world economic news

Economic News Daily – Wednesday 22/06/2022

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UK

The annual inflation rate in the UK accelerated to 9.1% in May from 9% in the previous month, the highest since 1982 and in line with market expectations. Cost accelerated for housing and utilities (19.4% vs 19.2%); transport (13.8% vs 13.5%); food & non-alcoholic beverages (8.6% vs 6.7%); furniture & household goods (10.5% vs 10.3%); and alcoholic beverages & tobacco (5% vs 4.4%).

EUROZONE

Eurozone’s consumer confidence indicator stood at negative 23.6 points in June, according to a preliminary report by the European Commission. The indicator for the EU stood at negative 24 points, falling further below its long-term average. Both indices dropped close to their lowest record of April 2020.

AUSTRALIA

The Westpac-Melbourne Institute Leading Economic Index in Australia declined by 0.06% yoy in May, due to the deterioration in consumer sentiment, data released by Westpac showed on Wednesday. Meanwhile, the six-month annualized growth rate, which indicates the likely pace of economic activity relative to trend three to nine months into the future, slowed to 0.58% in May from 1.09% in April.

CANADA

May’s record inflation figures weren’t unexpected, Senior Deputy Governor of the Bank of Canada, Carolyn Rogers, said on Wednesday. She estimated that the inflation would start to go down soon and also argued that the central bank needs to raise its key interest rates further. Canada’s annual inflation quickened to 7.7% last month, the highest since January 1983 and above market expectations of 7.4%.