February 14, 2023
United States:
US Inflation Stays Elevated, Adding Pressure for More Fed Hikes
US consumer prices rose briskly at the start of the year, a sign of persistent inflationary pressures that could push the Federal Reserve to raise interest rates even higher than previously expected.
The overall consumer price index climbed 0.5% in January, the most in three months and bolstered by energy and shelter costs, according to data out Tuesday from the Bureau of Labor Statistics. The measure was up 6.4% from a year earlier.
Europe:
Hungary Leads East EU Economic Slide Amid War in Ukraine
Soaring inflation, higher interest rates and supply-chain snarls spurred by the war in Ukraine pushed most of the European Union’s biggest eastern economies into contraction in the fourth quarter.
Poland’s economy shrank 2.4% from the previous three months — much worse than the 0.5% forecast in a Bloomberg survey — for its second non-consecutive decline last year. It economy grew 2% on an annual basis.
Asia:
China’s Economic Bonanza From Record Trade Surplus Is Fading
China may lose a key support for economic growth and the yuan this year as residents flock overseas again and exports continue to plummet because of a global slowdown.
After hitting a 14-year high of almost $420 billion last year, the surplus on the current account — the broadest measure of trade in goods and services — is expected to narrow sharply this year. Economists surveyed by Bloomberg predict it will weaken to 1.4% of gross domestic product this year, down from 2.3% in 2022.
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