With these kinds of price pressures, the standard of living in the UK is falling at the fastest rate for at least six decades. Russians are feeling the pain of Vladimir Putin’s war as prices for commodities like sugar soar 14% in just one week, and his economy is set to undo more than a decade of growth by the end of next year.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
Factories from Australia to Europe are already seeing soaring costs soar even further as Russia’s war in Ukraine and the deluge of sanctions rolled out in response upend commodity markets and trade. While the easing of pandemic-related restrictions helped overall business activity weather the initial shock of the invasion, loss of confidence threatens economic growth in the months ahead.
Workers in Europe’s biggest economies are among the least likely to seek pay rises next year, despite feeling some of the strongest pressures from rising prices. This could ease central bank concerns about the possibility of an inflationary wage spiral.
The inflationary shock that has rocked Russia’s economy has shown few signs of abating, increasingly spreading to commodities from onions to tea after supply disruptions and the ensuing collapse of the ruble the invasion of Ukraine. In a single week, the price of sugar rose by 37.1% in some Russian regions and by almost 14% on average nationwide.
Russia is set to erase 15 years of economic gains by the end of 2023 after its invasion of Ukraine triggered a slew of sanctions and prompted companies to pull out of the country, according to the Institute of InternationalFinance.
Mexico’s central bank confirmed its latest interest rate hike hours after President Andres Manuel Lopez Obrador announced the half-point hike, an unprecedented revelation that raised questions about independence from Banxico.
Where can the world turn quickly for more oil? It turns out that the answer is not OPEC’s traditional powerhouse or Brazil’s promising new offshore fields. Instead, the weight of the oil world falls squarely on the shoulders of a few counties tucked away in isolated corners of the southwestern United States.
The pandemic has pushed millions of older Americans out of the workforce. This should have led to an increase in claims for social security benefits, but it did not. Maybe because they are not retired.
Britain’s Chancellor of the Exchequer Rishi Sunak on Wednesday unleashed a series of tax cuts designed to please his Conservative party, but still left Britons facing the worst pressure on living standards in at least six decades .
Congestion at major Chinese ports of Shenzhen and Hong Kong due to Covid-19 closures has reached its highest level in five months, which could delay goods bound for the United States this summer. There were about 174 ships anchored or loading off South China hubs, the highest number since Oct. 21 when the region dealt with the aftermath of Typhoon Kompasu.
The Chinese government has been hoarding a record amount of cash in the first two months of the year instead of spending it, despite numerous pledges from senior officials to accelerate fiscal stimulus to boost the economy.
With help from Christopher Anstey, Maria Eloisa Capurro, Rachael Dottle, David Goodman, Ann Koh, Joe Mayes, Michael Sasso, Zoe Schneeweiss, Paul Takahashi, Alex Tanzi, Sheela Tobben, Kevin Varley, Alexander Weber and David Wethe.
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