Retail News CRM

Tag: inflation

  • Philippine Central Bank Lifts Key Rate to 5% to Tackle Sticky Inflation

    Philippine Central Bank Lifts Key Rate to 5% to Tackle Sticky Inflation

    The Bangko Sentral ng Pilipinas raised its benchmark policy rate by 25 basis points to 5 per cent on Thursday. The decision targets persistent price pressures across consumer staples and fuel.

    Overnight deposit and lending facilities climbed to 4.5 per cent and 5.5 per cent. That brings a third straight quarter of tightening, following rate increases in April and June.

    Headline inflation dropped to 6.2 per cent in July from 6.4 per cent in June, easing for a third consecutive month. Core inflation, which strips out volatile energy and food items, edged down to 4.2 per cent from 4.4 per cent. Both figures remain above the government target corridor of 2 per cent to 4 per cent.

    Pressures across food, fuel and wages

    Monetary officials warned that broader price pressures continue to build across supply networks. Volatile global oil benchmarks, potential crop losses from El Niño, and rising agricultural input costs threaten retail food prices nationwide.

    Labor expenses also sit high on the central bank’s monitoring list. A pending minimum wage increase for Metro Manila remains frozen in court. Even so, authorities noted that higher payroll expenses will filter into consumer prices if businesses pass on the cost.

    Bank of the Philippine Islands lead economist Emilio Neri Jr. Pointed out that monetary tightening cannot fix supply bottlenecks. Extreme weather, elevated fertilizer costs, and currency weakness threaten to drive import bills higher for retail operators and food manufacturers.

    Slower growth tests consumer demand

    Higher borrowing costs arrive at a delicate moment for consumer spending and commercial investment. Philippine gross domestic product expanded by 2.3 per cent in the second quarter, decelerating from 2.8 per cent in the first quarter. Gross capital formation shrank 9.2 per cent year-on-year.

    Across Southeast Asia, central bankers are balancing household purchasing power against softening corporate investment. While regional peers have paused rate adjustments to protect domestic commerce, Manila is prioritizing price stability. The focus is on preventing inflation expectations from taking root in retail checkouts.

    Average inflation will exceed the 4 per cent upper boundary through both 2026 and 2027 before settling near the 3 per cent target in 2028, according to central bank forecasts.

  • Bank of Korea Projected to Lift 2026 Economic Growth Estimate Past 3%

    Bank of Korea Projected to Lift 2026 Economic Growth Estimate Past 3%

    The Bank of Korea is expected to raise South Korea’s 2026 economic growth forecast above 3 per cent from 2.6 per cent.

    Surging semiconductor exports and recovering domestic consumption are driving private analyst projections as high as 3.4 per cent. Economic forecasters surveyed by Yonhap News Agency anticipate the central bank will adjust its outlook upward during its upcoming revision cycle, reflecting stronger factory output and higher state spending supported by rising tax receipts.

    Semiconductor Supercycle Drives Upward Revisions

    Nomura Securities posted the highest forecast among respondents at 3.4 per cent. Park Jeong-woo, an economist at Nomura, noted that exponential growth in artificial intelligence inference workloads continues to outpace chip production, suggesting supply constraints could extend beyond 2027.

    Korea Investment & Securities analyst Ahn Jae-kyun projected 3.2 per cent annual growth, pointing to a combination of heavy technology exports and a rebound in local consumer demand. Other respondents placed their 2026 projections between 3.1 per cent and 3.2 per cent. Projections for 2027 moderated, landing between 2.2 per cent and 2.8 per cent across the surveyed institutions.

    Some analysts urged caution regarding the duration of the current technology cycle. Joo Won, deputy director of economic research at Hyundai Research Institute, noted that chip exports dipped in August compared to the prior month, suggesting the export boom may reach its peak between late 2026 and early 2027.

    Surplus Records and Consumer Price Pressures

    South Korea’s current account surplus for the first six months of 2026 has already surpassed the 2025 full-year record of $191 billion. Economists expect the central bank to sharply increase its previous $250 billion annual surplus projection published in May.

    For consumer-facing businesses across the region, a stronger macroeconomic baseline in South Korea provides welcome support for retail footfall and high-ticket consumer electronics, though imported inflation limits purchasing power. Central banks across East Asia face similar cross-currents as artificial intelligence hardware spending lifts headline industrial figures while currency volatility keeps domestic borrowing costs elevated.

    Economists expect the Bank of Korea to hold its 2026 consumer price inflation projection at 2.7 per cent, with elevated oil prices and the won-dollar exchange rate serving as the main hurdles to earlier interest rate cuts.

  • Taiwan Consumer Confidence Dips Despite Strong Economic Forecasts Amid Inflation Fears

    Taiwan Consumer Confidence Dips Despite Strong Economic Forecasts Amid Inflation Fears

    Taiwanese consumer confidence has fallen, with sentiment regarding the economic outlook and spending weakening this month, despite official predictions of the strongest economic growth in decades. A recent survey by Cathay Financial Holding Co. Revealed that inflation concerns and volatility in financial markets are contributing to this cautious mood among consumers.

    The survey highlighted a drop in consumer optimism toward the local stock market and overall risk appetite following recent equity swings. Factors such as heightened tensions between the US and Iran, rising oil prices, and expectations for higher US interest rates have made investors more conservative. Frequent stock trading halts in South Korea and renewed questions about the sustainability of the artificial intelligence (AI) boom have fueled market volatility.

    Divergence in Economic Views

    Consumers now anticipate inflation to average 2.3 percent this year, surpassing the government’s estimate of 2.07 percent and the central bank’s 2 percent target. Their economic growth expectations also fall short of official projections, with consumers anticipating an 8.94 percent expansion this year on average, significantly lower than the government’s forecast of 11.05 percent, which would mark the fastest pace in nearly four decades. Only about one-quarter of respondents expect growth to exceed 10 percent.

    This divergence between official forecasts and household expectations suggests that the benefits of Taiwan’s AI-led economic expansion have not yet translated into stronger consumer confidence. Higher energy costs, inflation risks, and financial market swings are adding to uncertainty, which in turn has led to a weakened willingness among consumers to make major purchases. The index for durable-goods spending has consequently moved into negative territory.

    Investment Sentiment

    Despite the cautious consumer sentiment, Taiwanese equities remain the most preferred investment target for the next six months, selected by 57 percent of respondents. In comparison, 24 percent favored US stocks. For those planning to increase investments, confidence in Taiwanese companies’ ability to sustain earnings was the most frequently cited reason, followed by optimism regarding the economy’s overall strength.

    RetailNews Asia observes that similar patterns of economic growth failing to fully translate into consumer confidence have been seen across other Asian markets, particularly where global economic headwinds and local inflationary pressures create a disconnect between macro-indicators and household spending power. This trend often prompts retailers to adapt strategies to cater to more value-conscious consumers or focus on essential goods over discretionary purchases.

    The survey, conducted from August 1 to August 7, gathered 12,580 responses from customers and members of Cathay Life Insurance Co. And Cathay United Bank Co.

  • Japan Households Brace for Further Price Hikes Amid Weak Consumer Spending

    Japan Households Brace for Further Price Hikes Amid Weak Consumer Spending

    Japanese households are expected to face increasing financial strain as companies across the nation plan to raise prices for goods and services. These hikes, set to begin this summer, are a direct response to persistently high crude oil prices and other rising operational costs. This development is likely to further dampen consumer spending and could impede economic growth.

    Inflationary Pressures Mount

    The impending price adjustments come at a challenging time for Japan’s economy. The gross domestic product (GDP) for April-June recorded a modest 0.3% quarter-on-quarter growth, translating to an annualised rate of 1.1% after price and seasonal adjustments. However, this growth was not fueled by domestic strength. Both private consumption and corporate capital investment declined during the period, highlighting a significant weakness in Japan’s internal demand. The economy’s expansion was primarily supported by external factors.

    Impact On Retail And Consumer Sectors

    The anticipated price increases are poised to directly affect the purchasing power of Japanese consumers. With households already managing existing cost pressures, new price hikes on essential goods and services will likely lead to a further tightening of budgets. This situation poses a challenge for retailers and consumer brands operating in Japan, as cautious consumers may reduce discretionary spending. Companies will need to strategize carefully to navigate this environment of rising costs and potentially constrained consumer demand.

  • No-Frills Noodles See Surge in Japan as Consumers Seek Value Amid Rising Prices

    No-Frills Noodles See Surge in Japan as Consumers Seek Value Amid Rising Prices

    Major Japanese convenience store and supermarket chains are significantly increasing their offerings of no-frills noodle products. This strategic shift aims to cater to consumers actively seeking more affordable food options as inflation continues to impact household budgets across the nation.

    Lawson, a prominent convenience store operator, introduced two types of frozen noodles without toppings in late June 2026, priced at ¥297 (US$1.90) each. This represents a more than 20% price reduction compared to its existing frozen noodle products that include toppings. The company had previously found success with a line of cup noodles without toppings launched in October 2024, which sold over 5 million units due to their focus on quality broth and customizability.

    Retailers Adapt To Shifting Consumer Habits

    Kanako Ochi, an official in Lawson’s product division, highlighted the importance of responding to evolving consumer needs as shoppers become more budget-conscious. The expansion of no-frills options allows the company to offer new product angles while maintaining competitive prices. Similarly, supermarket giant Aeon began selling fried noodles without toppings such as pork and cabbage in April 2025. This product, priced at just ¥320, contains three times the noodle quantity of its standard fried noodle offering.

    Initially launched in select regions, including the Tokyo metropolitan area, the no-frills fried noodles proved immensely popular, selling ten times more than anticipated. This success prompted a nationwide rollout. An Aeon spokesperson attributed the strong performance to consumers appreciating the cost benefits during a period of increased cost of living. Following this, Aeon also launched topping-free soba noodles in July 2026, featuring double the quantity of its regular product.

    Inflation Drives Demand For Value

    The trend towards value-focused products underscores the ongoing impact of inflation in Japan. According to research firm Teikoku Databank, approximately 18,000 products have either seen price increases this year or are slated for increases by November 2026. This pervasive inflationary environment is expected to ensure the continued popularity of no-frills options among Japanese consumers. RetailNews Asia observes this trend as indicative of broader shifts in consumer spending across the region, where economic pressures often lead to a renewed focus on essential, value-driven purchases, prompting retailers to innovate their product portfolios to meet these demands.

  • US Dollar Climbs Against Vietnamese Dong Amid Globally Awaiting Inflation Data

    US Dollar Climbs Against Vietnamese Dong Amid Globally Awaiting Inflation Data

    The U.S. dollar experienced an increase against the Vietnamese dong on Wednesday morning while remaining largely stable against other major currencies. The greenback was sold at VND26,330 by Vietcombank, marking a slight increase of 0.04% from Tuesday’s rate. The currency also saw an increase of 0.35% on the black market, where it was traded at around VND25,800.

    Vietnam’s State Bank Raises Reference Rate

    The State Bank of Vietnam responded to the changes by adjusting its reference rate upwards by 0.09%, setting it at VND25,539. This is a significant step for the bank as it supports the stability of the Vietnamese dong in the face of global economic changes.

    On the global front, the dollar held steady in the Asian market in the early hours of Wednesday. It successfully weathered recent disturbances such as renewed attacks on shipping in critical Middle Eastern waterways. Market players are now eagerly awaiting the release of inflation data later in the day, which could have a significant impact on the currency’s performance.

    The U.S. dollar index, a measure of the dollar’s performance against a collection of six major currencies, exhibited a marginal increase of 0.1%, reaching 99.858.

    Performance of Other Major Currencies

    In terms of other major currencies, the yen remained steady against the dollar at 159.335 yen. This comes despite recent joint interventions by U.S. and Japanese authorities aimed at bolstering the Japanese currency.

    The euro and the British pound were likewise stable at $1.1537 and $1.3503 respectively. The Australian dollar also held its ground at $0.7064. However, the kiwi dollar experienced a slight dip, falling by 0.1% to $0.5876.

    In the coming week, market attention will be firmly placed on the release of U.S. inflation data. This information will be crucial for providing clues about the future direction of Federal Reserve interest rates. This is particularly relevant given that last week’s softer-than-expected jobs report and a press conference by Fed Chair Kevin Warsh last month have done little to clarify the situation.

    Questions & Answers

    What was the selling rate of the greenback against the Vietnamese dong on Wednesday?
    The greenback was sold at VND26,330 by Vietcombank on Wednesday.

    How did the U.S. dollar perform on a global scale?
    The U.S. dollar traded sideways in early Asian dealings on Wednesday despite recent disturbances in the Middle East.

    What is expected to be the major focus for markets in the coming week?
    The major focus for markets in the coming week is the release of U.S. inflation data which is expected to provide clues about the future direction of Federal Reserve interest rates.

  • Vietnams Gold Market Slumps as Global Tensions Stoke Inflation Fears

    Vietnams Gold Market Slumps as Global Tensions Stoke Inflation Fears

    On Monday afternoon, there was a further decline in the gold prices in Vietnam, following a nearly 1% decrease earlier in the day. The gold bar prices offered by Saigon Jewelry Company experienced a drop of an additional 0.42% from the morning’s price, settling at VND165.2 million (US$6,276.26) per tael, marking a total loss of 1.37% for the day.

    Local bullion prices currently stand at around VND17 million per tael higher than the global gold prices.

    Changes in Gold Ring Prices

    Similarly, the cost of gold rings experienced a decrease in price, dropping at roughly the same rate and settling at VND164.7 million per tael. In Vietnam, a tael is equivalent to 37.5 grams or 1.2 ounces.

    On a global scale, gold prices experienced a 1% decrease on Monday. This was triggered by President Donald Trump’s rejection of Iran’s recent peace proposal, aimed at ending the ongoing conflict in the Middle East. This rejection has led to a heightened fear of inflation and a prolonged period of high interest rates.

    Spot gold saw a decrease of 1% to $4,667.99 per ounce, following a rise of approximately 2% during the previous week. U.S. gold futures for June delivery experienced a loss of 1.1% to stand at $4,677.80.

    The Impact of the Middle East Conflict on Gold Prices

    The failure to reach an agreement to end the Middle East conflict has led to sustained inflation risks and expectations of high-interest rates. This in turn has put pressure on the non-yielding bullion, which has seen a drop of over 11% since the inception of the war in late February.

    According to Han Tan, chief market analyst at Bybit, there could be more downward pressure on gold prices if the U.S. Consumer Price Index (CPI) prints prove to be hotter than anticipated tomorrow. This could force the Federal Reserve to maintain high benchmark rates for an extended period.

    Questions & Answers

    **What is the current price of gold bars offered by Saigon Jewelry Company?**
    The current price per tael is VND165.2 million (US$6,276.26).

    **How much has the price of non-yielding bullion dropped since the start of the war in the Middle East?**
    The price of non-yielding bullion has dropped more than 11% since the war began in late February.

    **How might the U.S. Consumer Price Index impact the price of gold?**
    If the U.S. Consumer Price Index prints come in hotter than expected, it could result in more downward pressure on gold prices, with the Federal Reserve being forced to maintain high benchmark rates for a longer period.

  • Vietnams Gold Plunge Continues Amidst Rising Inflation Concerns and Middle East Tensions

    Vietnams Gold Plunge Continues Amidst Rising Inflation Concerns and Middle East Tensions

    The price of gold in Vietnam continued to decline on Monday, with reductions seen throughout the day following an initial drop of nearly 1% earlier in the day. Saigon Jewelry Company, a prominent gold retailer, noted a further 0.42% decrease in its gold bar price from the morning, ultimately tallying a total loss of 1.37% for the day. The quoted price of gold per tael (equivalent to 37.5 grams or 1.2 ounces) fell to VND165.2 million, equivalent to US$6,276.26.

    Local Rates Versus Global Prices

    In comparison, local gold prices in Vietnam exceed international gold rates by approximately VND17 million per tael. The price of a gold ring also saw a similar decrease, falling to VND164.7 million per tael.

    Internationally, gold prices fell by 1% on Monday in response to escalating geopolitical tensions. The refusal of President Donald Trump to accept Iran’s recent peace proposal to end ongoing conflicts in the Middle East has raised fears of inflation and a continued period of high interest rates. This sentiment has been reflected in the gold market, with spot gold falling to $4,667.99 per ounce following a 2% increase last week. Concurrently, U.S. gold futures for June delivery saw a drop of 1.1%, hitting $4,677.80.

    Market Reactions and Predictions

    Market observers note the significant impact of these geopolitical developments on inflation risks and market expectations. Bybit’s Chief Market Analyst, Han Tan, highlighted that the stalled peace negotiations have weighed heavily on the market’s psyche, maintaining high interest rate expectations and amplifying pressure on non-yielding gold. Since the conflict’s inception in late February, gold has seen a decline of more than 11%.

    Tan further suggested that gold could face additional downward pressure if the U.S. Consumer Price Index (CPI) forecast for the following day proves hotter than anticipated. This situation could necessitate the Federal Reserve maintaining elevated benchmark rates for an extended duration.

    Questions & Answers

    Why did Vietnam’s gold prices drop on Monday?
    The gold prices in Vietnam dropped due to international gold prices falling by 1% in response to increasing geopolitical tensions and the current conflict in the Middle East.

    What are the implications of high inflation and interest rates on the gold market?
    High inflation and interest rates put pressure on non-yielding bullion, causing its price to drop. The gold market has seen a decline of more than 11% since the conflict began in late February.

    What could cause further downward pressure on gold prices?
    If the U.S. Consumer Price Index forecast proves hotter than anticipated, the Federal Reserve may need to maintain elevated benchmark rates for a longer period. This scenario could exert additional downward pressure on gold prices.

  • Gold Prices Tumble Worldwide Amid Oil-Inflated Inflation Fears: How Vietnam is Weathering the Precious Metal Dip

    Gold Prices Tumble Worldwide Amid Oil-Inflated Inflation Fears: How Vietnam is Weathering the Precious Metal Dip

    On Thursday afternoon, gold prices in Vietnam reflected a downward trend, triggered by a global market decline for the precious metal. This drop is linked to fears that escalating oil prices would cause a surge in inflation.

    Gold Bar and Ring Prices Drop

    The Saigon Jewelry Company reported a 1.15% decrease in the price of their gold bars, now valued at VND171.5 million, or US$6,508.79 per tael. To clarify, a tael is equivalent to 37.5 grams or 1.2 ounces.

    In addition, there was a similar 1.15% decrease in the price of gold rings, bringing the associated cost to VND171.3 million per tael. Despite these recent drops, gold prices have seen an overall increase of 12.2% since the start of the year.

    Global Gold Price Decline

    On the international stage, gold prices also fell on Thursday. There are heightened expectations of imminent U.S. Federal Reserve rate hikes this year, primarily sparked by rising oil prices causing concerns about inflation. Investors also awaited clarity on efforts to de-escalate situations in the Middle East.

    Spot gold, in particular, experienced a drop of 1.2%, reducing its price to $4,451.47 per ounce. Concurrently, U.S. gold futures for April delivery saw a decrease of 2.3%, to $4,448.

    According to Ilya Spivak, head of global macro at Tastylive, these changes can be attributed to an acceleration of the perception that inflation, potentially triggered by ongoing conflict, will prompt a response from central banks, leading to higher interest rates.

    Impact on Crude Oil Prices

    Furthermore, Brent crude futures have risen above $100 per barrel due to concerns that ongoing conflict in the Middle East may continue to disrupt energy flows.

    Questions & Answers

    What caused the recent decrease in gold prices in Vietnam?
    The reduction in gold prices can be attributed to concerns that escalating oil costs could lead to inflation, influencing global gold markets.

    How has the ongoing Middle Eastern conflict affected gold and oil prices?
    The ongoing conflict has elevated concerns about potential disruption in energy flows. As a result, Brent crude futures have increased, while anticipation of these disruptions has contributed to a fall in gold prices.

    What are the potential impacts of rising inflation on global gold markets?
    Rising inflation can lead to an increase in interest rates as a reactive measure from central banks, which can result in a decline in gold prices.

  • US Dollar Skyrockets Against Vietnamese Dong Amid Global Inflation Fears and Iran Conflict Developments

    US Dollar Skyrockets Against Vietnamese Dong Amid Global Inflation Fears and Iran Conflict Developments

    On Tuesday morning, the U.S. dollar experienced an unexpected surge against the Vietnamese dong in the black market trading. The greenback appreciated by 0.74%, hitting a record high of VND27,390 at unofficial exchange platforms.

    Maintaining the Rate

    Despite the fluctuation in the black market, Vietcombank decided to keep its exchange rate steady at VND26,321.

    Global Market Influence

    Globally, the behavior of the U.S. dollar was somewhat uncertain on Tuesday. Traders were contemplating the potential implications of the evolving conflict in Iran. Meanwhile, the Australian dollar weakened marginally in anticipation of a potential rate hike by the nation’s central bank later in the day.

    The euro dropped 0.12%, falling to $1.1492 during the Asian trading session. Sterling also declined slightly by 0.1%, trading at $1.33. This slight decrease offset the substantial gains earned during the previous trading session. The dollar index, a measure of the U.S. dollar relative to a basket of foreign currencies, remained relatively stable at 99.913.

    Impact of Surging Oil Prices

    The escalation of oil prices, triggered by the U.S. and Israel’s attack on Iran, has raised concerns about inflation among investors. This anxiety has led to a drastic reevaluation of rate outlooks worldwide. Consequently, the U.S. dollar has appreciated against a majority of global currencies.

    Questions & Answers

    What caused the surge in the U.S. dollar against the Vietnamese dong?
    The surge in the U.S. dollar against the Vietnamese dong was primarily driven by the uncertainty surrounding the Iran conflict and the expected rate hike from Australia’s central bank.

    What was the impact of the surging oil prices on the global currencies?
    The surging oil prices, due to the U.S. and Israel’s attack on Iran, have raised global inflation concerns among investors. This has triggered a significant reevaluation of rate outlooks, strengthening the U.S. dollar against most global currencies.

    How did the euro and sterling perform during the Asian trading session?
    During the Asian trading session, the euro fell 0.12% to $1.1492, and sterling also saw a slight decrease of 0.1%, trading at $1.33.

  • U.S. Dollar Ascends to Year’s High Against Key Currencies Amid Oil Price Surge & Inflation Fears

    U.S. Dollar Ascends to Year’s High Against Key Currencies Amid Oil Price Surge & Inflation Fears

    The United States dollar achieved a rise against the Vietnamese dong on Thursday morning, while concurrently reaching peak levels this year against other major currencies. The Vietnamese bank, Vietcombank, increased the dollar’s rate by 0.01%, setting it at VND26,314.

    Greenback Performance in the Informal Market

    In contrast to its performance with Vietcombank, the US dollar, informally known as the greenback, recorded a slight decline of 0.18% on the informal market, bringing it down to VND27,910.

    The Dollar’s Global Strength

    On the international front, the greenback maintained its position as a safe-haven currency, staying close to its most robust levels of the year. This strength comes in the wake of rising oil prices, which threaten to trigger inflation and compel central banks worldwide to adopt a more bullish policy stance.

    Performance Against Other Currencies

    The euro experienced a minor fall of 0.1% against the greenback, with an early Asian trading rate of $1.1549, which is nearing its lowest level since November.

    Japan’s yen also saw a decline, dipping below the 159-per-dollar mark, with a decrease of up to 0.2% to 159.23. This trend brings the yen close to its weakest level since July 2024.

    Meanwhile, the Australian dollar and the New Zealand dollar each fell by 0.1%, recorded at $0.7148 and $0.5907 respectively.

    Questions & Answers

    What was the performance of the US dollar against the Vietnamese dong?
    The US dollar rose against the Vietnamese dong on Thursday morning.

    How did the greenback perform on the informal market?
    On the informal market, the greenback recorded a slight decline of 0.18%.

    How has the rise in oil prices affected the US dollar?
    The rising oil prices threaten to trigger inflation, which in turn has kept the US dollar close to its strongest levels this year as central banks worldwide may be compelled to adopt a more bullish policy stance.

  • US Dollar Soars to Year’s Peak Against Major Currencies, Dodging Inflation Threats”

    US Dollar Soars to Year’s Peak Against Major Currencies, Dodging Inflation Threats”

    The U.S. dollar experienced a surge against the Vietnamese dong on Thursday morning, while oscillating around its apex value against significant international currencies this year.

    Vietcombank, a prominent banking institution, reported a minor increase of 0.01% in the value of the dollar, selling it at a rate of VND26,314.

    Contrarily, the U.S. dollar dipped slightly by 0.18% to VND27,910 in the unofficial currency exchange market, also known as the black market.

    Thursday witnessed the U.S. dollar, a popular refuge during periods of financial instability, hovering near its most robust position for the year. This trend was driven by the rising oil prices, which are predicted to escalate inflation and compel central banks around the world to espouse more assertive monetary policies.

    In early Asian trading, the euro experienced a slight decline of 0.1% against the dollar, going down to $1.1549. This brought the euro close to its lowest value since November of the previous year.

    Similarly, the Japanese yen saw a momentary fall, surpassing the 159-per-dollar mark. It depreciated as much as 0.2%, reaching 159.23. This puts the yen on the brink of its most diminished value since July 2024.

    The Australian dollar and the New Zealand dollar also observed declines, both slipping by 0.1%, with the former valued at $0.7148 and the latter at $0.5907.

    Questions & Answers

    What factors influenced the rise in the value of the U.S. dollar?
    The uptick in the value of the U.S. dollar can be attributed to the increasing oil prices, which are expected to instigate inflation and cause global central banks to adopt a more aggressive policy stance.

    How did the rise in the U.S dollar affect other major international currencies?
    The rise of the U.S dollar resulted in a slight depreciation of several international currencies such as the Vietnamese dong, the euro, the Japanese yen, the Australian dollar, and the New Zealand dollar.

    What was the selling rate of the U.S. dollar in the black market?
    In the black market, the U.S. dollar saw a nominal decline, with its rate recorded at VND27,910.

  • New Zealand Grapples with Skyrocketing Cheese Prices Amid Rising Food Inflation

    New Zealand Grapples with Skyrocketing Cheese Prices Amid Rising Food Inflation

    Over the past year, food prices in New Zealand have witnessed a substantial rise of 4.7%, an increase from the 4.1% rise recorded in September, as reported by Stats NZ.

    Significant Rise in Grocery Prices

    The hike in food prices has been particularly noticeable in grocery items. A significant 25.5% increase was observed in the price of instant coffee, with an average price of NZ$7.88 (A$6.85) per 100 grams. The price of a 1kg block of cheese also reflected a 30.1% surge, costing $12.71 ($11.05).

    The highest rise was seen in the cost of grocery foods, with an annual increase of 4.9%. This was closely followed by the cost of meats, poultry, and fish, which rose by 7.6%.

    Heightened Dairy and Poultry Prices

    Stats NZ, the national statistical agency, provided additional data on the prices of dairy and poultry products. The average price of a two-litre bottle of milk rose by 13.5% over the year, reaching a price of $4.78 ($4.16).

    Similarly, the cost of a dozen fresh eggs also saw a significant annual increase of 18.5%, with the average price being $9.88 ($8.60).

    Questions & Answers

    What was the overall increase in food prices in New Zealand over the past year?
    Over the past year, there was an overall increase of 4.7% in food prices in New Zealand.

    Which food categories witnessed the highest price increases?
    Grocery food costs saw the highest increase at 4.9%, followed by meats, poultry, and fish prices, which increased by 7.6%.

    What was the price increase for dairy and poultry products?
    The average price of a two-litre bottle of milk increased by 13.5%, while the cost of a dozen fresh eggs saw an 18.5% increase annually.

  • Philippines’ baby food market to shrink by 4.5% annually until 2028

    Philippines’ baby food market to shrink by 4.5% annually until 2028

    The baby food market in the Philippines is expected to decline by 4.5% on average annually to reach $826.7m by 2028 as the government pushes for public access to contraceptives and family planning that resulted in childbirth rates.

    In a report, GlobalData said the rising inflation will also contribute to constraining spending on baby food products.

    “Demographic changes taking place with respect to the baby population and live birth rates, and the government’s measures to restrict the number of births coupled with an increase in the number of working women will contribute to a decline in the Philippines’ baby food market,” said Shraddha Shelke, consumer analyst at GlobalData.

    Within the sector, baby milk was the largest category in terms of value and volume in 2022, with a GlobalData survey showing 47% of 369 respondents saying they spent a very or quite high among on baby milk in the fourth quarter of the year. Around 43% also said they spent a high amount on baby food.

    Per capita expenditure on baby food in the country increased to $267.1 in 2022 from $204.1 in 2017 due to a high inclination for high-quality products, exceeding the regional level of $177.3 and $167.2 globally.

    But as the economy rebounds, following the high inflationary pressures, consumer spending is seen to recover in value sales and reach $271.2 by 2027.

    “The Philippine baby food market’s growth is tied to the economic fortunes of the country. The rising disposable income of Filipino families with babies will stimulate sales of premium and organic baby food products,” the analyst said.

    “To build a stable consumer base in the country amid changing demographic conditions, manufacturers should focus on offering affordable premium baby food products with value-added benefits,” Shraddha added.

  • VinFast ships first electric vehicles to US

    VinFast ships first electric vehicles to US

    VinFast had shipped its first batch of 999 cars to the U.S., capping a five-year bid to develop an auto production hub in Vietnam for markets in North America and Europe.

    The company said that the first cars are expected to be handed over to customers by the end of December.

    VinFast Chief Executive Le Thi Thu Thuy said some of the VF 8 electric SUVs being shipped on Friday would be sent to U.S. car subscription service Autonomy but the majority would go to retail buyers who have ordered the car.

    Thuy said VinFast expected to be able to ship a second batch of cars to the United States, its first export market, around January.

    VinFast is in the process of building an electric vehicle plant in North Carolina that is awaiting final regulatory approval from local officials.

    Thuy said the company expected to start production at the North Carolina factory from July 2024 and that electric vehicles built there would qualify for incentives under the terms of the Inflation Reduction Act signed by U.S. President Joe Biden.

    The Inflation Reduction Act, as currently written, requires automakers to have 50% of critical minerals used in EV batteries come from North America or U.S. allies by 2024, rising to 80% by the end of 2026.

    Major automakers have said those targets are unrealistic and it was not immediately clear how VinFast would meet the sourcing requirements.

    “The IRA came as a surprise to all of us but it doesn’t really impact our strategy in the U.S.,” Thuy told Reuters. “As soon as we start manufacturing cars in the U.S., our customers will be eligible (for) the tax incentive.”

    VinFast said last week that Autonomy had ordered 2,500 electric vehicles, its largest corporate order to date. VinFast has said it has almost 65,000 orders globally in total and expects to sell 750,000 EVs annually by 2026.

    The North Carolina factory project is running months behind schedule, based on the company’s initial targets, and the first shipment of EVs built by VinFast was short of the initial goal to deliver as many as 5,000 cars built at its factory in Haiphong by December.

    VinFast officials said the number 999 for the vehicles shipped in the first batch had been chosen because it is considered a lucky number in Vietnam.

    “There is no luckier number than 999,” Thuy said. The Panamanian-chartered transport ship used to send the first shipment of VinFast EVs had the capacity to carry up to 2,000 vehicles, officials said.

    Shares in VinFast’s listed parent company, Vingroup, which also has property and resort development businesses, were up 5.41% on Friday morning.

    Lees ook:

    Lees ook: