Capitals: agencies
Food prices rose to a new record high in the UK, as consumers continue to feel the pinch of the cost of living crunch as prices for takeaway meals and coffee soar.
According to The Independent, store inflation eased slightly from April levels, as spring discounts at fashion and furniture stores slowed retail inflation more broadly, but food prices rose to 15.7%, the highest on record, over the same period in previous years. .
According to the report, fresh food prices rose 17.8 percent year-on-year for the month of April, while prices of canned goods and other cupboard items rose 12.9 percent.
Helen Dickinson, chief executive of the British Retail Confederation (BRC), said: “Shop price inflation eased slightly in April due to large spring sales on clothing, footwear and furniture. However, food prices remained elevated due to cost pressures in supply chains.”
She explained that the impact of the increase in production and packaging costs appeared in an increase in the prices of ready-made meals, which became more expensive, and the prices of coffee also increased due to the high cost of coffee beans, in addition to the export of producing countries in smaller quantities. Meanwhile, the price of butter and vegetable oils began to decline. decline"
The Independent said that food price inflation this year appeared in the rise in the prices of basic foodstuffs such as cheese, oats and white bread.
For example, the newspaper monitored an increase in some goods in the supermarket, as the price of cheddar cheese, which accounts for nearly half of cheese sales in the United Kingdom, increased by 28.3% through supermarkets.
On the other hand, in a surprising move, the Australian Central Bank decided to raise interest rates to the highest level in 11 years, contrary to expectations to keep them steady after recent inflation figures showed signs of slowing.
According to Sky News, the Reserve Bank of Australia announced a 25 basis point hike in its key interest rate to 3.85 percent, missing the error of many economists who expected no change.
Figures released in late April showed that the consumer price index (inflation) had slowed to 7 percent, from 7.8 percent in December, but still above the bank's target of between 2 and 3 percent.
Reserve Bank of Australia Governor Philip Lowe said inflation was "past its peak" but was still very high.
"Given the importance of bringing inflation back to target within a reasonable time frame, the Board considered that a further increase in interest rates today is warranted," he said.
Lowe warned that it could take "two years" before inflation returns to an acceptable level, and indicated that further rate hikes could be on the horizon.
"There may be a need for further tightening of monetary policy to ensure that inflation returns to the target in a reasonable time frame, but that will depend on how the economy and inflation develop," he said.
The Reserve Bank held interest rates steady at its last meeting in April, ending a streak of 10 straight hikes in a row.
Lowe said this allowed the bank to assess the economy before making a decision on the latest rally.
Australians are now paying an extra A$250 ($169) each week to meet payments on an average mortgage of about A$600,000 ($407,000).
Like the rest of the world trying to rein in inflation, Australia faces a delicate balancing act of lowering prices without stifling economic growth and triggering a recession.
Central banks around the world continue to tighten monetary policy in the face of skyrocketing food and energy prices, exacerbated by the war in Ukraine.