Overseas Headlines – June 23, 2021

United States:

Inflation on the Menu as U.S. Restaurants Pass On Soaring Costs

“U.S. restaurants, faced with higher food and labor costs, are raising menu prices at a much faster pace than historical rates, insistent on preserving profits after an arduous year. From local restaurants to national chains like Chipotle Mexican Grill Inc., owners have boosted prices by as much as 5% in the past few weeks alone. Even at fast-food companies that were locked in price wars just a couple of years ago to win over cost-conscious consumers, increases aren’t taboo anymore.”



Europe’s Economy Is Booming as Nations Cast Off Crisis Shackles

“Europe’s private-sector economy is booming, accompanied by mounting inflation pressures as coronavirus restrictions loosen across the region. Surveys of purchasing managers by IHS Markit showed euro-area activity growing at the fastest pace in 15 years, with companies struggling to keep up with demand and prices surging. The equivalent U.K. index was only slightly below May’s record, with firms hiring staff quicker than at any time since it began collecting data in 1998.”



Japan Factory Activity Expands a Fifth Month While Services Shrink

“Japan’s manufacturing activity expanded for a fifth month in June while services continued to shrink amid measures to contain the coronavirus. The au Jibun Bank Japan’s purchasing managers index for activity in the manufacturing sector fell 1.5 point to 51.5, while its measure of service sector activity gained 0.7 point to 47.2. Numbers above 50 indicate an expansion while those below signal a contraction.”



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