Eurozone inflation could linger for some time - ECB President. European Central Bank (ECB) President Christine Lagarde said on Tuesday that inflation is still too elevated and thus still premature for the central bank to declare victory over rising consumer prices. Inflation in the countries that share the euro currency has entered a phase which could persist for months, Ms Lagarde said, emphasising on a prolonged fight against price growth that must diminish demand and force firms to curtail prices. Most central banks around the world have been raising interest rates aggressively, and while the full impact of this monetary tightening has not yet filtered through to the different economies, policymakers are trying to determine if they are in control of the inflation problem.
US consumer confidence rises in June but recession fears still linger. US consumer confidence rose to the highest level since the start of 2022 amid increased optimism about the labour market and a growing economy. The Conference Board’s Consumer Confidence Index came in at 109.7 in June, up from a reading of 102.5 in May, according to a report published on Tuesday. This survey continued to show that consumers had a far more positive outlook about the present than what could follow than in the subsequent months. However, the board’s expectations index — a measure of consumers’ expectation for their income six months down the line, business and labour conditions — climbed to 79.3 in June from 71.5 in May. A reading under 80 often signals a recession over the next twelve months. The Conference Board noted that this reading was below 80 every month but one since February of 2022, even though the last reading came very close to reversing this trend and eagerly await the July reading.
UK food price inflation slows in June. Britain’s shop price inflation is easing according to the country’s biggest retailers ahead of an important meeting with MPs coming Tuesday over the rocketing cost of groceries. They warned however that food prices continued rising at near record rates. The British Retail Consortium (BRC) said prices in supermarkets and retail chains soared by 8.4percent in June compared with June of last year, down from May’s nine percent annual increase which was the highest rate since the BRC’s data series began in 2005. The news comes ahead of UK Chancellor Jeremy Hunt's meeting with regulatory authorities to evaluate what can be done about the soaring bills that customers are facing.
China's industrial profits plunge. China's industrial profits plummeted in May against a background of anaemic demand and weakening producer prices, official data showed on Wednesday. Industrial profits fell 12.6 percent in May compared to the same month last year, data issued by the National Bureau of Statistics showed. For the first five months of 2023, profits declined by 18.8 percent, which was slightly slower than the almost 21 percent fall seen in the January – April period of the year. These figures underscore the overall weakening of the economy, manifested by sluggish retail sales, weakening exports, and falling property investment. Furthermore, the jobless rate among youths reached a worrying 20.8 percent.
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