Connect with us

World

Eurozone inflation rose to 2.9% in December according to Eurostat

Published

on

Eurozone inflation rose to 2.9% in December according to Eurostat

The half percentage point rise on the November figure (2.4%) appeared driven by an abatement in falling energy prices

ADVERTISEMENT

Food, alcohol and tobacco were expected to continue with the highest inflation rate in December (6.1%, compared with 6.9% in November), followed by services (4.0%, stable compared with November). But a diminution in energy inflation abated from -11.5% in November to -6.7% in December.

The news is likely to damp hopes of an early interest rate decrease by the European Central Bank in 2024. The bank’s rate stands unchanged from last October at 4%, following steady increases which began in July 2022.

Christine Lagarde, the president of the ECB, voiced concerns late last year that she expected inflation to rise again as subsidies on energy prices were removed. She said last November that it won’t be before the “next couple of quarters” that the ECB will start to cut rates.

Zsolt Darvas, a senior fellow at the Brussels-based think-tank Bruegel, said the rise was in line with expectations since energy prices “very much influence the overall headline inflation rate e-books.”

Of so-called core inflation – which excludes food and energy prices – Darvas said “the important news is that there was a marginal, a very small decline”, from 3.6% in November to 3.4% in December.

Advertisement

“I think this is the more important news because this reflects the underlying developments of inflation. So it could be that headline inflation might rise a little bit in the coming months. But what the ECB policymakers watch for is how the core inflation will evolve.”

However, Darvas pointed out that the 3.4% core inflation rate remains adrift of the ECB’s 2% inflation target of the European Central Bank.

With wage growth accelerating and inflation broadly slowing, consumer purchasing power is increasing, according to Darvas, which might imply demand pressure, in turn making higher inflation stubborn.

“That’s why I would expect that the ECB will not stop cutting interest rates anytime soon,” Darvas said, adding: “My expectation is that the European Central Bank will keep its current interest rates for many, many additional months because core inflation is still well above the target of 2%.”

Darvas also pointed to escalation of the Middle East conflict as a risk particularly for global global oil and energy prices. Such an escalation “would have an impact all around the world, including in Europe and the eurozone. And that could keep inflation pressure higher for longer.”

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

World

Most Americans See TikTok as a Chinese Influence Tool, Reuters/Ipsos Poll Finds

Published

on

Most Americans See TikTok as a Chinese Influence Tool, Reuters/Ipsos Poll Finds
By Jason Lange and David Shepardson WASHINGTON (Reuters) – – A majority of Americans believe that China uses TikTok to shape U.S. public opinion, according to a Reuters/Ipsos poll conducted as Washington moves closer to potentially banning the Chinese-owned short-video app. Some 58% of respondents to …
Continue Reading

World

Biden admin sanction waivers give Iran access to billions in funds to keep war efforts going, expert says

Published

on

Biden admin sanction waivers give Iran access to billions in funds to keep war efforts going, expert says

The Biden administration has allowed billions in sanctions waivers that benefit Iran, with estimated billions more in unsanctioned oil sales, which allows the Iranian government to continue diverting money to its drone factories and funding proxy groups, an expert told Fox News Digital. 

“What happens when you end up releasing that money is that it goes into the general funds, which can then be used in lots of different ways,” Jonathan Schanzer, senior vice president for research at the Foundation for Defense of Democracies (FDD), explained. 

“If they are using the sanctions relief to fund their general budget, then ultimately [they] are to the benefit of the IRGC because the IRGC partakes in that regular budget,” Schanzer said, noting the Biden administration has often argued that any waivers do not ultimately and directly benefit the Iranian military and the Islamic Revolutionary Guard Corps (IRGC). 

“Let me put it this way: There is no way to do it without ultimately benefiting the regime and its ultimate objective, which is to fund its malign activities abroad,” Schanzer, a former terrorism finance analyst at the U.S. Department of the Treasury noted.

TEHRAN ‘RELIGIOUSLY’ BROADCASTING ANTI-ISRAEL UNREST AT US SCHOOLS FOR PROPAGANDA, EXPERT SAYS

Advertisement

A State Department spokesperson told Fox News Digital that the Biden administration “has not lifted a single sanction on Iran. Rather, we continue to increase pressure.” 

“Our extensive sanctions on Iran remain in place, and we continue to enforce them,” the spokesperson said. “Over the last three years, the U.S. has sanctioned over 600 individuals and entities connected to the full range of Iran’s problematic and dangerous behaviors, UAV and missile proliferation, terrorism, terrorist financing and other forms of illicit trade, horrific human rights abuses and support for proxy terrorist groups.” 

President Biden, left, and Iranian Supreme Leader Ayatollah Ali Khamenei. (Getty Images)

“We have even seen the regime fail to meet its own revenue expectations as it struggles to evade our sanctions and find illicit buyers for its oil,” the spokesperson said, not commenting on the fact Iran does find buyers for its oil. The spokesperson insisted that the U.S. sanctions, in combination with “Iran’s economy and regime mismanagement,” have brought the country’s currency “to the lowest it has ever been against the U.S. dollar.” 

A second State Department spokesperson reiterated the fact that the sanctions waiver allowing Iraq to buy electricity from Iran has been renewed 21 times since the Trump administration first issued the waiver in 2018 and that “any notion” that money goes to Iran due to the waivers “is false and misleading.” 

Advertisement

THERE IS ‘NO DOUBT’ THAT ANTI-ISRAEL PROTESTS ARE ‘HIGHLY COORDINATED’ ACROSS SENIOR LEVELS IN US: MIKE POMPEO

“We have been in ongoing engagement with allies and partners, including at the G-7 and with the EU, on ways to increase pressure on Iran,” the second spokesperson said. 

A Fox News Digital analysis, in combination with the FDD’s research, determined that Iran has received between $16 billion and $20 billion in sanctions waivers, with billions more gained through the sale of Iranian oil, which the U.S. has sanctioned but has not managed to totally prevent due to a mixture of lax government oversight and more sophisticated evasion methods. 

Iran revolutionary guard with missile display

Islamic Revolutionary Guard Corps military personnel are walking along Enghelab (Revolution) Avenue as an Iranian Kheibar Surface-to-Surface missile is being unveiled during the Ela Beit Al-Moghaddas (Al-Aqsa Mosque) military rally in Tehran, Iran, on Nov. 24, 2023. (Morteza Nikoubazl/NurPhoto via Getty Images)

That includes a $10 billion sanctions waiver so Iraq can trade to obtain electricity from Iran, a $6 billion sanctions waiver agreed for South Korea to transfer money in exchange for the release of five Americans and $3.8 billion gained through the sale of petrochemicals in order to dodge a Trump-era sanction. 

The U.S. State Department in March came under fire for resuming a sanctions waiver, which had been renewed since the Trump administration first issued the waiver in 2018. Some experts estimated the waiver as having a valuation of around $10 billion for Iran. 

Advertisement

IRAN COURT SENTENCES POPULAR RAPPER TO DEATH FOR INVOLVEMENT IN PROTESTS, LAWYER SAYS

That waiver particularly allowed for the transfer of funds between Iran and Iraq so that Iraq, which remains a U.S. ally, could continue to use electricity imported from Iran – but critics saw it merely as another easement on sanctions against Iran. 

“None of this money goes to the mullahs. None of this money goes into Tehran. The sanctions relief that is provided actually goes to vendors that provide humanitarian assistance to the Iranian people,” White House national security advisor John Kirby told reporters at the time. 

Gaza Strip Israel

This file handout picture provided by Hezbollah’s media office on Sept. 2, 2023 shows the Lebanese Shiite group’s Secretary General Hassan Nasrallah, left, during a meeting with the deputy chief of the Palestinian Hamas movement, Saleh al-Aruri, at an undisclosed location in Lebanon. (Hezbollah’s Media Office/AFP via Getty Images)

“Not only do the Iraqi people not suffer because of this, the Iranian people aren’t going to suffer because of this,” Kirby added. “That allows for Iraq to be able to work its way off of Iranian energy so that they can keep the lights on.”

Schanzer countered the administration’s argument by noting that “as soon as [money] hits the system, it is going to be diverted or used in a cynical way,” even taking what humanitarian aid gets into the country through third-party vendors and reselling it to the civilian population, effectively laundering the assistance into money. 

Advertisement

IRAN REJECTS ARGENTINA’S PUSH TO ARREST INTERIOR MINISTER FOR 1994 JEWISH CENTER BOMBING

“When we talk about dual-use goods or even things that they need in order to feed their fighters things along those lines, it is a consistently cynical diversion scheme,” Schanzer said. “Whether we’re talking about Iran itself or we’re talking about Iran’s proxies.”

“When the administration was saying that we shouldn’t be putting sanctions on the Houthis because it would ultimately block humanitarian assistance from getting into Yemen – guess what?” Schanzer continued. “When that humanitarian assistance gets to Yemen, who benefits? The people that control the territory in question, which right now a large chunk of Yemen is controlled by the Houthis.” 

Houthi supporters rally in Yemen

Houthi supporters attend a rally in Sanaa, Yemen, on March 8. (AP/Osamah Abdulrahman)

The New York Times in February published the results of an investigation that determined Iran had managed to sell “oil worth billions of dollars” thanks to “a significant gap in U.S. oversight.” Shipping vessels owned by shell companies and using “spoofing” methods to hide their location made dozens of trips throughout 2023 to ferry Iran’s oil under the sanctions. 

The lack of a total crackdown on Iran’s oil shipments has led a significant number of experts to argue that the Biden administration may have started willfully turning a blind eye to Iran’s activities – partially since the surge in oil sales is clear and evident.

Advertisement

Javier Blas, a long-time energy and commodities reporter, wrote in a Bloomberg op-ed that “the conspiracy theorist inside me says the White House has turned a blind eye to the Iranian sales because it’s more worried about inflation … not only has Iran boosted oil production, but its exports have surged even more because it’s been able to sell a large chunk of the crude it was forced to put in the past into storage, both onshore and into tankers turned into floating storage facilities.” 

Kharg Island Oil Terminal in Iran

A general view of the Port of Kharg Island Oil Terminal, 25 kilometeres from the Iranian coast in the Persian Gulf and 483 kilometers northwest of the Strait of Hormuz, in Iran on March 12, 2017. (Fatemeh Bahrami/Anadolu Agency/Getty Images)

Iran’s growing cooperation with China also plays a significant role in how the country has managed to dodge sanctions, according to Foreign Policy, which cited a 25-year economic cooperation agreement the two countries agreed to in March 2021, as well as Iran’s decision to join the Beijing-led BRICS economic bloc, which gives Iran access to other currencies and trading options. 

“There’s no question that Russia, China and others are working to provide assistance to the Iranians,” Schanzer claimed. “We know this to be the case, but, with the Russians and Chinese, it’s often done in trade or in arms purchases, oil … if they get remuneration in rubles or in RMB (Chinese Yuan) in trade surplus where they can cash in for other products that’s not the same as dollars, and it’s not the same as some of the goods that will come through American channels.” 

Fox News Digital’s Caitlin McFall contributed to this report. 

Advertisement

Continue Reading

World

Ireland to begin sending asylum seekers back to the UK 'by end of May'

Published

on

Ireland to begin sending asylum seekers back to the UK 'by end of May'

British Prime Minister Rishi Sunak say the increase in migrant numbers crossing over to Ireland proves that his controversial Rwanda policy is working.

ADVERTISEMENT

The Irish government has said it is planning to enact legislation by the end of May that would allow it to resume sending asylum seekers who arrive over the border with Northern Ireland back to the United Kingdom.

Justice Minister Helen McEntee said the emergency legislation would allow for faster processing of migrants.

“This has never been a panacea when we talk about returns, the most effective way that we can have an immigration system that’s firm but fair is a fast processing system and what this means is that people’s applications are turned around much more quickly,” she said.

Ireland’s High Court ruled last month that Ireland could not send back people who arrive from the UK seeking asylum because the Irish government had not specified whether they would be at risk after their return.

Taoiseach Simon Harris said the legislation is about giving practical legal meaning to an agreement in place between the UK and Ireland since 2020.

Advertisement

Harris has urged Westminster to stand by the agreement, which allows asylum seekers to be returned in either direction.

Helen McEntee said that Ireland hadn’t returned anyone to the UK since 2020 as the agreement had been suspended during the coronavirus pandemic.

Immigration is an increasingly hot topic in Ireland, where asylum applications have been rising sharply.

British Prime Minister Rishi Sunak claims that the increase in migrants crossing over to Ireland proves that his controversial Rwanda policy, which aims to send some asylum seekers arriving in Britain on a one-way trip to the African country, is working.

Human rights activists and migrants’ groups call the policy unethical, inhumane and costly.

Advertisement

Irish officials estimate that more than 80% of arrivals into Ireland came via the land border with Northern Ireland, which is part of the UK.

Continue Reading

Trending