Annual inflation across some of the world’s largest economies increased to 4.3 per cent in August, driven by rising energy and food prices, according to the Organisation of Economic Co-operation and Development.
The rise in prices in August, up 0.1 per cent from July, continued an upward trend that began in December 2020, with energy prices in the 37-member economic bloc rising at a faster pace of 18 per cent, after the 17.4 per cent rate recorded in July.
“Food price inflation also increased sharply to 3.6 per cent, compared with 3.1 per cent in July,” the OECD said.
“Excluding food and energy, OECD annual inflation remained stable at 3.1 per cent for the third consecutive month.”
While central banks and governments across the globe have pumped $25 trillion into their economies to cushion the effects of the Covid-19 pandemic, the flow of money has raised fears about rising inflation, with easing coronavirus restrictions, staff shortages and supply chain challenges worsening the outlook.
Concerns around stagflation — a situation in which the inflation rate is high and economic growth stalls - are also ramping up amid higher energy costs, said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
“With price increases slamming economies from all directions, concerns about stagflation seem to have turned from niggling worries to an anxiety attack. As many businesses grapple with labour shortages and an continuing supply chain crisis amid higher demand for goods, there are concerns that higher costs will drag on the overall economic recovery,” Ms Streeter said.
“Central bankers could be forgiven for experiencing a big dose of vertigo as they balance on the tricky tightrope of trying to keep a lid on inflation, while attempting to keep monetary stimulus loose enough not to choke off growth.”
In the euro area, annual inflation picked up strongly to 3 per cent in August 2021, from 2.2 per cent in July, but remained lower than in the OECD area as a whole, particularly compared with the US, where annual inflation stood at 5.3 per cent for the same period, slightly down from 5.4 per cent in July.
“Excluding food and energy, euro area inflation jumped to 1.6 per cent compared with 0.7 per cent in July largely reflecting increase in the price of non-energy industrial goods, in particular the prices of clothing and footwear,” the OECD said.
However, inflation hit a 13-year high in the economic bloc in September, according to Eurostat, rising at its fastest pace since 2008 to 3.4 per cent as energy costs skyrocketed.
Higher energy prices were the main driver for the surge, with the effect of production and shipping bottlenecks also playing a part as the price of durable goods rose 2.3 per cent from August.
Outside the eurozone, the CPI, including owner occupiers' housing costs, in the UK rose by 3 per cent in the 12 months to August from 2.1 per cent in July.
France’s inflation rate rose to 1.9 per cent in August from 1.2 per cent in July, while in Canada inflation rose to 4.1 per cent from 3.7 per cent in July.
Meanwhile, annual inflation in the G20 area decreased slightly to 4.5 per cent in August from 4.6 per cent in July.
If you go...
Etihad flies daily from Abu Dhabi to Zurich, with fares starting from Dh2,807 return. Frequent high speed trains between Zurich and Vienna make stops at St. Anton.
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
The specs
Engine: 2.0-litre 4-cyl
Power: 153hp at 6,000rpm
Torque: 200Nm at 4,000rpm
Transmission: 6-speed auto
Price: Dh99,000
On sale: now
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
More from Rashmee Roshan Lall
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
57%20Seconds
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Rusty%20Cundieff%0D%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EJosh%20Hutcherson%2C%20Morgan%20Freeman%2C%20Greg%20Germann%2C%20Lovie%20Simone%0D%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%0D%3Cbr%3E%0D%3Cbr%3E%3C%2Fp%3E%0A
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
