Cairo: Spain’s industrial prices rose 43.2 percent year-on-year, up from 43.6 percent in May; Japan’s central bank agreed on the need for lower rates; South Korea’s economy shows signs of unexpectedly high rate hikes, while England’s central bank is expected to increase its rates by a modest 25 bps on August 4.
Spanish industrial prices up 43.2 percent
Spain’s 12-month industrial price growth slowed for the third straight month in June as energy inflation slowed again, the National Statistics Institute said on Tuesday.
Spain’s industrial prices rose 43.2 percent in the 12 months to June, down slightly from 43.6 percent in the May period. INE reported that overall industrial prices rose 1.9 percent in June.
Inflation hit an all-time record of 47 per cent in the 12-month period of industrial output in the March period.
BOJ agrees on the need for lower rates
Policymakers at the Bank of Japan see wage increases as the key to permanently achieving their 2 percent inflation target, minutes of the June meeting showed, keeping interest rates very low despite rising signs of price pressure. Kept. Underlined the Bank’s resolve to keep
According to minutes released on Tuesday, some of the nine-member board saw a rise in prices and a change in long-standing public perception that inflation and wages will not rise much in the future.
But members agreed that the economy needed massive monetary support to keep up with rising commodity prices and supply disruptions caused by China’s COVID-19 lockdown.
“The Board agreed that the uncertainty surrounding Japan’s economy was too high,” the minutes showed.
South Korea’s economy boomed unexpectedly
South Korean economic growth picked up unexpectedly in the second quarter as strong consumption offset poor exports when COVID-19 restrictions were eased, leading to further hikes in central bank interest rates.
GDP for the April-June period grew 0.7 per cent on a quarter-on-quarter basis, faster than growth of 0.6 per cent in the first quarter and 0.4 per cent in a Reuters survey, according to Bank of Korea estimates released on Tuesday. was more than growth. ,
Economists said the upbeat data allowed the central bank to continue tougher policy in the coming months, which hit an unprecedented 50 basis-point growth this month.
Chun Kyu-yeon, an economist at Hana Financial Investments, said: “The economy will inevitably slow down due to prolonged inflation and cold exports, but today’s solid reading is a nice boost for the central bank, keeping inflation at bay for now. Keeping it at bay.” Considering this as a major risk. ,
Bank of England will increase rates by 25 basis points on August 4
The Bank of England will shy away from a major increase in interest rates in August and instead stick to a modest 25 basis point increase, but it is a very close call, a Reuters poll of economists found.
The BoE is battling four decades of high inflation, driven primarily by global pressures related to supply-chain disruptions and higher energy prices. This has become a cost of living crisis, which is now increasing the likelihood of a recession.
Britain’s central bank was the first of its major peers to begin raising rates in the current cycle, raising the bank rate five times since the pandemic in December to 0.10 per cent, from 1.25 per cent currently.
(with input from Reuters)