South Africa’s growth in 2022 Q2 depends on the severity of electricity outages, the effects of flood damage, and weakening consumer confidence. The price level is rising.—howwemadeitinafrica.com
Category: Economics in the News
Fed Officials Worried About Inflation Becoming ‘Entrenched’
Many Fed officials are raising concerns that longer-run inflation expectations could be beginning to drift up to levels inconsistent with the Fed's goals. The officials stressed that clear and effective communications, along with higher rates are essential in restoring price stability.—axios.com
Consumers changing eating, shopping habits as inflation pushes up prices
Stormy Johnson is making changes to her grocery list. Her family used to eat a lot of chicken, but it’s gotten so expensive that now she’s substituting hamburger, which experienced a smaller price rise.—cnbc.com
USPS Increases Stamp Prices
The United States Postal Service (USPS) is raising the price of a first-class stamp. USPS pointed to increased operating expenses as a reason for its rate hike and falling mail volume.—newsnationnow.com
Canada is Banning Single-Use Plastics, Including Grocery Bags and Straws
Canada is banning the manufacture and import of single-use plastics by the end of the year. The ban includes items like checkout bags, cutlery, and straws. Single-use plastics make up most of the plastic waste found on Canadian shorelines.—cnbc.com
Russia’s 2022 Inflation Seen at 14.5%
Russia's central bank will continue cutting rates this year as inflation will be lower than previously thought. The average forecast among 15 analysts polled in late June suggests the Russian economy is on track to shrink by 7.1% this year —reuters.com
Vietnam Targets 7% GDP Growth This Year
Vietnam is aiming for economic growth of 7% this year compared to 2.58% last year, Nguyen Chi Dung, the country's planning and investment minister said. Dung also reported that Vietnam's budget was in surplus.—asia.nikkei.com
Interest Rates Should be Closer to 10%
Estimates of the Taylor rule suggest a federal funds rate of around 7%, compared with 1.75% at present.—poundsterlinglive.com Some Data: In May 2022, the U.S. output gap is minus 1.8% and the inflation rate is 8.6%.
The $560 Billion Investment in America’s Transportation Infrastructure
A bipartisan infrastructure bill guarantees $65 billion to expand broadband Internet service, and $65 billion to upgrade the nation's power grid. The Department of Transportation will receive more than $560 billion to improve tunnels, bridges, roads, mass transit, ports, and airports. —cbsnews.com
Bank of Japan Maintains Ultra-Low Rates
The Bank of Japan is maintaining its -0.1% interest rate target, while European central banks and the U.S. Federal Reserve are raising interest rates. Growing monetary policy divergence between Japan and the rest of the world has pushed the yen to 24-year lows.—cnbc.com