PS US Fed chair Jerome Powell is testifying to lawmakers - you can watch here.
Watch Powell's testimony to Congress on the Fed's inflation fight, state of the economy https://t.co/Yuy6vzysmV
— CNBC (@CNBC) June 22, 2022
Updated
Closing summary
Wall Street opened lower ahead of Federal Reserve chair Jerome Powell’s semi-annual monetary policy report in Congress, with investors eager for clues on future interest rate hikes and the state of the economy.
Over here, the UK’s FTSE 100 index is trading almost 100 points lower at 7,058, a 1.3% drop. Germany’s Dax has lost 233 points, or 1.75%, to 13,059, France’s CAC has slid 91 points, or 1.6%, to 5,870, and Italy’s FTSE MiB is down 386 points, or 1.75%, at 21,704.
Our main story today:
UK inflation has increased to 9.1%, its highest rate in 40 years amid record prices for petrol and the soaring cost of food.
The figures from the Office for National Statistics showed an increase in May from 9% in April, as measured by the consumer price index, in a reading that matched the forecasts of City economists. In a fresh high, the headline inflation rate has hit a level not seen since early 1982, piling pressure on households in the cost of living crisis.
Inflation is being fuelled by food and non-alcoholic drink prices, which are rising at the fastest annual rate since 2009, the ONS said, with the most dramatic increases seen in the cost of bread, cereals and meat.
Our other stories:
The Boston-based biotech Moderna is to build the UK’s first research and manufacturing centre dedicated to the development of mRNA vaccines against new Covid variants and other respiratory illnesses, in an effort to improve readiness for future pandemics.
Under a £1bn deal with the UK government, construction of the new centre – Moderna’s first facility in Britain – could begin later this year and is expected to start producing the first shots in 2025. The government has committed to buying Moderna’s vaccines for the next decade.
The jabs are based on messenger RNA, the molecule that teaches our cells to make specific proteins that will trigger an immune response inside our bodies. Moderna developed one of two mRNA vaccines worldwide against Covid-19, alongside the one produced by Germany’s BioNTech and US firm Pfizer.
Moderna’s chief executive, Stéphane Bancel, said the priority was to develop a jab combining boosters against Covid, flu and respiratory syncytial virus (RSV). RSV usually causes mild, cold-like symptoms but can be serious for infants and older people.
Thank you for reading. We’ll be back tomorrow. Take care, JK
