world economic news

World Economic News – Friday 26/08/2022



US President Joe Biden’s student loan forgiveness plan could cost about $24 billion per year, White House press secretary Karine Jean-Pierre told CNN on Thursday (Aug. 25). Biden announced the plan on Wednesday (Aug. 23), stating that Americans earning less than $125,000 a year could see $20,000 in student loan debt written off if they received Pell Grants for low-income families and $10,000 if they did not.


British energy bills will rise 80% to an average of 3,549 pounds ($4,188) a year starting from October 1, the country’s regulator, the Office of Gas and Electricity Markets (Ofgem), announced on Friday. Ofgem CEO Jonathan Brearley said the rise would have a “massive impact” on households across Britain, and added that it’s clear the new prime minister will need to act further to tackle the impact of the price rises that are coming in October and next year.”


The cost of living in Tokyo rose at a quicker-than-expected pace in August. The customer price index (CPI) was up by 2.9% compared to the same month in 2021, according to a report by the Statistics Bureau on Friday. Projections put inflation at 2.5% to 2.7%.


German consumer confidence dropped in August and is expected to slump by further 5.6 points month on month in September to come in at negative 36.5 points, according to GfK. “The sharp increase in the propensity to save this month means that the consumer sentiment is continuing its steep descent. It has once again hit a new record low,” GfK Consumer Expert Rolf Buerkl commented.