world economic news

Economic News Daily – Wednesday 13/04/2022

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USA

Inflation hit 8.5% in the United States in March, the fastest 12-month pace since 1981, driven by skyrocketing energy and food costs, supply constraints and strong consumer demand. Energy prices increased 32%, namely gasoline (48%) and fuel oil (70.1%). Food prices jumped 8.8%, the most since May 1981.

UK 

Annual inflation rate in the UK increased to 7% last month, the highest since March of 1992, from 6.2% in February, the Office for National Statistics reported on Wednesday. Figures came above forecasts of 6.7%, with the largest upward pressure coming from motor fuels and petrol costs. On a monthly basis, consumer prices increased 1.1% in March.

CHINA

China’s grew 14.7% on a yearly basis in March, faster than the expected growth of 13.0%, reports said citing data from the General Administration of Customs on Wednesday. Imports fell 0.1% from the last year, falling below analysts’ projections. The trade surplus came in at $47.38 billion in March.

NEW ZEALAND

The Reserve Bank of New Zealand (RBNZ) raised interest rates by a hefty 50 basis points to 1.50% on Wednesday, its fourth hike in a row. The board mentioned that annual CPI is expected to peak around 7% in H1 2022 and the ‘path of least regret’ is to increase the OCR by more now, rather than later, to head off rising inflation expectations.