How do you measure inflation during the pandemic?


This article is the live version of our coronavirus business update newsletter. Please share this article with friends and colleagues who may find it valuable, and let them know that even if they are not a subscriber of the Financial Times, they can read the newsletter for free-and all FT-for 30 days.Welcome and Please register here.

Covid cases and vaccination

Total number of global cases: 172.1m

Total dose given: 2000000000

Get the latest global pictures through our website Vaccine Tracker

latest news

  • France The color coding system for travel was announced. EU members are classified as “green”, the United Kingdom and the United States are classified as “orange”, and countries with severe epidemics such as India and South Africa are classified as “red”.

  • Canada Due to the country’s blockade of the third wave of coronavirus, unemployment was recorded for the second consecutive month

  • Approved for use in the UK BioNTech/Pfizer vaccine For children 12-15 years old, as infections involving the Delta mutation of the coronavirus increase

For the latest coronavirus updates, please visit our Live blog

How do you measure The impact of price increases When the normal consumption pattern is completely subverted by the global pandemic? This is today’s theme in the latest installment of our series: Inflation: a new era?

Statistics departments usually use a package of goods and services to monitor expenditures on daily necessities and items such as restaurants and flights-due to the restrictions of the pandemic, consumption has fallen sharply.

The way these items are weighted can severely distort the readings. For example, in the Eurozone, the weights are updated once a year in January, so this year’s calculations will not pay much attention to items such as gasoline, hotels, and restaurants that were affected by the lockdown last year. This means that even if consumers return to their pre-pandemic spending patterns, official statistics will underestimate spending in these areas.

This ambiguity makes policy goals harder Central banker, The consensus has been broken on the best way to encourage low and stable price growth.

Increasingly consider other indicators.This Used car market For example, the Fed is paying close attention.

Those who are convinced that this new era of inflation has come have plenty of ammunition.For example, yesterday’s United Nations data showed that the world Food prices soar by 40% May-The biggest monthly increase since 2011.

Global economy

Some of the 47 Japanese companies paid a total of more than US$3 billion to support Tokyo Olympics -Up to Sports events that have been heavily sponsored -Worried that unless the game is postponed to allow more spectators to participate, their revenue will decrease. At the same time, as the coronavirus infection continues and the vaccination plan is slow, the Japanese people have become indifferent to this spectacle.

Pay close attention today Non-agricultural employment data shown The United States added 559,000 jobs in May, lower than expected The unemployment rate fell to 5.8%.Yesterday’s separate data shows New jobless application Fell to a low point during the pandemic.

European Union Trade Director Valdis Dombrovskis told the Financial Times that he would like to see Vaccine production Increase rather than support the proposal to abandon patents supported by the United States, in Important World Trade Organization Conference June 8-9. Brussels wants to remove export restrictions and use existing WTO intellectual property rules to promote licensing.The United States announced the details of the plan yesterday Donate millions of spare doses As part of its efforts to become the “World Vaccine Bank”.

business

Sausage rolls from “Hip National Treasure” Greggs Or crayfish and avocado salad price? Leisure industry reporter Alice Hancock watching Britain competes for lunch In the context of changing streets and commuting habits, between the two major takeaway chains.

Thanks to the success of the US vaccination program, “Concrete World 2021” marks the return of the trade show Las Vegas,among them $11.5 billion meeting business It is vital to cities severely affected by the epidemic. Event companies across the country are keen on the return of physical exhibitions, or as an industry executive said: “In fact, virtual exhibitions do not generate the kind of value our customers are looking for.”

Will readers be tempted back bookstore Now the blockade is about to end?Columnist John Garper reported on the story of an Englishman trying to seduce Americans Leaving Amazon and returning to Barnes & Noble.

market

U.S. stocks rose because U.S. stocks rose lower than expected we position Helped alleviate investors’ concerns, namely Overheated economy And the Fed will begin to withdraw its stimulus measures. In Europe, the regional Stoxx 600 index is still close to the all-time high set earlier this week.

This United States Federal Reserve Is to start selling Corporate bonds and fixed income funds It purchased it last year as part of its emergency plan to help the company borrow more cheaply. Although the use of the secondary market corporate credit facility (SMCCF) is low, the Fed stated that the mere promise of support will help the market resume operations after the initial pandemic panic.

Alphabetti Pasta May 27

Foreign investors bought record levels British government debt According to new data from the Bank of England, this has helped fund a massive increase in borrowing to fund pandemic measures in the past year. Compared with economies with lower than zero government bond yields, such as the Eurozone or Japan, the yield on British assets is relatively high.

The line chart of changes in British government debt holdings (billion pounds) shows that foreign investors are snapping up Phnom Penh bonds at a record rate

Express your opinion

No fancy comments The reopening of the hotel industry in the UK failed to increase retail traffic in May:

It is obvious that shopping as a leisure activity has not yet recovered. It is not yet clear whether “also” should be used as a warning. The shift of some demographics that did not shop online before the pandemic to wider adoption may mean that it will never return to its original position. The link between retail traffic and dining out relies on the casual day-out shopping and the walk-in custom of chain restaurants. Targeted shopping with high conversion rates is another matter. Dining out is a specific (and planned) trip in itself, and it is impossible to do it after such a long time, and it is necessary to book a specific time, focusing more on local bars and restaurants rather than the city center, where eating out is usually It’s in the middle or at the end of a leisure shopping journey.

So all this is not strange to me. There are few best food-oriented bars, especially those with outdoor spaces, and many people still feel more comfortable, located in or close to major shopping destinations.

Final thoughts

Hong Kong’s real estate market is the most expensive in the world, but some high-quality properties have been abandoned. the reason?The combination of superstition, mystery, and conspiracy has led many people to believe that they are Haunted. ..

Rumors and ghost stories revolve around the Dragon House on Victoria Peak in Hong Kong © Alamy

Recommended newsletter

Editor’s choice — Favorite stories personally selected by FT editors. Register here

City bulletin — Bryce Elder’s pre-market updates and comments. Register here

We really want to hear your opinion.Please send your feedback or suggestions to [email protected]Thank you



Source link