down. why is that? we have unemployment at 50 year lows, below 4%, and it comes down to inflation. it comes down to the fact that gasoline, $3.55 is the national average, but it goes down to what the perception is. they look across the board when they go to the supermarket, going to gas. the fact these businesses were able to drop prices like that, what does that tell you about why they raised them? they were able to maintain margins they did not have for a long time. groceries and businesses in that sector of the economy run on thin profit margins. ikea, walmart, walgreens, now mcdonald s, burger king they are all cutting prices. we are getting back to a normalize rate of inflation. the biggest problem, it s the overall level of prices. the increase from pre-2019 that
why is that? we still have unemployment at a 50 year low. it comes down to inflation and the fact that gasoline national averages $3.55. it goes back to their perception. they look across the board at the supermarket and gas and it adds up a lot more. the fact that these businesses were able to drop prices like that, what does that tell you about why they raised them? they were able to maintain margins they didn t have for a long time. grotius and other businesses in that sector generally run on very thin profit. ikea, walmart, costco and walgreens anomic donelson burger king and chipotle, they are all cutting prices. we are getting back to a normalized rate. the biggest problem, it is the overall level of prices. the increase from pre-2019 that has people upset.
is in itself contingent on the use of that land for building houses, and, of course, if the end clients for the way it is much more difficult for local governments to find themselves. so, there is a long chain of activities here that the chinese authority is struggling to put right. chinese authority is struggling to put risht to put right. well, let s stay with china to put right. well, let s stay with china because - to put right. well, let s stay with china because as - to put right. well, let s stay with china because as we i with china because as we mentioned in the next hour the people s bank of china will be reviewing its loan rates. the five and one year rates are in focus and the five year was last at five point 2% at the one year at a record low of 3.55% after a small reduction injune. it is a busy week for other central bankers in the us, europe and asia from the 24th to the 26th of august us fed host its symposium in wyoming which includes a speed from fed chairmanjerome
programme. let s look at some other stories making news. china s central bank has cut one of its key interest rates for the second time in three months as the world s second?largest economy struggles to bounce back from the pandemic. the people s bank of china lowered its one?year loan prime rate to 3.45% from 3.55%. the country s post? covid recovery has been hit by a property crisis, falling exports and weak consumer spending. civil servants in indonesia s capital, jakarta, have been instructed to work from home as part of measures aimed at reducing traffic congestion and severe air pollution. around 50?percent of government office workers have switched to home working. more government workers are expected to start working from home next month. jakarta is consistently ranked amongst the most polluted cities in the world. north korea has cancelled its first commercial flight in over three years.
struggling to put it right. as we mentioned the people s bank of china will be reviewing its loan prime rates. these are used as references for mortgages and loans to businesses. the five and one year loan prime rate rn figures. the five year was the last of 4.2% and a one year at a record low of 3.55% after a small reduction injune. it is also a busy week for other central bankers in the us, europe and here and asia. later in the week many will be attending an annual bankers meeting in the united states. from the 24th two the 26th of august the us fed hosts its annual economic symposium in jackson hole wyoming, which includes a speech from chairman jerome powell. south korea s central bank then reviews its benchmark interest rates, currently at three and half percent and there are suggestions by analysts that it could become one of the first central banks here in asia to