Even the Bank of Japan, which has stuck to its ultra-loose policy despite price pressures this year, is now expected to abandon negative interest rates

China's consumer prices returned to positive territory while factory-gate price declines slowed, pointing to signs of stabilisation in the economy

Latest figures suggest domestic demand is still frail in China and more stimulus may be needed to boost a patchy post-Covid economic recovery

IMF Asia-Pacific director Krishna Srinivasan said inflationary pressures are rising due to a global surge in food and fuel costs caused by the war in Ukraine

The downbeat report comes a day before recently appointed Treasurer Jim Chalmers updates the previous government's budget forecasts

The nationwide core consumer price index (CPI), which excludes volatile fresh food costs but includes those of energy, rose 2.2% in June from a year earlier

China continues to buck global trends, with inflation slowing as reopening increases production and eases supply chain bottlenecks.

President Joe Biden is unlikely to announce a decision until after he speaks to Chinese leader Xi Jinping - a planned call that is yet to be scheduled, his chief spokeswoman said

The consumer price index grew by a slightly faster-than-expected 6.0% in June over a year earlier, the highest since November 1998, data showed on Tuesday

He said that without the Chinese market - which accounted for 3.3 million VW sales last year, including its electric ID.4 model - inflation would explode

Bank for International Settlements advised that interest rates should be raised "quickly and decisively" to prevent the surge in global inflation turning into a bigger crisis.

Inflation at the retail level has remained above the central bank's tolerance band of 2-6% for five months in a row, even though it eased marginally in May