a far cry from the 9% we saw in june but there are warnings of a possible recession or the pipelines our business reporter katie silva has been looking into the details of the story for us. it is always great to see you on asia business report at the seems like relatively good doesn t it? fit at the seems like relatively good doesn t it? of course. as we mentioned good doesn t it? of course. as i we mentioned a huge drop since lastjune. 5% inflation down from 6%, its well and truly been welcomed in high quarters, president biden saying it gives american families some breathing room in particular pointing to the fact that we ve seen the greatest reduction in the costs of gas as well as food and grocery expenses, things that are very important to american families. but the excitement should be tempered somewhat. up was the us like many major economies pursues an inflation target of 2% so 5% is still a long way off that and if we were to take out those impacts of the fuel and
are expected to be in a recession, 0.4 gdp growth and it should take about two years to get out of it, what this is suggesting is that the continuation of raising interest rates despite this is showing that it seems to be on the same song sheet that we have been hearing from the international monetary fund that their spring meeting, yesterday we heard them calling on central banks around the world to continue the pressure, to continue to hike interest rates to maintain inflation and to prioritise that over financial stability, that is banks. so it seems that the federal reserve and the banks are singing from the same song sheet when it comes to maintaining price stability overfinancial maintaining price stability over financial stability. let s ho -e it over financial stability. let s hepe it is over financial stability. let s hepe it is a over financial stability. let s hope it is a merrier - over financial stability. let s hope it is a merrier tune - over financial stability. let
towards an escalation between china and the us over taiwan? signs of inflation slowing in the will s largest economy but fears of a recession in the us are growing. plus the world bank is set for a leadership change at a time when it s under pressure from world leaders. analysis on what is next for the institution. hello and welcome to asia business report, i m karishma vaswani. we start this morning and the will s largest economy, the united states, where inflation has dropped to its lowest level for nearly two yea rs. lowest level for nearly two years. consumer prices rose by 5% in the year to march, that s