Britain’s economy looks on course to shrink during the current quarter and risks falling into a recession, as a survey on Wednesday showed a slump in factory output and broader weakness in the face of higher interest rates.

Oil prices dropped on Wednesday, as traders were cautious ahead of potentially gloomy manufacturing data and an annual meeting at Jackson Hole, where heavy-hitter central bankers including from the United States will talk interest rates.

The dollar eased from recent 10-weak peaks on Tuesday as global risk appetite, hurt by a jump in US government bond yields and a weakening Chinese economy, staged a rebound.

Oil prices were little changed on Tuesday as investors remained downbeat on China’s economic malaise hobbling demand from the world’s top crude importer, limiting the impact of supply cuts.

Germany’s “lacklustre” economy will likely stagnate again in the third quarter, the Bundesbank central bank said Monday, as weak demand from abroad and high interest rates takes their toll on Europe’s industrial powerhouse.

Russia remained China’s largest crude supplier in July, Chinese government data showed on Sunday, even as Russian shipments fall from all-time highs on narrower discounts and rising domestic demand crimps Russian exports.

British retail sales fell more than expected in July, official data showed Friday, with poor weather blamed for the setback as the country tries to revive its flagging economy.

China, the world’s top crude importer, is drawing on record inventories amassed earlier this year as refiners scale back purchases after Opec+ supply cuts drove global prices above $80 a barrel, traders and analysts said.

Britain’s annual inflation rate dropped sharply in July to a 15-month low, official data revealed Wednesday, off the back of lower energy prices and in line with economists’ expectations.

Russia began testing its new digital rouble with consumers on Tuesday, in the hope blockchain technology will help it evade sanctions and tighten control over its citizens.

Basic wages in Britain hit a new record growth rate, figures showed on Tuesday, adding to worries for the Bank of England (BoE) about long-term inflation pressures even after 14 back-to-back increases in interest rates.

Global wealth, as measured in personal holdings of assets from real estate to stocks and shares, is projected to rise 38 percent by 2027, driven largely by emerging markets, a study published by Credit Suisse and UBS showed on Tuesday.

In Russia, what Vladimir Putin wants, Vladimir Putin gets. So, it’s no surprise that a day after prodding by a Kremlin official, the central bank announced an emergency rate increase of 350 basis points to 12 percent. The move was designed to halt a plunge in the rouble, but the currency hardly moved. That leaves the president with tougher choices ahead.

President Vladimir Putin’s economic adviser rebuked the central bank on Monday as the rouble slid past 101 per US dollar, blaming its 30 percent year-to-date slump on loose monetary policy and revealing growing discord among Russia’s monetary authorities.

British employers expect to raise pay by 5 percent over the coming year and are increasingly making counteroffers to keep staff who are tempted by higher wages from rival firms, according to a survey which added to signs of inflationary heat in the job market.

Britain’s economy expanded slightly over the second quarter thanks to strong output in June and despite inflation remaining high, official data showed Friday.

The International Energy Agency said Friday it had revised upwards its forecast for global oil demand growth in 2023 as demand is “scaling record highs”.

Oil hit new peaks on Wednesday with Brent crude touching the highest since April as tighter supply owing to Saudi and Russian output cuts offset concerns over slow demand from China and a report showing rising U.S. crude inventories.

German inflation eased in July, the federal statistics office said on Tuesday, confirming preliminary data.

British food price inflation is likely to fall to around 10 percent later this year but will need to drop further for overall consumer price inflation (CPI) to return to its 2 percent target, Bank of England (BoE) Chief Economist Huw Pill said on Monday.