World Economic News – 05/10/2022



Additional companies in Germany plan to increase their prices this month amid prolonged inflation pressures, according to the latest report from the Ifo Institute for Economic Research. Price expectations rose to 53.5 points last month from August, meaning more than half of the surveyed companies confirmed their intention to raise prices. “Unfortunately, this probably means the wave of inflation isn’t about to subside” Ifo forecast head Timo Wollmershauser stated.


The Reserve Bank of New Zealand’s (RBNZ) policy committee raised its official cash rate by 50 basis points to 3.5%, the fifth such outsized move and the eighth hike in 12 months. The central bank said that core consumer price inflation was too high, with minutes of the meeting showing the committee even debated whether to hike by 75 bps but decided on a half-point move.


European Central Bank President Christine Lagarde at an open dialogue organized by the Central Bank of Cyprus on Tuesday (Oct 4) said that inflation in the EU remains “undesirably high” while stressing that “it’s hard” to say whether it has peaked.


The annual inflation rate in Turkey rose for the 16th consecutive month to 83.5% in September, the Turkish Statistical Institute said on Oct 3.  It was the highest rate since July of 1998. Prices surged for housing and utilities (84.7% vs 71.8% in August) and transportation (117.7% vs 116.9%), amid an extended rise in prices of energy (133% vs 121.7%).


Ireland’s services activity expanded at the weakest pace in the current 19-month sequence of growth, survey data from S&P Global showed on Wednesday. The AIB Ireland services Purchasing Managers’ Index fell to 54.1 in September from 54.7 in August, as inflationary pressures on demand undermined the outlook.


Retail sales rose 13.0% year-on-year in August, after a 13.9% growth in July, data from the Department of Statistics showed on Wednesday. Excluding motor vehicles, retail sales grew 16.2% yearly in August, after an 18.4% gain in the preceding month.