Most of the measures to freeze energy prices will be maintained in 2023 and the Prime Minister Pedro Sanchez unveiled a new budget of EUR 10 bn intended to support households. This will help to contain food price inflation and counteract the upward pressure on prices caused by the end of the fuel rebate since 1st January 2023.
According to January’s Beige Book published by the Federal Reserve (Fed), economic activity has remained relatively unchanged in all 12 districts since the previous report. However, activity is slowing in the manufacturing sector, despite the mitigation of disruptions in the supply chain. The decline in net real disposable income, combined with higher borrowing costs, is expected to moderate future consumer spending.
According to the latest business surveys, economic activity in the UK continues to contract. According to the Confederation of British Industry (CBI), confidence balances in the industrial and distributive trades sectors (retail and wholesale sales) are clearly deteriorating while rebounding slightly in the services sector
Inflation continues to weigh on consumer confidence, while a large proportion of Japanese households will see further increases in the price of electricity next March, with most suppliers having announced price increases from this month.
