Paris, France (AHN) – France registered an inflation rate of 2.4 percent in August, up from 2.1 percent in July.

It is the fastest rate of increase in almost three years following the jump in prices of manufactured goods and cost of energy. The 2.4 percent consumer price index rate was higher than economists’ expectation of 2.2 percent.

The rate was calculated on a harmonized European Union method.

Manufacturing goods prices rose 1.6 percent and energy prices went up 0.4 percent. However, food prices went down 0.2 percent due to a seasonal drop in fresh produce prices.

The European Central Bank raised key lending rates two times in 2011, but last week said the risk of recession is greater than the threat from inflation.

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Sao Palo, Brazil (AHN) – Brazil’s central bank cited a “substantial deterioration” in its outlook for the economy and unexpectedly announced a cut in its key interest to 12 percent from 12.5 percent.

Rising prices have been a problem in Brazil, and the central bank had raised its key interest rate five times this year in an effort to contain inflation.

However, inflation is still running at a six-year high of 7.1 percent.

The continued high inflation rate couple with the unexpected cut coming a few days after several politicians had called for a rate cut. Observers say it calls into question the central bank’s independence.

Brazil, which is the biggest economy in South America, grew at the rate of 7 percent last year. This year Brazil’s economy is expected to grow at the rate of 5 percent.

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Hanoi, Vietnam (AHN) – Inflation surged by 23 percent in Vietnam in August, the highest rate in Asia.

Vietnam’s consumer-price inflation index rose by 23.03 percent compared to the same period last year, according to the country’s General Statistics Office (GSO). In July, the CPI rose by 22.16 percent.

A representative for the General Statistics Office attributed the increases to higher prices for food and fuel, with prices for food and drink increasing by a whopping 34 percent. In addition, dollar-pegged currencies are causing more inflation in prices of many commodities as the U.S. dollar continues to weaken.

The increase in CPI came despite actions taken by the central bank and the government to tighten monetary and fiscal policy to curb inflation and stabilize the economy.

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Washington, D.C., United States (AHN) – More Americans continue to save in banks rather than borrow money from financial institutions. According to latest data from the Federal Reserve, savings in U.S. banks hit a record $1.45 trillion in May.

The growing savings has been observed since the global financial crisis in 2008.

A similar trend was observed in Japan, where the gap between savings and borrowing is at an all-time high.

Japanese banks use the money to purchase bonds to help keep yields the lowest in the world even if Tokyo has more outstanding debts than the U.S. and a lower credit rating.

Before 2008, U.S. deposits exceeded loans at an average of $100 billion.

Because of the worst recession experienced in the U.S. since the 1930s, consumers trimmed household debt to $13.3 trillion from the 2008 peak of $13.9 trillion. The reduction resulted in savings going up 4.9 percent of income from 1.7 percent in 2007.

For the same period, banks reduced lending amid over $2 trillion in losses and writedowns. Rather than grant more loans, American financial institutions instead bought Treasuries and government-related debt, which boosted their holding of such instruments to $1.68 trillion from $1.08 trillion in early 2008.

Economists forecast it would take the U.S. and Japanese economies at least a decade to extricate themselves from the mess of being a debt-ridden society.

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Some parts of Europe are experiencing a drought that is particularly severe in certain areas of England, France and Germany.

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Beijing, China (AHN) – China has agreed to end subsidies of its wind power manufacturers that use domestic parts instead of imports, which violate World Trade Organization (WTO) rules and give Chinese firms an unfair advantage over U.S. manufacturers.

A complaint to the WTO filed by the United Steelworkers prompted China’s move, according to U.S. .Trade Representative Ron Kirk.

The end of subsidies by China’s government provides a more level playing field for U.S. wind turbine manufacturers to compete with Chinese products.

Kirk also criticized China for evading its transparency commitments by failing to provide the WTO with information about its subsidy programs on a regular basis. He said that because China is the second largest WTO trader that it is not acceptable for China to evade providing the WTO with the information.

However, critics say that China’s renewable energy manufacturing sector has grown so large that it is now so powerful that ending the illegal subsidies that allowed it to grow so large will not help other nations much to compete against Chinese manufacturers in the world market.

China’s Special Fund for Wind Power Manufacturing illegally gave individual grants of up to $22.5 million to Chinese manufacturers who agreed to use Chinese-made parts in the manufacturing of wind turbines, according to a case filed last year by the United States at the WTO.

The U.S. filed the suit so U.S. manufacturers could have an opportunity to supply parts to Chinese manufacturers.

The issue is especially important now as the U.S. struggles to create more jobs and close the huge trade gap with China.

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Dhaka, Bangladesh (AHN) – The world’s poorest country, Bangladesh, envisions alleviating poverty by half and will dramatically increase its human development budget by nearly 30 percent.

Planning minister A.K. Khandaker told journalists on Sunday that beginning July 1 government will invest in health services, education and infrastructure development.

Power, energy and transport sectors received top priority, Khandaker said.

After years of under-investment in power generation, the impoverished nation of 150 million has a daily shortfall of 2,000 megawatts, with rolling blackouts hitting the private sector, particularly manufacturing, hard.

The National Economic Council (NEC), chaired by Prime Minister Sheikh Hasina, on Sunday approved a 460 billion taka ($6.3 billion) budget, of which 251.8 billion Taka, or 55 percent, will be its own money, aimed at accelerating development activities, according to state-run news service Bangladesh Sangbad Sangstha.

The remaining 41 percent ($2.54 billion) will be from development partners as foreign aid, Khandaker said in briefing journalists after the meeting.

The World Bank says Bangladesh needs annual economic growth of 8 percent to achieve its goal of becoming a middle income country by 2021.

Nearly 13 percent has been budgeted for free primary schools and subsidies for controversial Koranic schools, while much-talked-about rural development and rural institutions have received 9 percent and 8.57 percent for health, nutrition, population and family welfare.

The government, after several hiccups, finally approved a national health policy on Monday to keep pace with visible success in reaching the health-for-all goal.

Opposition and economists are critical of the government for the slow and non-implementation of scores of development projects. The planning minister had no explanation for this widespread criticism, but said steps have been taken to vigorously monitor the performance of the projects.

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Pittsburgh, PA, United States (AHN) – H.J. Heinz Co. reported strong fiscal results on Friday but said it had to close some factories to fast-track productivity worldwide.

The Pittsburgh-based company is shuttering two plants in the United States, another two in Europe and one in the Pacific under a plan that will also centralize European supply chain operations in the Netherlands.

The closures will cut about 1,000 jobs and leave 76 factories worldwide.

Heinz said revenues for fiscal 2011 rose 2 percent to $10.7 billion. Net income for the year, which ended on April 27, was $990 million, or $3.06 per share, growing 14.4 percent from $865 million, or $2.71, last year.

The company said revenue from their North American consumer products grew 2 percent to $3.2 billion. The segment saw volume up 2 percent with strong performances from Heinz ketchup, Ore-Ida frozen potatoes and Smart Ones frozen entrees.

Sales of the U.S. Foodservice segment fell 1 percent to $1.4 billion. Pricing increased sales 2. percent.

Total fiscal revenue from the rest of the world dropped 12 percent to $470 million, largely due to the negative impact of foreign exchange rates, which reduced sales by 25 percent.

But higher prices raised sales by 17 percent. Emerging markets in Brazil, China, India and Russia also delivered 14 percent organic sales growth.

“Heinz delivered record sales, net income and cash flow in fiscal 2011, fueled by accelerating growth in key emerging markets,” president and chief executive William Johnson said in a statement.

“Through excellent execution of our long-term plan, Heinz enhanced its position as one of the best-performing global food companies while driving shareholder value and continued dividend growth,” Johnson added.

The company expects fiscal 2012 earnings per share of $3.24 to $3.32 at constant currency.

Heinz separately announced raising its annual dividend by 12 cents from $1.80 to $192 per share.

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Tokyo, Japan (AHN) – Sony Corporation has temporarily suspended on Wednesday its webpages in Canada, Thailand, Indonesia and Greece following another unauthorized intrusion into its portal.

The fresh hacking involved the theft of personal data of Sony Ericsson Mobile Communications in Canada. The hackers stole 2,000 names, phone numbers and email addresses, but failed to get any credit card details.

They also altered a Sony webpage in Thailand to make it easier to send phishing email and stole web codes from Sony’s music unit’s portal in Indonesia. The Greek intrusion affected about 8,500 customers’ information.

Sony said the hacked websites were externally hosted by third parties and not linked to its main network.

The fresh attack followed last month’s hits on Sony’s network, which involved the data of over 100 million customers. Besides crippling Sony’s PlayStation Network, last month’s cyber attack cost the Japanese firm, which expects a third year of loss, $171 million (JPY 4 billion).

The intrusions also places doubt on Sony’s online security systems. Following the fresh round of hacking incident, Sony’s shares fell 1.5 percent on Wednesday at the Tokyo trading floor.

Sony said it is investigating if the fresh attacks on its webpages are linked to last month’s hacking into the company’s PlayStation Network. The company said it has so far found no evidence connecting the two incidents.

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Washington, DC, United States (AHN) – The U.S. State Department on Tuesday barred seven firms from trading with the U.S. because they supplied oil to Iran in violation of 1996 sanctions against the Islamic country.

Sanctioned were Venezuela’s state oil company, Petróleos de Venezuela, Ofer Brothers Group of Israel, Petrochemical Commercial Company International (PCCI) of the United Kingdom, Royal Oyster Group and Speedy Ship of the United Arab Emirates, Tanker Pacific of Singapore and Associated Shipbroking of Monaco.

Petroleos was found to have delivered $50 million worth of petroleum products to Iran between December 2010 and March this year.

Under the sanctions, the firms cannot bid for government contracts, obtain export licenses, and obtain export-import financing.

The department also sanctioned more than 15 people and companies in China, Iran, North Korea, Syria and elsewhere for illicitly trading in missile technology and weapons of mass destruction. They were banned from vying for U.S. government contracts and from buying and selling U.S. defense articles.

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