Sat, Sep 10, 2022 page10

• World Business Quick Take

  • Agencies
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  CHINA

  Inflation index moderates

  China’s consumer inflation unexpectedly moderated last month as sporadic lockdowns across the nation suppressed spending, while producer price growth slowed more than expected, giving policymakers enough room to support the troubled economy if needed. The consumer price index rose 2.5 percent last month from a year earlier, compared to a 2.7 percent gain in July, data from the Chinese National Bureau of Statistics showed yesterday. The median forecast in a survey of economists was for a 2.8 percent increase. Factory-gate inflation slowed to 2.3 percent from 4.2 percent in July, below economists’ expectation of 3.2 percent. China’s core CPI, which excludes volatile food and energy costs, was unchanged at 0.8 percent last month, a sign of weak domestic demand.

  EUROPE

  Further rate hike likely

  The European Central Bank (ECB) must raise interest rates further to prevent record eurozone inflation from spilling over into wages, Governing Council member Klaas Knot said, reinforcing the hawkish message after this week’s historic hike. Thursday’s 75 basis-point move was a “powerful and big signal, but more steps should follow,” Knot told Dutch radio yesterday, warning of a “big risk of second-round effects.” The aggressive tone was also evident among his colleagues. Bank of France Governor Francois Villeroy de Galhau urged “orderly but determined” action, while Slovakia’s Peter Kazimir called for “resolute hikes” to tackle “unacceptably high” price gains. The comments underscore the tougher stance adopted by the ECB since it lifted borrowing costs for the first time in more than a decade in July.

  JAPAN

  Stimulus could soften prices

  Japan yesterday unveiled near-term stimulus steps to soften the economic blow of high food and energy prices on low-income households, businesses and farmers. As part of the steps, the government is offering ￥50,000 (US$353) in financial support to low-income households exempt from paying resident taxes to help them pay for rising costs of electricity, gas and food. Other steps include an extension of existing subsidies to keep the price of animal feed for livestock and dairy farmers down beyond next month. The government would also hold off on raising the price of imported wheat it sells to retailers beyond next month, making it easier for households to cope with higher commodity costs by reducing pressure on bread and noodle prices.

  SEMICONDUCTORS

  Delivery times shrink

  Chip delivery times shrank again last month, a sign that the global shortage is easing further, but some types of semiconductors remain hard to find. Delivery times averaged 26.8 weeks last month, Susquehanna Financial Group research showed. That was a day shorter than they were in July. The shorter wait times reflect slowing demand for some kinds of technology, namely, phones and personal computers, Susquehanna analyst Chris Rolland said. However, parts of the market remain overheated, with orders coming in faster than chipmakers can fill them. In the personal computer market, the supply chain has largely returned to normal operations, Dell Technologies said on Thursday. Many component costs are getting cheaper as availability has improved and demand has weakened, although Dell is working on clearing its inventories before being able to take advantage of more favorable component prices, it said.
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