ECB pledges interest rate rise in July as inflation bites
12 June 2022 | 7:12 am
The European Central Bank has left the interest rate unchanged but indicated that it will rise in July — the first hike since 2011. It is also halting a program which ultimately amounts to printing electronic money.
As commodity prices spike because of the war in Ukraine, South Africa's finance minister warns that the country might face fallout from inflation of food and oil prices, but that the conflict could also lead to a boost in the country's export revenue. Plus, there are warnings of a humanitarian crisis in Burkina Faso's northern city of Djibo. Hundreds of thousands of people there are struggling to get food or water as jihadists besiege the city.
Ethnic clashes leave at least 17 people dead in Sudan's Darfur region. Observers blame. Arab militias for launching attacks to settle land and livestock disputes. The cost of living for Ghanaians is at its highest in almost 6 years. The increasing price of basic goods such as water and oil leave families and businesses struggling. And Congolese authorities vow to clamp down on shoddy construction after a tragic accident in Kinshasa. Experts blame corruption and poor urban planning.
Nigeria to hold second interest rate meeting of 2022 on the back of an upsurge in inflation and fragile growth. Persistent double-digit inflation could pile pressure on the central bank to reconsider its dovish stance on rates.
Inflation in France is set to surpass 4 percent in March, according to the latest estimates from the national statistics institute Insee. The pace of price rises has already hit the highest level since 2008. The rising cost of living has become a central issue in the French presidential election campaign, with promises from candidates to cut taxes and raise wages to tackle it.
The price of staple foods like rice, onions and oil is rising in Senegal - leaving Muslim families who are celebrating Ramadan relying on charity.
Consumer prices in the US surged by 8.5 percent in March, the fastest pace since 1981. The inflation spike was fuelled by a 32 percent jump in energy costs, linked to Russia's war in Ukraine. Many American consumers are struggling to keep up with the price rises. Also in the show: Emmanuel Macron appears to waver on his pledge to raise France's retirement age to 65, and Sri Lanka enters default as its economic crisis deepens.
61% of small business owners in the US say that the current state of the economy is making it difficult for them to stay open. This is according to a survey of over 500 small business owners commissioned by Clarify Capital.
The last time prices rose faster was for West Germany in 1981. More than any other factor, increasing energy prices, exacerbated by Russia's invasion of Ukraine, are fueling inflation.
Amazon records its first quarterly loss since 2015 as online sales drop, while Apple warns of an $8 billion hit from the war in Ukraine and Covid-19 lockdowns in China. Also, French growth hits zero as consumer spending falls, and the IMF warns of dangers for the economies of sub-Saharan Africa.
The Fed raises interest rates by the most in over 20 years The Federal Reserve raised interest rates by half a percentage point Wednesday, in an effort to cool off demand and lower inflation. Consumer prices have been rising at the fastest pace in 40 years.
The central bank has announced a 0.5% interest rate hike — its highest increase in more than 20 years. The US move comes as a number of other countries cut lending rates to deal with rising prices.
After a sell-off on Wall Street, global investors are grappling with price increases and rising borrowing costs. Inflation is particularly brutal in Turkey, and the Greek government unveils a program to protect households from soaring energy prices.
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