Financial economics

The last time the Federal Reserve faced inflation as high as it is now, in the early 1980s, it jacked up interest rates to double-digit levels and in the process caused a deep recession and sharply higher unemployment.

On Sept. 8 Chair Jerome Powell suggested that this time, the Fed won't have to go nearly as far.

The average annual inflation is expected to be 12.6%, announced the Acting Finance Minister Rositsa Velkova. She presented the preliminary calculations of the macroeconomic forecast until 2025.

Next year, inflation will slow down to 5.8%, expect from the Ministry of Finance.

The fight will continue until the target of establishing permanent price stability is reached, Treasury and Finance Minister Nureddin Nebati has said, adding that the FX-protected deposit scheme (KKM) has helped curb local demand for foreign currencies.

Albanian Central Bank governor Gent Sejko at a press conference in Tirana on July 6, 2022. Photo: LSA

Bank governor Gent Sejko warned the country that a current inflation rate of 6.7 per cent might not have peaked, adding that while the country is expected to avoid a recession, growth will likely fall.

Latsco Hellenic Holdings (the family office of Marianna Latsi) and Orasis (the fund of George Elliott) will invest about 25 million euros in Dimand as cornerstone investors, acquiring a total of 8.92% of the company after the increase of share capital and while the company will now be listed on the Stock Exchange.

The Russian invasion of Ukraine and the war that has been ongoing for four months now - triggering Western sanctions against Moscow and Vladimir Putin's games with natural gas and crude oil - creates complex economic conditions globally and especially in Europe, which has faced very serious repercussions.

The number of newly launched companies increased by 110.7 percent in May from a year ago, the Turkish Union of Chambers and Commodity Exchanges (TOBB) announced on June 17 in a report.

The British economy contracted by 0.3% in April. The Confederation of British Industry has called on the government to take urgent action to prevent an inflationary recession.

Red-hot U.S. inflation is showing few signs of cooling, putting the Federal Reserve on track to continue its aggressive interest rate increases to help cool high prices that are challenging Joe Biden's presidency.    

Treasury and Finance Minister Nureddin Nebati has said that together with the steps taken within the scope of the fight against inflation, the government aims to improve the inflation expectations day by day and break inflation inertia.