UK inflation held steady at 2.8% in May, defying expectations of a rise. This suggests the Middle East conflict's impact on living costs may be less severe than feared, despite high fuel prices. Economists are downgrading inflation forecasts and questioning future interest rate hikes.
UK inflation remained at 2.8% in the year to May, unchanged from April. Transport costs saw the steepest rise, while food prices slightly decreased. Inflation is expected to continue climbing due to the Iran war's effects, with predictions of a peak between 3.5% and 4% in late 2026.
Southeast Asia is preparing for an extreme El Nino, expected by the WMO to emerge before August and last until November. This, combined with high energy, transport, and food costs linked to the Iran war, poses significant risks to the region's agricultural sector, particularly rice and palm oil, potentially triggering inflation and political instability.
Germany's national football team will cover transport costs for 600 fans to their final World Cup group match in New Jersey due to criticism of inflated prices for trains and buses during the tournament.
French holidaymakers are scaling back summer 2026 travel plans due to geopolitical tensions, energy crisis and inflation. Only 37% are certain they'll take holidays, down from 50% in 2025, while 71% will stay within France. Average holiday budget has dropped €150 to €1,530, with 60% planning to cut on-site spending.
Malaysia's durian exporters face mounting pressure as hot weather brings harvests forward, swelling supply while costs surge due to disrupted fuel supplies from the Iran conflict. Growers like Stephen Chow of Chow Kai Pheng Enterprise warn packaging and logistics costs could rise from 20% to 50% of export revenue, forcing cost-cutting measures at the worst possible moment.
Domestic flight bookings in China rose 8% year-on-year and package tours were up 10% ahead of Labour Day, even as jet fuel prices doubled. Travelers are making more value-conscious decisions, favoring rural destinations and short-haul regional trips over premium travel, according to China Trading Desk survey.
