News in Brief
High UK inflation hinders cost-of-living fight
AFP – Britain’s annual inflation rate unexpectedly remained at 8.7 percent in May, official data showed Wednesday, piling pressure on the Bank of England and government to act over a cost-of-living crisis.
Markets had forecast a drop from April’s level, while the BoE was already widely expected to raise interest rates again today to combat an inflation rate which is the highest among G7 nations.
China unveils $72b tax break for green cars
REUTERS – China unveiled on Wednesday a 520 billion yuan ($72.3 billion) package of tax breaks over four years for electric vehicles (EVs) and other green cars, its biggest yet for the industry as it seeks to boost slower auto sales growth.
“The extension by another four years beat market expectations,” said Cui Dongshu, secretary general of the China Passenger Car Association.
German recession will be sharper than expected: Ifo
CNBC – The German economy will contract more than previously expected this year as sticky inflation takes its toll on private consumption, the Ifo Institute said on Wednesday while presenting its forecasts.
“The German economy is only very slowly working its way out of the recession,” Ifo’s head of economic forecasts, Timo Wollmershaeuser, said.
German gross domestic product is expected to fall by 0.4% this year, more than the 0.1% forecast by the Ifo Institute in March.