Asian shares were down for a sixth straight session on Tuesday after a renewed spike in European energy prices stoked fears of recession and pushed bond yields higher, while tipping the euro to 20-year lows.
British consumer price inflation is set to peak at 18% - nine times the Bank of England's target - in early 2023, an economist at U.S.
Oil prices are set in dollars, so any rise in the currency makes barrels more expensive for importers using other currencies.
British households are feeling "a sense of exasperation" about the surging cost of living which has pushed consumer sentiment to its lowest since at least 1974, according to the country's longest-running survey of household finances.
Britain's opposition Labour Party said parliament should be recalled on Monday to freeze energy bills for the winter as the country deals with the worst cost-of-living crisis in decades.
British two-year government bond yields surged on Wednesday to their highest level since the depths of the global financial crisis almost 14 years ago as stronger-than-expected inflation data fuelled bets on further Bank of England interest rate hikes.
The Bank of England warned earlier this month that UK inflation would climb to just above 13 percent this year, which would be the highest level since 1980.
British consumer price inflation jumped to 10.1% in July, its highest since February 1982, up from an annual rate of 9.4% in June, intensifying the squeeze on households, official figures showed on Wednesday.
China's central bank is set to take more easing steps, pressured by a shaky economy that is undercutting jobs, but it faces limited room to manoeuvre due to worries over rising inflation and capital flight, policy insiders and analysts said.
U.S. inflation at a four-decade high has hit lower-income Americans the hardest. On Tuesday, Walmart's results showed that those with bigger wallets are getting squeezed, too.
Walmart Inc nudged up its annual profit forecast on Tuesday, partly reversing a hefty cut less than a month ago, as discounts to clear excess merchandise and lower fuel prices helped it beat expectations for quarterly sales.
A sharp rebound in Israel's economic activity and a jump in annual inflation have made a 0.75-point interest rate increase more likely next week, analysts said on Tuesday.
Stood on her hind legs to greet any prospective owner who might approach her glass-doored kennel, Harriet is a black English cocker spaniel abandoned as a deepening cost-of-living crisis pushes growing numbers of Britons to part with their pets.
Britain's main opposition Labour Party will call for the energy price cap to be frozen this autumn, a party source said, to help the public deal with another expected surge in energy bills during the worst cost-of-living crisis in decades.
India's consumer inflation dipped to 6.71% in July, easing for the third month in a row, helped by a slower increase in food and fuel prices and adding to expectations that the central bank may rein in the pace of its policy rate hikes next month.
European stock markets and the dollar fell Wednesday ahead of a crucial US inflation report that could help set the the pace of future interest rate hikes by the US Federal Reserve.
Germany will offer tax relief worth 10 billion euros ($10.2 billion) to help workers cope with soaring inflation.
US inflation eased slightly in July.
Most markets rose Tuesday but investors moved cautiously ahead of US inflation data later in the week.
In Canada's remote north, residents have long paid dearly for food, and rising prices have worsened an already dire situation, exposing the vulnerability of one of the world's biggest exporters of grains and meat.
The State Secretariat for Economic Affairs official said the help for businesses during the Covid-19 pandemic could not become the norm during economic downturns.
The Bank of England is expected to raise interest rates by the most since 1995 on Thursday, even as the risks of a recession mount, in an attempt to stop a surge in inflation from becoming embedded in Britain's economy.
