Category Archives: Inflation

Brexit changes will add to soaring costs in 2022, warn UK manufacturers

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Make UK says two-thirds of companies fear customs delays and red tape from new rules will further hamper supply chains

Manufacturers have warned that Brexit will add to soaring costs facing British industry, amid concerns that customs delays and red tape will rank among the biggest challenges for firms this year.

Make UK, the industry body representing 20,000 manufacturing firms of all sizes from across the country, said that while optimism among its members had grown, it was being undermined by the after-effects of the UK’s departure from the EU.

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Erdoğan gambles on economy amid protests and rocketing inflation

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Analysis: push for interest rate cuts has divided party and left Turkish president in precarious position, say experts

Turkey’s president is gambling that a strong economic recovery from the pandemic will stay on track despite rocketing inflation that has hit living standards and sparked protests in major cities.

The $750bn economy is on course to expand by 9% this year following a return of tourism and a surge in demand for exports that has pushed factory output to pre-pandemic levels.

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New Zealand interest rate hike raises pressure on central banks over inflation

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RBNZ says homeowners must be ‘incredibly wary’ of rising costs, as focus shifts to policymakers in US, UK and Europe

New Zealand’s central bank has lifted interest rates for the second time in as many months to 0.75%, with many forecasters expecting borrowing costs to rise to at least 2% by next year and possibly higher.

In a warning signal for central banks around the world as they struggle to contain inflationary pressures, the Reserve Bank of New Zealand (RBNZ) raised the official cash rate by 25 basis points to 0.75% as expected in its final policy meeting of the year on Wednesday.

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Dirty dollars: how tattered US notes became the latest street hustle in Zimbabwe

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In country hit by hyperinflation, a shortage of dollars means those struggling to survive can make a profit dealing torn notes

In time-honoured street hawker tradition, Kaitano Kasani is using charm and persuasion to get people to sell him their tattered US banknotes.

Kasani, 42, bellows through a megaphone as he walks through Glen Norah, a township in Harare, in the sweltering November heat.

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ECB keeps interest rates on hold, warns of ‘transitory’ higher inflation – business live

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The global semiconductor shortage and ongoing disruption to supply chains continue to knock carmakers’ profits.

Volkswagen and Stellantis both suffered financial hits in the third quarter the year, as a result of the global shortage of computer chips, which has prevented the firms from producing as many vehicles as they had originally planned.

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UK food worker shortages push prices up and risk Christmas turkey supplies

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Dearth of delivery drivers, abattoir staff and fruit pickers caused by Covid and Brexit are fuelling wage rises with 5% hike in prices forecast

Food prices could rise by about 5% by the autumn – and turkeys and pigs in blankets could be in short supply this Christmas – as shortages of delivery drivers, abattoir staff and other workers drive up pay and other costs.

Industry insiders say that pay for lorry drivers and other supply chain workers, including abbatoir workers, plus vegetable and fruit pickers and packers have all risen because of difficulties in finding sufficient staff.

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Recipe for inflation: how Brexit and Covid made tinned tomatoes a lot dearer

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Combine the pandemic with rising raw material costs, stir in a labour shortage, a twist of Brexit, add a pinch of poor weather and voila …

Tinned tomatoes are a taken-for-granted store cupboard staple, relied upon by Britons to whip up home cooked favourites such as spaghetti bolognese. But the price could soon make you take notice, amid warnings of higher shopping bills, set against a backdrop of soaring global food prices.

From the packaging to the transportation and the energy used in manufacturing, nearly all aspects of the production of this popular ingredient now cost more. The crushed tomatoes alone are 30% dearer than a year ago, at €0.48 per kilo. The same pressures are driving the prices of many foods higher, meaning Britons will probably face bigger bills for groceries or meals out this autumn.

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A year of Covid crisis: a glimmer of economic hope at the end of the tunnel

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Twelve months after the pandemic struck the Guardian’s economic tracker reveals real risk of lasting damage

When Boris Johnson announced the first stay-at-home order, effectively shutting down whole sections of the economy, it was hoped the tide could be turned within 12 weeks. As many months later, lockdown measures are being relaxed for a third time and Britain still faces a lengthy road to recovery from the worst recession for 300 years.

As restrictions ease, the chief economist at the Bank of England, Andy Haldane, warned that despite the reopening of the economy, the risk of a “jobs equivalent of long Covid” remains for workers across the country.

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Global stock markets drop as inflation fears prompt sell-off

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UK FTSE was down 2.5%, its biggest one-day fall in percentage terms since the end of October

Global stock markets ended February deep in the red, as fears of higher inflation prompted a sell-off in government bonds and spread anxiety across financial markets.

The UK’s FTSE 100 index fell 168 points to 6,483, a 2.5% drop – the biggest one-day fall in percentage terms since the end of October.

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What will coronavirus mean for the British economy?

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As the UK faces what may be its worst ever recession, we begin a monthly series exploring the financial shock to business and living standards

One month after a national lockdown was declared in an attempt to limit the spread of Covid-19, it is clear that Britain is heading for the deepest recession in living memory.

Boris Johnson’s government launched unprecedented restrictions on 23 March, telling the British public that they must stay at home and bringing life as the nation knew it to an abrupt halt.

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Venezuela: hyperinflation leads to new banknotes for second time in a year

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Banknotes of 10,000, 20,000 and 50,000 bolívar denominations will begin circulating on Thursday, the central bank said

Venezuela is releasing new banknotes for the second time in less than a year, the central bank said on Wednesday, after hyperinflation eroded the effects of an August 2018 monetary overhaul meant to improve availability of cash.

Venezuela’s president, Nicolás Maduro, last year cut five zeroes off the currency and prices. The move was supposed to ease shortages of cash that pushed most of the economy toward debit and credit card operations and put heavy strain on digital commerce platforms.

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