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View all search resultsEuro zone bond yields hit multi-week highs on Tuesday after a survey showed euro zone consumers expecting higher inflation, prompting markets to raise the likelihood of a hike in interest rates by the European Central Bank in the coming months.
The global growth could be lowered by 0.3 to 0.4 percentage point in a baseline scenario, with an early end to the war, and by as much as 1 percentage point if it endures, according to World Bank's projection.
Inflation in Indonesia has slowed down in March despite surging global oil prices and elevated demand over the Idul Fitri holidays, but analysts warn of rising inflationary pressure as the Iran war drags on.
Euro zone inflation soared past the European Central Bank's 2 percent target this month as surging oil and gas costs drove up headline prices, but the jump was smaller than expected and core inflation declined, muddying the picture for policymakers.
Indonesia faces rising inflation during the Ramadan season every year, but inflationary pressures this year have been compounded by the government’s free nutritious meal program, pushing annual inflation to 4.76 percent. The situation may worsen as the ongoing United States-Israel war on Iran pushes up global commodity prices, particularly oil and gas, which could further fuel inflation in Indonesia.
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