- India's inflation accelerated to a 13-year high and stocks and bonds fell on concern the central bank will have to raise interest rates again. Wholesale prices jumped 11.05 percent in the week to June 7, after gaining 8.75 percent in the previous week
- India increased retail prices of gasoline and diesel this month, joining China, Indonesia, Malaysia and Sri Lanka, as a near doubling of crude oil prices pushed up costs
- China, the world's second-biggest oil-consuming nation, unexpectedly raised gasoline and diesel prices by at least 17 percent and increased power tariffs to rein in energy use, potentially driving up inflation.
Implications: Chinese refiners gained, airlines fell on narrowing margins.
Crude prices tumbled more than $4 a barrel on Thursday after the unexpected announcement that China would increase petrol and diesel prices by 18%.
- German producer-price inflation, an early indicator of price pressures in the economy, accelerated to the fastest pace in almost two years in May on energy costs.
- Mexico has frozen the price of 150 basic foods to curb inflation, in the government's biggest set of price controls in more than a decade.
Next week:
Wimbledon - 23 Jun
US June Consumer confidence - 24 Jun
US FOMC meeting - 25 Jun
Eric Tan, London
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