5 in 5 with ANZ
5 in 5 with ANZ
Thursday: Oil, food price headache for central banks
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Thursday: Oil, food price headache for central banks

Oil up 1.6% to US$87.50; Rice up to 15-year high on drought; Food inflation creating new headwinds for central banks globally, but not in Beijing; Deflation returns in China, but authorities hamstrung

Oil prices rose again overnight to their highest levels since January on supply worries. Rice prices also surged to 15-year highs. Any return of food price inflation would be a headache for central banks.

In our deep dive interview, ANZ’s Chief Economist for Southeast Asia and India, Sanjay Mathur, explains why tomato prices are up 800% in parts of India, and why that’s worrying the Reserve Bank of India.

5 things to know

  • Brent crude prices jumped 1.6% to US$87.50/bbl as Russia and Saudi Arabia limited oil supplies. Rice prices hit a 15-year high on bad weather.

  • China fell back into CPI deflation in July for the first time since early 2021.

  • US CPI inflation data tonight is seen stuck at 0.2% in July vs June.

  • The RBI is expected to hold its cash rate at 6.5%, but with a hawkish tone.

  • Italy backtracked on its windfall profits tax on banks after share prices slumped.

Cheers

Bernard

PS: Watch out for Chinese CPI and PPI deflation data today, and the Reserve Bank of India’s decision tomorrow.

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5 in 5 with ANZ
5 in 5 with ANZ
A daily podcast hosted by Bernard Hickey that gives you the five things you need to know about the global economy and markets in under five minutes. Plus a deep dive into emerging trends and issues featuring ANZ's global team of experts.