world economic news

Economic News Daily – Monday 20/06/2022

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CHINA

The People’s Bank of China (PBoC) announced on Monday that IT maintained its benchmark loan prime rates unchanged. After a reduction in May, the five-year loan prime rate, or LPR, the benchmark for mortgage rates, was retained at 4.45% despite the economic challenges. The LPR is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting.

GERMANY

The producer prices across Germany rose to a fresh record high in May driven by energy prices, data from Destatis showed on Monday. Producer prices logged a double-digit growth of 33.6%, compared to the same month a year ago to surpass market expectations. On a monthly basis, the producer prices index expanded by 1.6%.

US

President of the Cleveland Federal Reserve Bank Loretta Mester told CBS on Sunday she expects the US central bank to reach its 2% inflation target in several years. “It isn’t going to be immediate that we see 2% inflation. It will take a couple of years but it will be moving down,” Mester she said. Inflation in the world’s largest economy hit 8.6% in May, marking the nation’s highest reading since that of December 1981.

ESTONIA

Estonia’s producer price index increased by 33.7% year-over-year in May, following a 31.8% rise in the previous month. “The index was primarily influenced by price increases in electricity and heat energy production and in the manufacture of wood and wood products, food products and fabricated metal products,” Germo Valgenberg, leading analyst at Statistics Estonia, said. On a monthly basis, producer prices rose 3.1%