double digits.

Central banks across Europe raised interest rates on Thursday, some by amounts that shocked markets, and hinted at even higher borrowing costs to come to tame soaring inflation that is eroding savings and squeezing corporate profits.

The Bank of England looks set to override its worries about a sharp slowdown in the British economy and raise interest rates again on Thursday as it tries to tackle an inflation rate on course for double digits.

Argentina's benchmark interest rate is likely to be hiked another 200 basis points next week, analysts polled by Reuters estimated, as the central bank seeks to counter soaring and painful inflation that could top 70% this year.

Food prices: how countries are using the global crisis to gain geopolitical power

A recent report suggests the number of businesses in "critical financial distress" is up by 19% in the first quarter of 2022 compared to 2021.

The poorest 10% of households spend up to three times more of their family budget on food and energy bills as compared to the wealthiest 10%

Construction of new homes in Britain almost ground to a halt last month as builders feared the cost-of-living squeeze and rising interest rates would constrain demand, a closely watched survey showed on Wednesday.

The Palestinian Authority announced on Tuesday it would pay partial salaries to most of its employees after Israel transferred some revenues it collects on the Palestinians' behalf, Palestinian officials said.

European shares fell on Tuesday as investors worried about the squeeze to economic growth from aggressive monetary policy tightening by central banks in a bid to tame rising inflation.

British shoppers facing a surge in inflation cut their spending in May by the most since the country was in a coronavirus lockdown in early 2021, according to a survey published on Tuesday.

The ECB is lagging behind the central banks in Britain and the United States, which have moved aggressively to try to stamp out inflation.

As a challenge to economic theory, workers are facing cuts in their real pay with seemingly no prospect of wages catching up with headline inflation. This is despite the fact that unemployment is low.

Stocks steadied in Asia on Wednesday as Shanghai emerged blinking from two months of lockdown and a dip in oil prices dangled the prospect of a respite from rising energy prices, but nerves about inflation kept investors and bond markets on edge.

Inflation in New Zealand, 6.9% in the year to the first quarter, is at a three-decade high. However, wage inflation remains low.

British inflation surged to its highest annual rate since 1982 as energy bills soared, while Canadian inflation rose to 6.8% last month, largely driven by rising food and shelter prices.