Mon. Jan 24th, 2022


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Inflation in the world’s rich economies has reaches a peak of 25 years, which raises concerns about the rising cost of living for households and increasing pressure on central banks to raise interest rates.

The annual rate of consumer price growth in the OECD group of developed countries reached 5.8 percent in November, according to data released on Tuesday, from just 1.2 percent in the same month last year and the highest rate since May 1996.

The rise was driven by energy prices, which rose by 28 percent, more than 3 percentage points from the previous month to the highest rate since June 1980. Food price inflation also rose sharply to 5.5 percent, from 4.6 percent in the previous month .

The data came when the incoming governor of Germany’s central bank warned that inflation could remain high for longer than economists expect.

In the US, the chairman of the Federal Reserve warned that high inflation “serious threat” to a recovery in the country’s labor market.

Line chart of annual% change in consumer price index, OECD average showing Inflation in rich countries reaches 25-year high

Do you experience price inflation where you live? Tell us what you see firstft@ft.com. Thank you for reading FirstFT Asia. Here’s the rest of today’s news – Emily

1. Russian troops to withdraw, says Kazakhstan president Kazakhstan’s President Kassym-Jomart Tokayev, who last week called for help from Russia after claiming the protests were a “coup”, said yesterday that the Moscow-led military mission completed and the contingent would leave the country within 10 days.

Russia sent a peacekeeping mission last week to help stem the worst unrest in Kazakhstan's modern history

Russia sent a peacekeeping mission last week to help stem the worst unrest in Kazakhstan’s modern history © Russian Defense Ministry Press Service / AP

2. Citadel Securities sells $ 1.2 billion stake in Sequoia and Paradigm Hedge fund billionaire Ken Griffin has sold a $ 1.2 billion stake in Citadel Securities to venture capitalists Sequoia and Paradigm, paving the way for an initial public offering from one of the world’s largest market makers.

3. Indian Government Shares Vodafone Idea The company has a rescue plan approved to make India’s government its largest shareholder, by nationalizing a nearly 36 per cent stake in the faltering telecommunications operator to prevent its collapse.

4. Chip crisis hits Volkswagen EV sales in China Volkswagen 10,000 less electric cars sold in China than expected last year, as deliveries to customers in its largest market were hit by semiconductor shortages amid fierce competition from local brands.

5. Yen runs the risk of further decline against dollar in 2022, analysts say The Japanese yen can fall further in the coming weeks after breaking through a crucial support level against the US dollar and reaching a 50-year low against the currencies of Japan’s main trading partners, according to analysts.

Coronavirus consumed

  • English socks see Premier League won a high court payout of at least $ 212m from a Chinese broadcaster about a contract that collapsed during the pandemic.

  • The World Health Organization said countries were “a way away” of the treatment of coronavirus as endemic. A top official has warned that more than half of Europe could be infected with Omicron within the next two months.

  • Boris Johnson faces new questions about his government’s compliance with its own Covid rules after it emerged that the British prime minister had attended a “bring your own drink” event during lockdown.

  • China closed it another city. Residents of Anyang, a 5.5m city, were ordered to stay home while mass Covid-19 testing takes place.

  • As a solution to the anti-vaxxer problem, Andreas Utermann argues that those who are not vaccinated by choice should be obliged to do so. pay for their Covid hospital care.

The day ahead

Monthly Consumer Price Index Data With global inflation on the rise, will focus on CPI data released today from China, India, Russia and the US.

NATO meetings The Military Committee, the highest military authority of NATO, meets in Heads of Defense session to Then headquarters in Brussels. Separately, the NATO-Russia Council will meet to discuss the build-up of Russian troops along Ukraine’s border

Federal Reserve Beige Book Published The US Federal Reserve will release its first summary on economic conditions in 2022.

What else are we reading

China applies brakes on African lending Out of almost nothing, Chinese banks now make up about one-fifth of all loans to Africa. But Beijing has indicated a more cautious approach after a 20-year loan spell. What does this mean for the continent?

How To Ask For A Salary Increase – And Get One! Claer Barrett, the FT’s money making expert, pulls out that big, scary box labeled “Ask for a Salary Increase” in this week’s episode of The Money Clinic. This is a repeat of a previous episode.

North Korea’s embrace of international climate goals North Korea’s withdrawn regime usually avoids involvement with the international community. But after being devastated by a series of extreme events, Pyongyang has proven its willingness to engage in a myriad of environmental issues.

Indian bankers watch 2022 ‘festival’ in exciting mood Since FT’s Chloe Cornish moved to India’s business capital Mumbai at the end of November, financiers have greeted her with an encouraging greeting: “You have arrived in India at a wonderful time!” Fundraising is increasing as the subcontinent recovers from the pandemic.

Will the UK and the EU reach an agreement on Northern Ireland? Talks will resume this week on how to resolve the long-running dispute over trade arrangements. But officials remain far apart on the content of how to manage the new trade border in the Irish Sea. The Financial Times looks at the prospects for a deal.

Movie

Jessica Kingdon has had remarkable access to a wide variety of businesses in China for her Oscar-winning documentary Ascension. From sex dolls to MAGA hats, here’s what the movie says about the Chinese dream.

A worker in Zhongshan inspects the head of a sex doll during compilation in the documentary © MTV Documentary Films

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