Serbia's trade ministry decided to cap bread prices to protect citizens' standard of living after double-digit inflation for bread and cereals.
Since the beginning of the year, BET-TR has grown by 5.71% ytd, recovering entirely from the fall caused by the war in Ukraine and deterioration in Romania's economic prospects.
The price of natural gas quadrupled compared to July 2021 and the price of electricity increased by 59%.
Inflation expected to reach 13.9% in December as war in Ukraine keeps fuelling supply-side issues in some key commodity markets.
Despite the authorities’ demand for ‘lira-isation’ few Turks have any real faith in the national currency as inflation runs riot.
Both crops are in high demand given the disruption caused by the war in neighbouring Ukraine to international food markets.
High import prices of food and energy are now spilling over into the prices of other products and services.
BNR says it expects no further rise in inflation over the coming two quarters and is concerned about the economic stagnation in the second and third quarters of 2022.
8.0% m/m surge in energy prices help industrial price rise keep close to the 50% y/y level for the fourth month in a row.
The Bruegel think-tank has published a set of interactive charts that show very clearly how Russian gas imports to Europe this year are well below the historical average.
North Macedonia’s retail sales dropped by a real 2.6% year-on-year in June.
Russians are not allowed to travel directly to Bulgaria due to the EU-wide sanctions, but many arrive via Serbia, Turkey or Armenia.
August could bring another crash in the USD/TRY.
Hike in cost of the public borrowing — which increased by 0.9pp to 8.74% in June — raises more concerns than the size of the debt.
Only a hike in cereals exports helped Moldova avoid an even bigger trade deficit.
Rising inflation the culprit again.
Germany’s leading economic index, the ZEW, collapsed in July as fears mount that Russia will cut the country off from gas entirely at the end of this month, and that could spark a major economic crisis, Oxford Economics reported on July 12.
Pockets of weakness persist in emerging markets where real interest rates are deeply negative – and risks for those countries are rapidly mounting.
Latest increase in reference interest rate follows raise from 2.5% from 2% in June as inflation continues to accelerate.
Romania’s retail sales up 8.1% y/y in May, pushed up by refugees' spending as well as households front-loading planned expenditures before expected price rises.