<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" > <channel> <title>Inflation Archives - Sweet Melodies FM</title> <atom:link href="https://www.sweetmelodiesfm.com/tag/inflation/feed/" rel="self" type="application/rss+xml" /> <link>https://www.sweetmelodiesfm.com/tag/inflation/</link> <description>Keeping You Sanctified Morning, Noon and Night!</description> <lastBuildDate>Wed, 18 Oct 2023 09:28:15 +0000</lastBuildDate> <language>en-US</language> <sy:updatePeriod> hourly </sy:updatePeriod> <sy:updateFrequency> 1 </sy:updateFrequency> <generator>https://wordpress.org/?v=6.7.2</generator> <image> <url>https://i0.wp.com/www.sweetmelodiesfm.com/wp-content/uploads/2022/07/cropped-Sweet-Melodies-FM_text_favicon.png?fit=32%2C32&ssl=1</url> <title>Inflation Archives - Sweet Melodies FM</title> <link>https://www.sweetmelodiesfm.com/tag/inflation/</link> <width>32</width> <height>32</height> </image> <item> <title>According to Akufo-Addo, inflation would fall to 26.7% by December and 15% by the end of 2024.</title> <link>https://www.sweetmelodiesfm.com/according-to-akufo-addo-inflation-would-fall-to-26-7-by-december-and-15-by-the-end-of-2024/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Wed, 18 Oct 2023 09:28:13 +0000</pubDate> <category><![CDATA[Business]]></category> <category><![CDATA[Economy]]></category> <category><![CDATA[Featured]]></category> <category><![CDATA[Features]]></category> <category><![CDATA[News]]></category> <category><![CDATA[Ghana]]></category> <category><![CDATA[Inflation]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=86406</guid> <description><![CDATA[<p>By 2023’s end, according to President Nana Addo Dankwa Akufo-Addo, the country’s inflation rate will have decreased. The rate at which prices increase over a specific time period is known as inflation. As of September 2023, Ghana’s inflation rate was 38.1 percent. The president claims that steps are being taken by the administration to boost […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/according-to-akufo-addo-inflation-would-fall-to-26-7-by-december-and-15-by-the-end-of-2024/">According to Akufo-Addo, inflation would fall to 26.7% by December and 15% by the end of 2024.</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[ <p>By 2023’s end, according to President Nana Addo Dankwa Akufo-Addo, the country’s inflation rate will have decreased.</p> <p>The rate at which prices increase over a specific time period is known as inflation. As of September 2023, Ghana’s inflation rate was 38.1 percent.</p> <p>The president claims that steps are being taken by the administration to boost the economy and control inflation.</p> <ul class="wp-block-list"> <li><a href="https://www.sweetmelodiesfm.com/akufo-addo-praises-the-late-felix-owusu-adjapong-for-his-distinguished-service-to-the-npp/">Akufo-Addo praises the late Felix Owusu-Adjapong for his distinguished service to the NPP.</a></li> </ul> <p>At the time of his comments, President Akufo-Addo was addressing at a gathering of the Christian Council of Ghana at Jubilee House.</p> <p>“The indications are getting more and more evident, and the really high inflation rate we experienced last year is decreasing. We will be looking at 26.7 percent by year’s end.</p> <p>“By the end of next year, we will bring it down to 15. We have to go down to the single digits,” he stated.</p> <p>President Akufo-Addo also used the opportunity to ask for prayers to lead the country to recovery.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/according-to-akufo-addo-inflation-would-fall-to-26-7-by-december-and-15-by-the-end-of-2024/">According to Akufo-Addo, inflation would fall to 26.7% by December and 15% by the end of 2024.</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>June’s inflation increased slightly from 42.2% to 42.5%.</title> <link>https://www.sweetmelodiesfm.com/junes-inflation-increased-slightly-from-42-2-to-42-5/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Wed, 12 Jul 2023 13:02:43 +0000</pubDate> <category><![CDATA[Business]]></category> <category><![CDATA[Featured]]></category> <category><![CDATA[Features]]></category> <category><![CDATA[News]]></category> <category><![CDATA[Economy]]></category> <category><![CDATA[Ghana]]></category> <category><![CDATA[Inflation]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=84446</guid> <description><![CDATA[<p>Ghana’s June 2023 inflation rate climbed slightly from the 42.2 percent seen in May 2023 to 42.5 percent. Food and non-food goods account for 54.2% and 33.4%, respectively, of this inflationary tendency, according to the government statistician, Professor Samuel Kobina Annim. Locally produced items witnessed an inflation rate of 35.9%, while imported items had a […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/junes-inflation-increased-slightly-from-42-2-to-42-5/">June’s inflation increased slightly from 42.2% to 42.5%.</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[ <p>Ghana’s June 2023 inflation rate climbed slightly from the 42.2 percent seen in May 2023 to 42.5 percent.</p> <p>Food and non-food goods account for 54.2% and 33.4%, respectively, of this inflationary tendency, according to the government statistician, Professor Samuel Kobina Annim.</p> <ul class="wp-block-list"> <li><a href="https://www.sweetmelodiesfm.com/ghanas-inflation-increases-to-42-2-per-cent-in-may/" data-type="post" data-id="83410">Ghana’s inflation increases to 42.2 per cent in May </a></li> </ul> <div class="wp-block-image"> <figure class="aligncenter"><img data-recalc-dims="1" decoding="async" src="https://i0.wp.com/citinewsroom.com/wp-content/uploads/2023/07/inflation-file-.png?w=696&ssl=1" alt="" class="wp-image-955680"/></figure></div> <p>Locally produced items witnessed an inflation rate of 35.9%, while imported items had a higher inflation rate of 44.5%.</p> <p>The Ghana Statistical Service reports that prices of vegetables, such as tomatoes, saw an increase in average prices.</p> <div class="wp-block-image"> <figure class="aligncenter"><img data-recalc-dims="1" decoding="async" src="https://i0.wp.com/citinewsroom.com/wp-content/uploads/2023/07/inflation-food-.png?w=696&ssl=1" alt="" class="wp-image-955682"/></figure></div> <p>Prof. Samuel Kobina Annim advised policymakers to take a critical look at factors contributing to the increase in food inflation.</p> <p>“At the minimum, we see a widening of the gap between food and non-food inflation. We need to focus on why we see food inflation going up. We have seen about a 20 percentage point change between food inflation and non-food inflation.”</p> <p>After reaching a more than two-decade high of 54.1% in December, inflation had gradually declined for four consecutive months until April.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/junes-inflation-increased-slightly-from-42-2-to-42-5/">June’s inflation increased slightly from 42.2% to 42.5%.</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Remove some petroleum taxes and levies to avoid hiking inflation rate</title> <link>https://www.sweetmelodiesfm.com/remove-some-petroleum-taxes-and-levies-to-avoid-hiking-inflation-rate/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Tue, 14 Jun 2022 17:30:25 +0000</pubDate> <category><![CDATA[News]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[Central Bank]]></category> <category><![CDATA[Inflation]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=78021</guid> <description><![CDATA[<p>In the last 5 months, the Central Bank has constantly increased the interest rate from 14.5% to 19% as means of managing the high inflation rate. The May 2022 rate (19%) was the second consecutive rate increase this year, raising borrowing costs to their highest level since February 2018. It can be recalled that Government […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/remove-some-petroleum-taxes-and-levies-to-avoid-hiking-inflation-rate/">Remove some petroleum taxes and levies to avoid hiking inflation rate</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p><strong>In the last 5 months, the Central Bank has constantly increased the interest rate from 14.5% to 19% as means of managing the high inflation rate. </strong></p> <p>The May 2022 rate (19%) was the second consecutive rate increase this year, raising borrowing costs to their highest level since February 2018. It can be recalled that Government Statistician, Professor Kobina Annim, recently announced an inflation rate of 27.6% (May 2022) which is the country’s highest in 18 years. Ghana had 23.9% inflation in April 2022, which was higher than the inflation rates in some African countries, including Nigeria (16.82%), Senegal (7%), Kenya (6.47%), Uganda (4.9%), Ivory Coast (4%), and South Africa (3.9 %).</p> <p>The strategy of using the interest rate as an inflation control measure has not produced the desired results. The issue is that the Central Bank raises the inflation rate based on recorded inflation, which is past price changes, rather than expected inflation. This approach has a net effect of importing past trends into the future. The other effect is that high interest rate only benefits the banking sector. For example, out of the 23 banks in Ghana that have released their financial statements this year, 19 of them made profit, with an average rate of 75 percent and 25 percent coming from interest income on investment and interest on loans, respectively, indicating that most banks are not leading sufficiently.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/top-15-goods-in-ghana-with-the-highest-inflation-in-may-2022/">Top 15 goods in Ghana with the highest inflation in May 2022</a></li> <li><a href="https://www.sweetmelodiesfm.com/govt-must-be-fiscally-prudent-in-order-to-address-rising-inflation-economist/">‘Gov’t must be fiscally prudent in order to address rising inflation</a> <a href="https://www.sweetmelodiesfm.com/govt-must-be-fiscally-prudent-in-order-to-address-rising-inflation-economist/">— Economist</a></li> </ul> <p>As a policy direction, government should consider eliminating some taxes and levies on petroleum products, which are the primary cause of the increase in transportation fares. According to Government Statistician, Professor Kobina Annim, transportation fares recorded 39 percent, the highest indicator of the 27.6% May inflation rate. Examining three major factors that influence petroleum product prices in Ghana – import price, foreign exchange, and taxes and margins; fuel taxes and margins typically account for approximately 40 percent of the ex-pump fuel price, which is really high. This clearly demonstrates that fuel taxes and margins are a major contributor to Ghana’s high inflation rate.</p> <p>Government must take steps to eliminate some petroleum product taxes and levies, such as the sanitation and pollution levy, and the price stabilisation and recovery levy, which have long been misapplied. The elimination of these petroleum taxes will help to stabilise the market’s frequent increases in fuel prices as the National Petroleum Authority and Bulk Oil Distributors (BDCs) will have more fiscal space in the regulating petroleum pricing regime.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/remove-some-petroleum-taxes-and-levies-to-avoid-hiking-inflation-rate/">Remove some petroleum taxes and levies to avoid hiking inflation rate</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Top 15 goods in Ghana with the highest inflation in May 2022</title> <link>https://www.sweetmelodiesfm.com/top-15-goods-in-ghana-with-the-highest-inflation-in-may-2022/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Tue, 14 Jun 2022 11:57:30 +0000</pubDate> <category><![CDATA[Features]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[Ghana Statistical Service]]></category> <category><![CDATA[Inflation]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=77888</guid> <description><![CDATA[<p>The Ghana Statistical Service last week announced that inflation had jumped to 27.6% in May 2022 from 23.6% recorded in April. The drivers of this development are varied and largely driven by local products. Data from the Statistical Service show that 56.2% of the products accounting for the rise in inflation are food and non-food […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/top-15-goods-in-ghana-with-the-highest-inflation-in-may-2022/">Top 15 goods in Ghana with the highest inflation in May 2022</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p><strong>The Ghana Statistical Service last week announced that inflation had jumped to 27.6% in May 2022 from 23.6% recorded in April.</strong></p> <p>The drivers of this development are varied and largely driven by local products.</p> <p>Data from the Statistical Service show that 56.2% of the products accounting for the rise in inflation are food and non-food products locally produced, while 43.8% are imported.</p> <p>The major drivers based on the year-on-year figures show that grapes, which are imported, saw a 100.8% inflation followed by diesel, 81.1%, also imported.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/govt-must-be-fiscally-prudent-in-order-to-address-rising-inflation-economist/">‘Gov’t must be fiscally prudent in order to address rising inflation — Economist</a></li> <li><a href="https://www.sweetmelodiesfm.com/inflation-tempo-pushes-bog-to-19-policy-rate-hike/">Inflation tempo pushes BoG to 19% policy rate hike</a></li> </ul> <p>Firewood saw 73.7% year-on-year inflation.</p> <p>See the full list of the top 15 drivers of inflation below:</p> <p><img data-recalc-dims="1" fetchpriority="high" decoding="async" class="aligncenter size-full wp-image-859503" src="https://i0.wp.com/citinewsroom.com/wp-content/uploads/2022/06/15-items-driving-inflation.jpg?resize=696%2C568&ssl=1" sizes="(max-width: 1200px) 100vw, 1200px" srcset="https://citinewsroom.com/wp-content/uploads/2022/06/15-items-driving-inflation.jpg 1200w, https://citinewsroom.com/wp-content/uploads/2022/06/15-items-driving-inflation-300x245.jpg 300w, https://citinewsroom.com/wp-content/uploads/2022/06/15-items-driving-inflation-1024x835.jpg 1024w, https://citinewsroom.com/wp-content/uploads/2022/06/15-items-driving-inflation-768x627.jpg 768w, https://citinewsroom.com/wp-content/uploads/2022/06/15-items-driving-inflation-750x612.jpg 750w, https://citinewsroom.com/wp-content/uploads/2022/06/15-items-driving-inflation-1140x930.jpg 1140w" alt="" width="696" height="568" data-pin-no-hover="true" /></p> <p>The post <a href="https://www.sweetmelodiesfm.com/top-15-goods-in-ghana-with-the-highest-inflation-in-may-2022/">Top 15 goods in Ghana with the highest inflation in May 2022</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>‘Gov’t must be fiscally prudent in order to address rising inflation’ — Economist</title> <link>https://www.sweetmelodiesfm.com/govt-must-be-fiscally-prudent-in-order-to-address-rising-inflation-economist/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Tue, 14 Jun 2022 11:38:37 +0000</pubDate> <category><![CDATA[Features]]></category> <category><![CDATA[Bank of Ghana]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[Dr. Adu Sarkodie]]></category> <category><![CDATA[Inflation]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=77885</guid> <description><![CDATA[<p>An Economist, Dr. Adu Sarkodie thinks the Bank of Ghana’s measures at fighting inflation may be counter-productive without multisectoral support from some key governmental ministries. He argued that Ghana’s record-high inflation of 27.6%, which is primarily supply-driven, requires key Ministries – Trade, Finance, and Agriculture to institute policies that will reduce public debt and borrowing. […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/govt-must-be-fiscally-prudent-in-order-to-address-rising-inflation-economist/">‘Gov’t must be fiscally prudent in order to address rising inflation’ — Economist</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p><strong>An Economist, Dr. Adu Sarkodie thinks the Bank of Ghana’s measures at fighting inflation may be counter-productive without multisectoral support from some key governmental ministries.</strong></p> <p>He argued that Ghana’s record-high inflation of 27.6%, which is primarily supply-driven, requires key Ministries – Trade, Finance, and Agriculture to institute policies that will reduce public debt and borrowing.</p> <p>Dr. Sarkodie believes these policies will enhance fiscal discipline on the part of various Ministries, which will consequently tackle inflation.</p> <p>“The fight against inflation has not been effective because it is a supply-side issue, so the Bank of Ghana is doing its part. The onus lies on the supply side, the fiscal side, and the real actors like the Ministry of Finance to be fiscally disciplined.”</p> <p>“The Agricultural Ministry must answer some questions, Trade and Industry must answer some questions. All the other actors must be part of this solution, not only the Central Bank,” he argued on Citi TV’s Point of View.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/bank-of-ghana-abolishes-unfair-fees-and-charges/">Bank of Ghana abolishes unfair fees and charges</a></li> <li><a href="https://www.sweetmelodiesfm.com/inflation-rises-again-hits-27-6-in-may-2022/">Inflation rises again; hits 27.6% in May 2022</a></li> </ul> <p>In May 2022, the Bank of Ghana increased interest rates from 17% to 19% in a bid to address inflation.</p> <p>But economists have warned that the continual rise in interest rates may worsen the country’s economic challenges.</p> <p>Mr. Sarkodie rehashed these concerns, emphasising the need for Ghana to adopt “a better approach where we will all not lose.”</p> <p>The Government Statistician, Prof. Samuel Kobina Annim has already said the current rising inflation in the country has more to do with the country’s fiscal policies rather than monetary policy.</p> <p>According to him, confirmed data collected by the Ghana Statistical Service points to the fact that the rising cost of goods can only be tackled through policy decisions taken by the government on the supply side of things.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/govt-must-be-fiscally-prudent-in-order-to-address-rising-inflation-economist/">‘Gov’t must be fiscally prudent in order to address rising inflation’ — Economist</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Inflation rises again; hits 27.6% in May 2022</title> <link>https://www.sweetmelodiesfm.com/inflation-rises-again-hits-27-6-in-may-2022/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Wed, 08 Jun 2022 12:36:08 +0000</pubDate> <category><![CDATA[Features]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[Ghana]]></category> <category><![CDATA[Inflation]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=77660</guid> <description><![CDATA[<p>Ghana’s inflation has soared again to hit 27.6 percent in the month of May 2022. This represents a four percentage points increase in the inflation rate compared to the 23.6 percent recorded in April 2022. On a monthly basis, inflation however dropped by one percent to record 4.1 percent in May 2022. This was captured […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/inflation-rises-again-hits-27-6-in-may-2022/">Inflation rises again; hits 27.6% in May 2022</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p><strong>Ghana’s inflation has soared again to hit 27.6 percent in the month of May 2022.</strong></p> <p>This represents a four percentage points increase in the inflation rate compared to the 23.6 percent recorded in April 2022.</p> <p>On a monthly basis, inflation however dropped by one percent to record 4.1 percent in May 2022.</p> <p>This was captured in the Consumer Price Index (CPI) data released by the Ghana Statistical Service (GSS) on Wednesday, June 8, 2022.</p> <p>According to the data, food inflation rose again to record 30.1 percent compared to 26.6 percent recorded in April.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/inflation-tempo-pushes-bog-to-19-policy-rate-hike/">Inflation tempo pushes BoG to 19% policy rate hike</a></li> <li><a href="https://www.sweetmelodiesfm.com/transport-fares-take-toll-on-inflation-as-it-hits-23-6-in-april/">Transport fares take toll on inflation as it hits 23.6% in April</a></li> </ul> <p>Non-food inflation stood at 25.7 percent in May, compared to 21.3 percent recorded in the previous month.</p> <p>GSS also noted that this is the second time in 29 months that inflation for imported items exceeded domestic inflation.</p> <p>Whilst inflation for locally produced items was 27.3 percent, inflation for imported items stood at 28.2 percent in the month under review.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/inflation-rises-again-hits-27-6-in-may-2022/">Inflation rises again; hits 27.6% in May 2022</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Ukraine raises its interest rate to the highest in Europe</title> <link>https://www.sweetmelodiesfm.com/ukraine-raises-its-interest-rate-to-the-highest-in-europe/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Fri, 03 Jun 2022 14:28:16 +0000</pubDate> <category><![CDATA[News]]></category> <category><![CDATA[World]]></category> <category><![CDATA[Inflation]]></category> <category><![CDATA[Russia-Ukraine war]]></category> <category><![CDATA[Turkey]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=77483</guid> <description><![CDATA[<p>Ukraine’s central bank has more than doubled its interest rate to 25% the highest level for any European country. The move is intended to slow soaring inflation and prevent a further collapse of its currency following Russia’s invasion in February. Businesses have been forced to close and key supply chains have been cut off since […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/ukraine-raises-its-interest-rate-to-the-highest-in-europe/">Ukraine raises its interest rate to the highest in Europe</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00"><b class="ssrcss-hmf8ql-BoldText e5tfeyi3">Ukraine’s central bank has more than doubled its interest rate to 25% the highest level for any European country.</b></p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">The move is intended to slow soaring inflation and prevent a further collapse of its currency following Russia’s invasion in February.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Businesses have been forced to close and key supply chains have been cut off since the war began.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">The World Bank predicts that Ukraine’s economy could shrink by as much as 45% this year.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">The rate of inflation – or the cost of living – has risen to 17% in Ukraine and is on track to hit 20% this year, according to the country’s central bank.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">The National Bank of Ukraine said the benchmark interest rate increase – from 10% to 25% – would help protect citizens’ savings from being eaten by soaring inflation.</p> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Ukraine’s currency, the hryvnia, has also come under heavy pressure since Russia’s invasion, falling sharply in value. The central bank said it hoped the rate rise would ease some of that strain and stabilise the currency.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/ukraine-war-us-to-send-longer-range-rockets-in-latest-aid-package/">Ukraine war: US to send longer-range rockets in latest aid package</a></li> <li><a href="https://www.sweetmelodiesfm.com/melitopol-citizens-resist-russian-occupation-during-the-ukraine-war/">Melitopol citizens resist Russian occupation during the Ukraine war</a></li> </ul> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">It is Ukraine’s first rate increase since the war broke out, with the bank signalling it would move to reduce rates again once inflation was back under control.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">More than $100bn of infrastructure damage to Ukrainian cities has been caused by artillery fire and airstrikes, according to the Kyiv School of Economics, while 14 million citizens have been forced to flee their homes.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">To mount its military defence, and support citizens who have lost their livelihoods, the government has rapidly increased its spending, pushing the budget deficit up 27% month on month to $7.7bn in May, according to Kyiv-based investment bank Dragon Capital.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Banks have also been forced to accept that loans made to businesses in territory now controlled by Russia will probably never be repaid, another huge financial blow to the country’s economy.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">“The most likely scenario is that nearly all corporate and retail loans in the territories that are still occupied will be lost,” said Vitaliy Vavryshchuk, head of macro research at asset manager Investment Capital Ukraine.</p> </div> </div> <div id="piano-inline2"></div> <div class="ssrcss-dm4ypg-ComponentWrapper-HeadlineComponentWrapper e1xue1i89" data-component="subheadline-block"> <h2 id="Key-exports" class="ssrcss-y2fd7s-StyledHeading e1fj1fc10" tabindex="-1"><span role="text">Key exports</span></h2> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Friday marks 100 days since Russia invaded neighbouring Ukraine, with 4,500 civilians killed since fighting broke out. Hospitals and schools have been devastated, while ports have been blockaded, cutting Ukraine off from the exports that form the backbone of its economy.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Around 50% of the world’s supply of neon gas, critical for making the microchips that power smartphones and cars, comes from just two Ukrainian companies.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">In addition, more than 18% of global barley exports, 16% of corn, and 12% of wheat, come from Ukraine’s fields.</p> </div> </div> <div class="ssrcss-18mjolk-ComponentWrapper e1xue1i810" data-component="image-block"> <figure class="ssrcss-wpgbih-StyledFigure e34k3c23"> <div class="ssrcss-ab5fd8-StyledFigureContainer e34k3c21"> <p><figure style="width: 976px" class="wp-caption alignnone"><img data-recalc-dims="1" decoding="async" class="ssrcss-1drmwog-Image ee0ct7c0" src="https://i0.wp.com/ichef.bbci.co.uk/news/976/cpsprodpb/153EE/production/_125022078_ukrainefarmer.png?resize=696%2C392&ssl=1" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/153EE/production/_125022078_ukrainefarmer.png 240w, https://ichef.bbci.co.uk/news/320/cpsprodpb/153EE/production/_125022078_ukrainefarmer.png 320w, https://ichef.bbci.co.uk/news/480/cpsprodpb/153EE/production/_125022078_ukrainefarmer.png 480w, https://ichef.bbci.co.uk/news/624/cpsprodpb/153EE/production/_125022078_ukrainefarmer.png 624w, https://ichef.bbci.co.uk/news/800/cpsprodpb/153EE/production/_125022078_ukrainefarmer.png 800w, https://ichef.bbci.co.uk/news/976/cpsprodpb/153EE/production/_125022078_ukrainefarmer.png 976w" alt="A farmer shovels grain in Ukraine" width="696" height="392" /><figcaption class="wp-caption-text">IMAGE SOURCE, GETTY IMAGES / AFP/ A farmer shovels grain in Ukraine</figcaption></figure></p> </div> </figure> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">“The food crisis really threatens up to 1.4 billion people that are going to experience food shortages and even famine in some places,” Amin Awad, the UN crisis coordinator for Ukraine told the BBC’s Today programme.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">“The food is stranded in Ukraine. It produces 85 million tonnes of grain every year.”</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">With another large harvest coming up in July and August this year, Mr Awad warned that if grain silos – currently full with food – can’t be cleared, crops would rot in the fields because there would be no place to store them.</p> </div> </div> <div id="piano-inline3"></div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Egypt, which prior to the war received around 80% of its wheat from Russia and Ukraine, is currently experiencing shortages, and warned that “millions” could die globally.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Meanwhile, in Turkey inflation surged to a 24-year high of 73.5% in the year to May, driven by the war in Ukraine, a weak currency and high energy prices.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Food costs have skyrocketed by 92% over the past year in Turkey, making basic goods unaffordable for many despite government interventions.</p> </div> </div> </div> </div> <p>The post <a href="https://www.sweetmelodiesfm.com/ukraine-raises-its-interest-rate-to-the-highest-in-europe/">Ukraine raises its interest rate to the highest in Europe</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Inflation tempo pushes BoG to 19% policy rate hike</title> <link>https://www.sweetmelodiesfm.com/inflation-tempo-pushes-bog-to-19-policy-rate-hike/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Tue, 24 May 2022 17:29:50 +0000</pubDate> <category><![CDATA[News]]></category> <category><![CDATA[Business]]></category> <category><![CDATA[Inflation]]></category> <category><![CDATA[Monetary Policy Committee (MPC)]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=77057</guid> <description><![CDATA[<p>Current inflationary pressures have pushed the Monetary Policy Committee (MPC) of the central bank to, once again, trigger a hike in the policy rate to tame the unprecedented rise in prices of goods and services. The MPC increased the policy rate by 200-basis points to 19 percent after inflation saw a huge jump to 23.6 […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/inflation-tempo-pushes-bog-to-19-policy-rate-hike/">Inflation tempo pushes BoG to 19% policy rate hike</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p><strong>Current inflationary pressures have pushed the Monetary Policy Committee (MPC) of the central bank to, once again, trigger a hike in the policy rate to tame the unprecedented rise in prices of goods and services.</strong></p> <div class="td-a-rec td-a-rec-id-content_inlineleft tdi_2 td_block_template_11"> <div class="td-visible-desktop"><ins id="revive-0-0" data-revive-zoneid="70" data-revive-id="fbc36380facbe70552e82914b008915c" data-revive-seq="0" data-revive-loaded="1"></p> <div id="beacon_88213282ea"><img decoding="async" src="https://adserver.thebftonline.com/www/delivery/lg.php?bannerid=0&campaignid=0&zoneid=70&loc=https%3A%2F%2Fthebftonline.com%2F2022%2F05%2F24%2Finflation-tempo-pushes-bog-to-19-policy-rate-hike%2F&referer=https%3A%2F%2Fthebftonline.com%2F&cb=88213282ea" alt="" width="0" height="0" /></div> <p></ins></div> </div> <p>The MPC increased the policy rate by 200-basis points to 19 percent after inflation saw a huge jump to 23.6 percent in April from the 19.4 percent recorded in March, which was largely pushed by the rise in fuel prices and its resultant effect on transport fares.</p> <p>Explaining the decision, Governor of the Bank of Ghana, Dr. Ernest Addison, said though it will affect lending the MPC had to act fast to avoid the situation getting out of hand, especially considering the factors driving inflation and heightened uncertainty surrounding it.</p> <p>“Headline inflation surged in April 2022, and both headline and core inflation have stretched further above the upper limit of medium-term target band. The heightened uncertainty surrounding the inflation dynamics has weighed heavily on the domestic environment and significantly depressed business and consumer sentiments.</p> <p>“The inflation numbers show that while food inflation has accounted for the increases in inflation over the past year, the recent jump in April indicate that relative price increases in the non-food sector are accelerating at a fast pace, which provides information on the extent prices are becoming embedded at,” the report stated.</p> <p>“The Bank’s latest forecast shows a continued elevated inflation profile in the near-term, with a prolonged horizon for inflation to return to the target band. Inflation expectations by consumers, businesses and the banking sector have also heightened.</p> <p>“The risks to inflation outlook are on the upside, and emanate from availability of inputs for food production, imported inflation, continued upward adjustments in ex-pump petroleum prices and transportation costs, possible increases in utility tariffs, and potential wage pressures. The second-round effects of these administered price adjustments will further amplify inflation pressures in the outlook.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/transport-fares-take-toll-on-inflation-as-it-hits-23-6-in-april/">Transport fares take toll on inflation as it hits 23.6% in April</a></li> <li><a href="https://www.sweetmelodiesfm.com/workers-wages-have-been-undermined-by-inflation-tuc/">Workers’ wages have been undermined by inflation – TUC</a></li> </ul> <p>“These considerations show that with the strong rebound in growth and closing of the negative output gap, the balance of risk is clearly on inflation. The MPC took the view that it needed to decisively address the current inflationary pressures to re-anchor expectations and help foster macroeconomic stability,” the report added.</p> <p><strong>It was expected</strong></p> <p>The hike didn’t come as surprise though, as various economic analysts including the Director of Research at the Institute of Economic Affairs (IEA) predicted the policy rate going up – to whip-up investor confidence which has been dampened by rising inflation.</p> <p>“This will help narrow the gap with inflation and also ease to some extent the risk of foreign currency outflows. The adjustment will also provide some assurance to the markets that the BoG is committed to addressing the resurging inflation. Anything less than this may be interpreted as a weak response, which may be concerning to the markets,” he said.</p> <p>Reports indicate investors are shunning government’s short-term debt instruments – 91-day, 182-day and 364-day Treasury bills – as liquidity on the primary market is strained on the back of unfavourable interest rates on this class of debt securities.</p> <p>Per the Treasury auction results for April 1, 2022 published by the Bank of Ghana (BoG), the uptake by the Treasury fell short by 39 percent [GH¢463.65million] against the target of GH¢766million – and this was inadequate to cover up this week’s maturing T-bills worth about GH¢627.48million between 91- and 182-day bills, translating into a maturity cover of 0.74x.</p> <p>Similarly, results of the previous Treasury auction on March 25, 2022 revealed that the uptake of Treasury for the 91-day, 182-day and 364-day T-bills was far below its target, and insufficient to cover the maturing debts worth about GH¢1.01billion across the same tenors. This translated into a 77 percent deficit against the target size and a maturity cover at 0.52x.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/inflation-tempo-pushes-bog-to-19-policy-rate-hike/">Inflation tempo pushes BoG to 19% policy rate hike</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Transport fares take toll on inflation as it hits 23.6% in April</title> <link>https://www.sweetmelodiesfm.com/transport-fares-take-toll-on-inflation-as-it-hits-23-6-in-april/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Thu, 12 May 2022 08:50:28 +0000</pubDate> <category><![CDATA[Features]]></category> <category><![CDATA[News]]></category> <category><![CDATA[GHANA NEWS]]></category> <category><![CDATA[Ghana Statistical Service (GSS)]]></category> <category><![CDATA[Ghanaian economy]]></category> <category><![CDATA[Inflation]]></category> <category><![CDATA[transport fares]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=76850</guid> <description><![CDATA[<p>The pass-through effect of the 15 percent increase in transport fares has taken a heavy toll on the general prices of goods and services, as inflation shot through the roof in April. Data published by the Ghana Statistical Service (GSS) have shown that consumer inflation recorded 23.6 percent in April, indicating an increase of 4.2 […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/transport-fares-take-toll-on-inflation-as-it-hits-23-6-in-april/">Transport fares take toll on inflation as it hits 23.6% in April</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<p>The pass-through effect of the 15 percent increase in transport fares has taken a heavy toll on the general prices of goods and services, as inflation shot through the roof in April.</p> <div class="td-a-rec td-a-rec-id-content_inlineleft tdi_2 td_block_template_11"> <div class="td-visible-desktop"> <div id="beacon_e16ee94fb6"></div> </div> </div> <p>Data published by the Ghana Statistical Service (GSS) have shown that consumer inflation recorded 23.6 percent in April, indicating an increase of 4.2 percentage points from the March inflation. This was largely pushed by transport, which saw a whopping 33.5 percent rise in inflation compared to the 17.4 percent in March.</p> <p>The same factor further shot-up food inflation to 26.6 percent, higher than recorded both in March (22.4 percent) and the average previous 12 months of 13.5 percent. However, food inflation’s contribution to total inflation decreased from 51.4 percent in March 2022 to 50 percent in April 2022.</p> <p>Read also : <a href="https://www.sweetmelodiesfm.com/champion-your-personal-development-as-a-woman-dr-ibukun/">Champion your personal development as a woman – Dr. Ibukun</a></p> <p>Non-food year-on-year inflation on average went up again in April 2022 compared to March 2022, from 17 percent to 21.3 percent.</p> <p>The Statistical Service data further reveal that, for the first time in 29 months, inflation for imported items exceeded domestic inflation.</p> <p>Read Also : <a href="https://www.sweetmelodiesfm.com/bank-of-ghana-abolishes-unfair-fees-and-charges/">Bank of Ghana abolishes unfair fees and charges</a></p> <p>The inflation for imported goods was 24.7 percent, which is higher than the 17.3 percent recorded for March 2022 – while the inflation for locally produced items was 23 percent, up from the 20 percent recorded in March 2022.</p> <p>However, Government Statistician Prof. Samuel Kobina Annim noted at the press briefing that from their data, the domain of inflation accounting for the highest of the 99 items disaggregated – recording changes in prices higher than the overall average of 23.6 percent – were items that are locally produced.</p> <p>Read also: <a href="https://www.sweetmelodiesfm.com/soes-require-structural-governance-reforms-dr-ishmael-yamson/">SOEs require structural governance reforms – Dr. Ishmael Yamson</a></p> <p>“We tried pointing policymakers to what they have to look at, especially in the light of conversation around whether the inflation rate is heavily driven by the Russian invasion of Ukraine or some other factors. So, we disaggregated the 307 items into items that are food and non-food, and items that are imported and locally produced.”</p> <p>He then indicated that the Russia – Ukraine war’s impact on the list of inflation items is secondary and not direct.</p> <p>“Because once it is the war, then you look at the imported food and non-food. When you put this component together – that is the 25.3 percent for imported non-food and 17.2 percent for imported foods – you will have in excess of 42.5 percent, which is also as impactful as the locally produced food items.</p> <p>“But broadly, from a locally produced item perspective – either food or non-food, we have 40.4 percent and 17.2 percent respectively… which accounts for 57.6 percent for the locally produced items.</p> <p>“So, this is where policy should direct its attention, especially asking whether monetary policies can address all these different items in the same way; or will you need the real sector to also address some of these changes in prices we are seeing?” the Government Statistician said.</p> <p>Read also: <a href="https://www.sweetmelodiesfm.com/employment-and-labour-minister-nxesi-formally-launches-south-africas-hosting-of-a-global-conference-to-discuss-urgent-interventions-to-tackle-child-labour/">Employment and Labour Minister Nxesi Formally Launches South Africa’s Hosting of a Global Conference to Discuss Urgent Interventions to Tackle Child Labour</a></p> <p>Nonetheless, the incessant rise of consumer prices remains a global phenomenon, as central banks in advanced economies battle to tame the surge.</p> <p>The rise in prices exceeds market expectations, which was projected to hit around 20.25 percent ± 0.5 percent, on the back of some perceived major inflation risks emanating from food inflation.</p> <p>Consumer inflation measures changes in the price of a fixed basket of goods and services purchased by households in the country.</p> <p>“The domain that accounted for the highest of the 99 items that recorded changes in prices higher than the 23.6 percent were items that are food and locally produced,” Prof. Annim said.</p> <p>The post <a href="https://www.sweetmelodiesfm.com/transport-fares-take-toll-on-inflation-as-it-hits-23-6-in-april/">Transport fares take toll on inflation as it hits 23.6% in April</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> <item> <title>Ukraine war will cause greatest price shock in 50 years – World Bank</title> <link>https://www.sweetmelodiesfm.com/ukraine-war-will-cause-greatest-price-shock-in-50-years-world-bank/</link> <dc:creator><![CDATA[Editor]]></dc:creator> <pubDate>Wed, 27 Apr 2022 13:22:47 +0000</pubDate> <category><![CDATA[News]]></category> <category><![CDATA[World]]></category> <category><![CDATA[Global economy]]></category> <category><![CDATA[Global Trade]]></category> <category><![CDATA[Inflation]]></category> <category><![CDATA[Russia]]></category> <category><![CDATA[Russia-Ukraine war]]></category> <category><![CDATA[World Bank]]></category> <guid isPermaLink="false">https://www.sweetmelodiesfm.com/?p=76701</guid> <description><![CDATA[<p>The war in Ukraine is set to cause the “largest commodity shock” since the 1970s, the World Bank has warned. A new forecast said the disruption caused by the conflict would contribute to huge price rises for goods ranging from natural gas to wheat and cotton. The increase in prices “is starting to have very […]</p> <p>The post <a href="https://www.sweetmelodiesfm.com/ukraine-war-will-cause-greatest-price-shock-in-50-years-world-bank/">Ukraine war will cause greatest price shock in 50 years – World Bank</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></description> <content:encoded><![CDATA[<div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00"><b class="ssrcss-hmf8ql-BoldText e5tfeyi3">The war in Ukraine is set to cause the “largest commodity shock” since the 1970s, the World Bank has warned.</b></p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">A new forecast said the disruption caused by the conflict would contribute to huge price rises for goods ranging from natural gas to wheat and cotton.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">The increase in prices “is starting to have very large economic and humanitarian effects”, Peter Nagle, a co-author of the report, told the BBC.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">He said, “households across the world are feeling the cost of living crisis”.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">“We’re particularly worried about the poorest households since they spend a larger share of income on food and energy, so they’re particularly vulnerable to this price spike,” the senior economist at the World Bank added.</p> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Energy prices are set to increase more than 50%, pushing up bills for households and businesses, the World Bank says.</p> </div> </div> <div id="piano-inline1"> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">The biggest rise will be in the price of natural gas in Europe, which is set to more than double in cost. Prices are forecast to fall next year and in 2024, but even then will remain 15% higher than they were last year.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">The World Bank said this means that from the lows of April 2020 until the highs of March this year we have seen “the largest 23-month increase in energy prices since the 1973 oil price hike”, when tensions in the Middle East sent prices soaring.</p> </div> </div> <div class="ssrcss-18mjolk-ComponentWrapper e1xue1i810" data-component="image-block"> <figure class="ssrcss-wpgbih-StyledFigure e34k3c23"> <div class="ssrcss-ab5fd8-StyledFigureContainer e34k3c21"> <p><figure style="width: 976px" class="wp-caption alignnone"><img data-recalc-dims="1" loading="lazy" decoding="async" class="ssrcss-1drmwog-Image ee0ct7c0" src="https://i0.wp.com/ichef.bbci.co.uk/news/976/cpsprodpb/B981/production/_124298474_gettyimages-535708976.jpg?resize=696%2C392&ssl=1" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/B981/production/_124298474_gettyimages-535708976.jpg 240w, https://ichef.bbci.co.uk/news/320/cpsprodpb/B981/production/_124298474_gettyimages-535708976.jpg 320w, https://ichef.bbci.co.uk/news/480/cpsprodpb/B981/production/_124298474_gettyimages-535708976.jpg 480w, https://ichef.bbci.co.uk/news/624/cpsprodpb/B981/production/_124298474_gettyimages-535708976.jpg 624w, https://ichef.bbci.co.uk/news/800/cpsprodpb/B981/production/_124298474_gettyimages-535708976.jpg 800w, https://ichef.bbci.co.uk/news/976/cpsprodpb/B981/production/_124298474_gettyimages-535708976.jpg 976w" alt="oil-producing platform is seen at Pechora Sea, Russia" width="696" height="392" /><figcaption class="wp-caption-text">IMAGE SOURCE, ANADOLU / GETTY / AFP/ Energy prices are soaring because of Russia’s invasion of Ukraine and set to remain high into 2024</figcaption></figure></p> </div> </figure> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Similarly oil prices are expected to remain elevated into 2024 with a barrel of the benchmark measure, Brent Crude, projected to average $100 this year, something which will lead to widespread inflation.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Russia produces about 11% of the world’s oil, the third biggest share, but the report said “disruptions resulting from the war are expected to having a lasting negative effect” as sanctions mean that foreign companies leave and access to technology is reduced.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Russia currently provides 40% of the EU’s gas and 27% of its oil, but European governments are moving to wean their countries off of supplies from Russia. That has helped push up global prices by creating more demand for supplies from elsewhere.</p> </div> </div> <div class="ssrcss-dm4ypg-ComponentWrapper-HeadlineComponentWrapper e1xue1i89" data-component="subheadline-block"> <h2 id="Wheat-set-for-record-highs" class="ssrcss-y2fd7s-StyledHeading e1fj1fc10" tabindex="-1"><span role="text">Wheat set for record highs</span></h2> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">The World Bank commodity outlook also warned many foods are set to see steep rises in their costs. The UN food prices index already shows they are at their highest since records began 60 years ago.</p> </div> </div> <div id="piano-inline2"></div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Wheat is forecast to increase 42.7% and reach new record highs in dollar terms. Other notable increases will be 33.3% for barley, 20% for soybeans and 29.8% for oils and 41.8% for chicken. These increases reflect the fact that exports from Ukraine and Russia have fallen drastically.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Before the war the two countries accounted for 28.9% of global wheat exports according to JP Morgan, and 60% of global sunflower supplies – a key ingredient in many processed foods – according to S&P Global.</p> </div> </div> <div class="ssrcss-18mjolk-ComponentWrapper e1xue1i810" data-component="image-block"> <figure class="ssrcss-wpgbih-StyledFigure e34k3c23"> <div class="ssrcss-ab5fd8-StyledFigureContainer e34k3c21"> <p><figure style="width: 976px" class="wp-caption alignnone"><img data-recalc-dims="1" loading="lazy" decoding="async" class="ssrcss-1drmwog-Image ee0ct7c0" src="https://i0.wp.com/ichef.bbci.co.uk/news/976/cpsprodpb/107A1/production/_124298476_gettyimages-1232841347.jpg?resize=696%2C392&ssl=1" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/107A1/production/_124298476_gettyimages-1232841347.jpg 240w, https://ichef.bbci.co.uk/news/320/cpsprodpb/107A1/production/_124298476_gettyimages-1232841347.jpg 320w, https://ichef.bbci.co.uk/news/480/cpsprodpb/107A1/production/_124298476_gettyimages-1232841347.jpg 480w, https://ichef.bbci.co.uk/news/624/cpsprodpb/107A1/production/_124298476_gettyimages-1232841347.jpg 624w, https://ichef.bbci.co.uk/news/800/cpsprodpb/107A1/production/_124298476_gettyimages-1232841347.jpg 800w, https://ichef.bbci.co.uk/news/976/cpsprodpb/107A1/production/_124298476_gettyimages-1232841347.jpg 976w" alt="food market in Colombo" width="696" height="392" /><figcaption class="wp-caption-text">IMAGE COPYRIGHT / AFP/ The rising cost of food has contributed to protests against the government in Sri Lanka</figcaption></figure></p> </div> </figure> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Prices for other raw materials including fertilisers, metals and minerals are also predicted to go up. The costs of timber, tea and rice are amongst the few expected to fall.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">“Wheat is one of the hardest agriculture exports to replace,” according to a research note from the Bank of America. It points out that poor weather conditions in North America and China are likely to exacerbate the impact of Ukrainian supplies being reduced, something which will continue because the war has disrupted the spring planting season.</p> <ul> <li><a href="https://www.sweetmelodiesfm.com/world-bank-helps-protect-buildings-in-manila-against-quakes/">World Bank helps protect buildings in Manila against quakes</a></li> <li><a href="https://www.sweetmelodiesfm.com/world-bank-promises-200-bn-in-2021-25-climate-cash/">World Bank promises $200 bn in 2021-25 climate cash</a></li> </ul> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">The note also suggests grain and oilseed shipments from Ukraine have fallen more than 80% because of the fighting and these lost exports, over the course of a year, “equate to about 10 days of world food supply”.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">The chief executive of Archer Daniels Midland, one of the world’s four big food commodity traders, said he does not expect prices to come down soon.</p> </div> </div> <div id="piano-inline3"></div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">As the US firm announced a 53% increase in net earnings for the first three month of this year, to $1.05bn, Juan Luciano said: “We expect reduced crop supplies – caused by the weak Canadian canola crop, the short South American crops, and now the disruptions in the Black Sea region – to drive continued tightness in global grain markets for the next few years”.</p> </div> </div> <div class="ssrcss-18mjolk-ComponentWrapper e1xue1i810" data-component="image-block"> <figure class="ssrcss-wpgbih-StyledFigure e34k3c23"> <div class="ssrcss-ab5fd8-StyledFigureContainer e34k3c21"> <p><figure style="width: 976px" class="wp-caption alignnone"><img data-recalc-dims="1" loading="lazy" decoding="async" class="ssrcss-1drmwog-Image ee0ct7c0" src="https://i0.wp.com/ichef.bbci.co.uk/news/976/cpsprodpb/6B61/production/_124298472_nagleworldbank.jpg?resize=696%2C392&ssl=1" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/6B61/production/_124298472_nagleworldbank.jpg 240w, https://ichef.bbci.co.uk/news/320/cpsprodpb/6B61/production/_124298472_nagleworldbank.jpg 320w, https://ichef.bbci.co.uk/news/480/cpsprodpb/6B61/production/_124298472_nagleworldbank.jpg 480w, https://ichef.bbci.co.uk/news/624/cpsprodpb/6B61/production/_124298472_nagleworldbank.jpg 624w, https://ichef.bbci.co.uk/news/800/cpsprodpb/6B61/production/_124298472_nagleworldbank.jpg 800w, https://ichef.bbci.co.uk/news/976/cpsprodpb/6B61/production/_124298472_nagleworldbank.jpg 976w" alt="Peter Nagle" width="696" height="392" /><figcaption class="wp-caption-text">IMAGE COPYRIGHT / AFP/ The World Bank’s Peter Nagle says rising food prices are having “very large economic and humanitarian effects”</figcaption></figure></p> </div> </figure> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">Mr Nagle, from the World Bank, said other countries can help solve the supply shortage caused by Ukraine’s war in the medium term. However a forecast 69% increase in fertiliser prices this year means “there’s a real risk that as farmers start to use fewer fertilisers, agricultural yields will decline”.</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">For commodities overall, the World Bank report said: “While prices generally are expected to peak in 2022, they are to remain much higher than previously forecast.”</p> </div> </div> <div class="ssrcss-uf6wea-RichTextComponentWrapper e1xue1i86" data-component="text-block"> <div class="ssrcss-7uxr49-RichTextContainer e5tfeyi1"> <p class="ssrcss-1q0x1qg-Paragraph eq5iqo00">It added that “the outlook for commodity markets depends heavily on the duration of the war in Ukraine” and the disruption it causes to supply chains.</p> </div> </div> </div> </div> </div> <p>The post <a href="https://www.sweetmelodiesfm.com/ukraine-war-will-cause-greatest-price-shock-in-50-years-world-bank/">Ukraine war will cause greatest price shock in 50 years – World Bank</a> appeared first on <a href="https://www.sweetmelodiesfm.com">Sweet Melodies FM</a>.</p> ]]></content:encoded> </item> </channel> </rss>