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LONDON — British unemployment held close to its historical low but wages continue to be outstripped by rampant inflation, official data showed on Tuesday.

The unemployment rate was unchanged at 3.7 per cent in the three months to the end of December compared with the three months to the end of November, the Office for National Statistics (ONS) said.

Wages excluding bonuses rose 6.7 per cent in the same period — but sank 2.5 per cent when inflation is taken into account.

"Overall pay... continues to be outstripped by rising prices," said ONS Economic Statistics Director Darren Morgan.

In recent months, strikes have multiplied across Britain — particularly in the communication, education, transport and health sectors — as workers protest at pay that has fallen in value.

A total of 843,000 working days were lost to walkouts in December, which was the highest since November 2011, the ONS added on Tuesday.

The news comes on the eve of official UK inflation data for January.

Inflation had slowed slightly to 10.5 per cent in December.

However, the rate remains close to a four-decade high, propelled by surging energy bills after key gas producer Russia invaded Ukraine almost one year ago.

Britain's economy narrowly avoided recession with zero growth in the fourth quarter, recent data showed.

But Finance Minister Jeremy Hunt has warned it is "not out of the woods yet", particularly where inflation is concerned.

STRASBOURG — The European Parliament on Tuesday gave its final approval to a ban on new sales of carbon-emitting petrol and diesel cars by 2035, with a view to getting them off the continent's roads by mid-century.

European Union member states have already approved the legislation and will now formally nod it into law at an upcoming ministerial meeting, despite opposition from conservative MEPs, the parliament's biggest group.

Supporters of the bill had argued to that it would give European carmakers a clear timeframe in which to switch production to zero-emission electric vehicles, and spur investment to counter competition from China and the United States. 

This, in turn, will also support the European Union's ambitious plan to become a "climate neutral" economy by 2050, with net-zero greenhouse gas emissions.

"Let me remind you that between last year and the end of this year China will bring 80 models of electric cars to the international market," EU Vice President Frans Timmermans warned MEPs.

"These are good cars. These are cars that will be more and more affordable, and we need to compete with that. We don't want to give up this essential industry to outsiders."

But opponents argued that neither European industry nor many private motorists are ready for such a dramatic cut off in production of internal combustion engine vehicles — and that hundreds of thousands of jobs are at risk.

"Our proposal is... to let the market decide what technology is best to reach our goals," said MEP Jens Gieseke, a member of the centre-right European People's Party.

Gieseke declared that arguments from Green and socialist MEPs that electric cars are cheaper to run had been rendered "null and void" by the crisis of soaring energy costs.

"In Germany 600,000 people work on ICE production, those jobs are at risk," he declared, urging the European Commission to rethink plans to also extend the ban to trucks and buses.

The EPP group warned of what it said would be the "Havana effect" — Europeans continuing to drive vintage fuel-burning cars after new sales are banned because they can't find or afford an electric.

Opponents also argue car batteries are produced abroad by Europe's competitors like the United States, but Timmermans argued that thanks to EU-backed investment European production would increase. 

Green MEPs stressed the importance of the ban in reducing emissions and pollution.

Victory for the planet? 

Karima Delli, president of the transport committee, declared: "Today's vote is a historic vote for the ecological transition. 

"We will no longer, or almost no longer, have petrol or diesel cars on our roads in 2050 ... it is a victory for our planet and our populations"

Cars currently account for about 15 per cent of all CO2 emissions in the EU, while transportation overall accounts for around a quarter.

In October last year, EU member states, the European Commission and parliament's negotiators agreed on a proposal to reduce CO2 emissions from new cars in Europe to zero by 2035.

In practice, in the final legislation, this means a halt to sales of new petrol and diesel cars, light commercial vehicles and hybrids in the bloc by that date, in favour of all-electric vehicles.

US green subsidies 

Car-making giant Germany and conservative MEPs have been dubious about the new rules, fearing the burden of re-tooling their plants and retraining workers while global rivals have looser targets.

But the European car industry itself did not lobby hard against the law, with many firms already jockeying for position in the race to become electric vehicle giants. 

Since the law began its journey through the EU legislative process, however, the United States has unveiled a huge plan to subsidise the green transition of its own industry with government hand-outs. 

This has led to fears in Europe that its US rival will siphon away investment and jobs in electric vehicle and battery production. 

Currently around 12 per cent of new cars sold in the European Union are electric, with consumers shifting away from CO2-emitting models as energy costs and greener traffic regulations bite.

Meanwhile, China — the world's biggest automobile market — wants at least half of all new cars to be electric, plug-in hybrid or hydrogen-powered by 2035.

The law passed the Strasbourg assembly by 340 votes to 279, with 21 abstentions.

GABORONE — Botswana's President Mokgweetsi Masisi on Sunday warned that his country may sever ties with diamond giant De Beers if talks to renegotiate a sales deal prove unfavourable to his government.

The country is Africa's leading diamond producer, and Masisi called on the nation to rally behind his government as it tries to hammer out a better deal.

A 2011 sales agreement governing terms for the marketing of diamonds produced by Debswana — a 50-50 joint venture between the government and De Beers, which auctions most of the gemstones — was set to end in 2021.

It was extended by the parties citing the outbreak of coronavirus as the reason for the delay to conclude negotiations and it will run through June 30, 2023.

"If we don't achieve a win-win situation each party will have to pack its bags and go," Masisi said at a rally of his ruling Botswana Democratic Party (BDP) in his home village, Moshupa, about 65 kilometres from the capital Gaborone.

Masisi said he was kickstarting the campaign for the 2024 legislative election, adding that Botswana was facing a "Goliath" as far as the negotiations were concerned.

Under the 2011 agreement De Beers sold 90 per cent of diamonds while Botswana auctioned 10 per cent through its Okavango Diamond Company. In 2020, Botswana's share was raised to 25 per cent.

Now "we got insight into how the diamond market works and we discovered that we had been receiving less than what we should get," said Masisi, who spoke both in English and the local Tswana language.

"We also discovered that our diamonds are making a lot of profit and that the (2011) agreement had not been beneficial to us". 

"We are upping the stakes because we want a larger share from our diamonds. It can't be business as usual," he warned. 

AMMAN — Gold prices in the local market are stable despite low demand, according to the General Syndicate of Owners of Trade and Jewellery Shops.

"Weak supply and demand in local markets is due to the uncertainty in the rise and fall of gold prices, which made buyers quite cautious and hesitant; we cannot deny that the decline in sales during the winter season is owed to a lack of many social occasions," reported Al Rai Arabic daily, citing the spokesperson of the syndicate. 

The gold trade in the Kingdom's local markets remains weak. On the other hand, the pace of trade will get back to normal after the holy month of Ramadan, the spokesperson said.

The demand for gold will increase in accordance with the holidays and the summer season, he added. 

The spokesperson urged those who are interested in investing to buy gold.

He also advised investors to buy jewellery manufactured locally. 

Citizens are urged to buy from licensed jewellers and to always ask for a official stamped receipt when making a purchase. 

AMMAN — The Department of Statistics on Sunday issued its monthly report, in which it revealed that the Consumer Price Index, an inflation measure, rose by 3.77 per cent in January, scoring 107.62 points in comparison with 103.71 for the corresponding period in 2021, the Jordan News Agency, Petra, report.

Fuel and lighting prices topped the list of drivers increasing the Kingdom’s CPI, recording a contribution of 31.82 per cent.

Culture and entertainment contributed to 10.40 per cent, followed by dairy produce and eggs with 7.88 per cent, rents with 5.17 per cent and transportation with 2.39 per cent. 

AMMAN — The 2022 total producer price index for industrial products increased by 13.97 per cent, reaching a current level of 141.72, compared with 124.34 in 2021, the Jordan News Agency, Petra, reported. 

In its monthly report, the Department of Statistics revealed that the most prominent industrial groups leading to the increase included manufacturing industries, with a contribution of 13.90 per cent and relative importance of 86.01 per cent. Extractive industries’ contribution stood at 34.17 per cent with a relative importance of 28.2 per cent.

In contrast, the energy price index decreased by 7.75 per cent, with a relative importance of 5.76 per cent.

According to the report, the industrial producer price index for December 2022 rose to 139.48 compared with 132.32 for the same period in 2021, marking an increase of 5.41 per cent. 

The most prominent industrial groups leading to this increase included manufacturing industries, with a contribution standing at 4.41 per cent and a relative importance of 86.01 per cent as well as extractive industries with a contribution of 28.55 per cent and a relative importance of 28.2 per cent.

In contrast, the energy price index decreased by 8.47 per cent, with a relative importance of 5.76 per cent.

LONDON — Britain's economy has narrowly avoided recession, official data showed on Friday, but finance minister Jeremy Hunt warned it was "not out of the woods yet" over surging inflation.

Gross domestic product registered zero growth in the final quarter of last year, in line with expectations after shrinking 0.3 per cent in the previous three months, the Office for National Statistics (ONS) said.

Britain's flat growth in the fourth quarter contrasted with Europe's biggest economy Germany, whose GDP shrank 0.2 per cent in the same period on fallout from the Russian invasion of Ukraine.

Overall, the UK economy expanded 4.1 per cent last year after growth of 7.4 per cent in 2021, the ONS added in a statement.

Sky-high consumer prices have sparked a cost-of-living crisis in Britain — and mass strikes.

Transport walkouts weighed on December's output, the data showed.

"We are not out the woods yet, particularly when it comes to inflation," Hunt said, but he noted that "our economy is more resilient than many feared".

'No celebrating in street' 

The technical definition of a recession is two straight quarters of negative growth.

"While we can't slap the badge of recession on the economy, it's clear the UK is struggling and everyone is feeling the effect of the malaise in the country's economy," said AJ Bell analyst Laura Suter.

"This economic no-man's land of no contraction or no growth won't have people celebrating in the street."

Bank of England (BoE) governor Andrew Bailey on Thursday expressed concern over persistently high inflation even if the rate of price increases shows signs of cooling.

His remarks to a cross-party committee of MPs raised expectations of more hikes to British interest rates, analysts said.

At its most recent regular monetary policy meeting last week, the BoE hiked its interest rate for a 10th time in a row as global authorities race to combat runaway inflation.

The bank lifted UK borrowing costs by a half-point to 4 per cent, the highest level since late 2008 during the global financial crisis.

That ramped up mortgage and other loan repayments, weighing heavily on economic activity and worsening the cost-of-living crisis.

Those who have spare cash to save, however, are gaining from rate rises.

Soaring inflation 

UK inflation slowed to 10.5 per cent in December — still around 40-year highs and more than five times the BoE's official target-level of two percent.

Central banks the world over are seeking to cool high energy and food prices, fuelled by Russia's invasion of Ukraine one year ago, by hiking interest rates.

Conservative Prime Minister Rishi Sunak, whose government is partially subsidising energy bills for businesses and households, has vowed to halve UK inflation this year — although much is down to central bank policy and market forces.

Sunak is seeking to turn around his government's currently dismal fortunes before a general election expected next year.

The Conservatives — in power since 2010 — are trailing the main opposition Labour party by wide margins, polls show.

Recession still looms — the BoE last week said the UK economy would shrink in every quarter of 2023. 

"We suspect the drags from high inflation and high interest rates will trigger a recession this year," Capital Economics analyst Paul Dales said Friday.

The International Monetary Fund delivered another blow to Sunak when it predicted the UK would be the only country in the group of seven rich nations with negative growth in 2023.

The UK in 2020 suffered the biggest contraction among the G-7 owing to Covid fallout. The nation is also the only G-7 member that has not yet returned to its pre-pandemic level of output.

British economic activity is 0.8 per cent below its 2019 level, the ONS confirmed on Friday.

KARACHI — Pakistan's government on Thursday remained locked in crunch talks with the IMF over the release of a crucial financial bailout on the last scheduled day of the global lender's visit. 

An International Monetary Fund (IMF) delegation landed in Islamabad last week to thrash out tough conditions that Prime Minister Shehbaz Sharif called "beyond imagination".

Pakistan's economy is in dire straits, stricken by a balance of payments crisis as it attempts to service high levels of external debt amid political chaos and deteriorating security.

"The IMF is clearly asking for much more than what the government is willing to do, even with a little bit of arm twisting," said economic analyst Abid Hasan, a former adviser to the World Bank, in the capital Islamabad. 

"Both sides are waiting for the other to blink."

Finance Minister Ishaq Dar told reporters on Thursday that "a final round of talks is going on".

The IMF wants a boost to the pitifully low tax base, an end to tax exemptions for the export sector, and further hikes to artificially low petrol, electricity and gas prices meant to help low-income families.

It is also pushing for Pakistan to keep a sustainable amount of US dollars in the bank through guarantees of further support from friendly nations Saudi Arabia, China and the UAE, as well as the World Bank. 

"There is no deadlock", Pakistan Energy Minister Khurram Dastgir Khan told local media on Wednesday."Detailed and vigorous discussions have been held in the past 10 days."

"I have full hope that these talks will be concluded successfully."

Bowing to pressure 

Years of financial mismanagement and political instability have damaged Pakistan's economy — damage exacerbated by a global energy crisis and devastating floods that submerged a third of the country.

With the prospect of national bankruptcy looming, Islamabad in recent weeks began to bow to pressure, prompting the IMF's last-minute visit.

The government loosened controls on the rupee to rein in a rampant black market in US dollars — a step that caused the currency to plunge to a record low — and hiked petrol prices by 16 per cent.

A government official, who asked not be named, told AFP that the "IMF is not satisfied with the current prices of petroleum and energy".

Fears of a further price hike have seen hoarding in the country's largest province of Punjab, pushing the state minister Musadik Malik to report that the government had "no plans to increase the fuel price".

Meanwhile, struggling industries are battling for the government to unblock imports, with thousands of shipping containers held up at Karachi port.

The steel industry has warned the government that unless scrap metal imports are restarted, there will be a cascading effect on employment.

Pakistan had sketched out a $6.5 billion loan package with the IMF, which has so far paid out roughly half that amount.

MUMBAI — India's central bank slowed the pace of interest rate hikes on Wednesday but warned that core inflation in the world's fifth-biggest economy remained stubbornly high.

Central banks around the world yanked up borrowing costs last year to arrest soaring prices due to the Ukraine war, but many have now slowed the pace of rate hikes as inflation cools.

The Reserve Bank of India (RBI) on Wednesday raised the benchmark repurchase rate by 25 basis points to 6.5 per cent, the sixth and smallest increase since May when it stood at 4 per cent.

The move was in line with most analysts' expectations.

Most had also expected the RBI to change its policy stance from neutral to accommodative, meaning it would be the last hike in the current cycle, but bank governor Shaktikanta Das kept the door open for further tightening.

"Consumer price inflation in India moved below the upper-tolerance level during November and December 2022... core inflation, however, remains sticky," Das said in a webcast.

"Looking ahead, while inflation is expected to moderate in 2023-24, it is likely to rule above the 4 per cent target."

Das added that the outlook was clouded by "continuing uncertainties from geopolitical tensions, global financial market volatility, rising non-oil commodity prices and volatile crude oil prices".

The US Federal Reserve has reduced the size of its rate hikes in recent months, while the European Central Bank has remained hawkish.

Fed chairman Jerome Powell said on Tuesday that further tightening would be needed if data showed a strengthening jobs market, adding that inflation "has a long way to go".

Elsewhere in Asia, Malaysia's central bank in January kept rates unchanged, while Indonesia and the Philippines signalled they were nearing the end of their rate-hike cycles.

In India, consumer inflation eased to 5.72 per cent in December from 5.88 per cent in November, just below the RBI's upper band of 6 per cent. Inflation had soared as high as 7.79 per cent in April.

The South Asian nation of 1.4 billion people was the fastest-growing major economy, expanding at a pace of 8.7 per cent in the 2021-22 financial year.

But the booming economy is expected to have slowed — albeit to a still robust 7 per cent — for the financial year ending March 31, according to a forecast released by the National Statistics Office in January.

The Indian government said last week during its annual budget announcement it would cut income taxes and boost infrastructure and welfare spending, but also pare down the fiscal deficit ahead of national elections next year. 

BENGALURU — The energy industry must play a role in the campaign to tackle global warming, the president of this year's UN climate talks said on Tuesday, denying any "conflict of interest".

Sultan Al Jaber, who heads oil giant ADNOC and is the United Arab Emirates' special envoy for climate change, also called for "policies that are pro-growth and pro-climate".

"The energy transition will require every segment of society working together in an inclusive effort, and that surely means including the efforts of the energy industry," he told the India Energy Week conference in Bengaluru.

"It's not a conflict of interest, it is in our common interest to have the energy industry working alongside everyone on the solutions that the world needs."

Climate activists have criticised the decision to hold COP28 in the UAE, a major oil producer, and the choice of Jaber as the meeting's president.

The Gulf monarchy, which will host COP28 in Dubai in November and December, argues that oil remains indispensable to the global economy.

Jaber added that the energy transition could bring "the greatest leap in economic prosperity since the first industrial revolution".

"The world still needs hydrocarbons and will need them to bridge from the current energy system to the new one," he said. 

"We cannot unplug the current energy system before we have built the new one. As such, we must minimise their carbon footprint (and) only invest in the least carbon-intensive barrels".

Jaber promised to use his experience and connections to "convene the entire energy industry to speed things up".

COP27, held in Egypt in November, concluded with the adoption of a hotly contested text on aid to low-income countries affected by climate change, but failed to set new ambitions for lowering greenhouse gas emissions.

"We must eliminate energy poverty, while keeping 1.5 alive," said Jaber, referring to the goal of restricting global warming to 1.5ºC above pre-industrial levels.

"And we need to move from talking about goals, to getting the job done."