Bringing down high inflation around the world will be painful and could even crash growth but must be done quickly to prevent rapid price growth from becoming entrenched, the world's top central bank chiefs said on Wednesday.

Inflation is breaking multi-decade highs around the world as soaring energy prices, post-pandemic supply chain bottlenecks and in some cases red-hot labour markets are pushing up the cost of everything, and threatening to set off a hard-to-break wage-price spiral.

"The process is highly likely to involve some pain but the worst pain would be from failing to address this high inflation and allowing it to become persistent," U.S. Federal Reserve Chair Jerome Powell said at the European Central Bank's annual conference in Sintra, Portugal.

Echoing Powell's words, ECB President Christine Lagarde said the low inflation of the pre-pandemic era would not return and that the ECB, which has persistently underestimated price growth, had to act now because price growth was likely to remain above the 2% target for years to come.

RISKS

Engineering policy tightening to avoid a recession in the United States is certainly possible, Powell said, adding that the pathway was narrow and there were no guarantees of success.

"Is there a risk that we would go too far? Certainly there's a risk, but I wouldn’t agree that it's the biggest risk to the economy," he said. "The bigger mistake to make, let's put it that way, would be to fail to restore price stability."

Augustin Carstens, the General Manager at the Bank for International Settlements, an umbrella group of central banks, said policymakers had taken the first step in recognising they had a problem. Now their job was to tighten policy, as risks were mounting.

"They should try to... prevent the full transition from a low inflation environment to a high inflation environment where this high inflation gets entrenched," Carstens told the ECB gathering. "You need to prevent this vicious cycle from kicking in."

The ECB has already flagged rate hikes in both July and September while the Fed increased rates by 0.75 percentage points in June and may opt for a similar move in July.

The Bank of England raised rates by 25 basis points to 1.25% this month - its fifth successive move -and said it would act "more forcefully" in the future if it saw a greater persistence of inflation.

"There will be circumstances in which we will have to do more," BoE Governor Andrew Bailey told the conference. "We're not there yet in terms of the next meeting. We're still a month away, but that's on the table."

"But you shouldn't assume it's the only thing on the table," he said, referring to another 25 basis point hike.

However, Bailey also warned that the British economy was now clearly at a turning point and starting to slow.

SOURCE: REUTERS

A Mexican journalist was killed in the northern state of Tamaulipas on Wednesday, the newspaper he worked for said, the latest in a series of attacks in one of the world's most dangerous countries for media workers.

Antonio de la Cruz, a journalist for local newspaper Expreso, was gunned down in his home in the state capital Ciudad Victoria, the paper said.

His death comes after eight others in the media have been murdered in Mexico this year as a result of their journalism, according to human rights organization Article 19.

Presidential spokesperson Jesus Ramirez said on Twitter the journalist's daughter also was injured in the attack.

"We must not allow any more attacks on journalists and activists. These crimes will not go unpunished," Ramirez wrote.

The paper's parent company Expreso-La Razon demanded justice from authorities.

The Tamaulipas attorney general's office said in a statement it had opened an investigation into the incident and that police are collecting evidence and hunting for the attackers.

Violence against the press has skyrocketed during Mexican President Andres Manuel Lopez Obrador's administration, according to a report published by Article 19.

SOURCE: REUTERS

Islamabad: Pakistan has reported one death and 541 new COVID-19 cases during the last 24 hours, the highest since March 11 when it recorded 571 positive cases. 

According to the figures released by the National Institute of Health (NIH) on Wednesday, an uptick in new COVID-19 cases in Pakistan consistently continues as the country reported over 500 new daily cases for the first time in three months. 

Following the situation, the health ministry said that wearing mask has been made mandatory on all domestic flights, railways and public transport.  

The overall tally of the infected people climbed to 1,535,144 across Pakistan after adding the fresh cases.  

March 23 was the first day without any recorded deaths in Pakistan since the pandemic took hold in 2020. Official death figures are typically lower at weekends and holidays because of a lag in reporting.  

The health authorities have advised the people to restart following COVID related Standard Operating Procedures (SOPs) such as wearing face masks, sanitizing hands, and maintaining social distance.