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Bangkok faces the highest flood levels yet and is preparing for the worst, the governor of the Thai capital told CNN Wednesday.

Residents are urged to flee the rising floodwaters, which have already forced the closure of Bangkok's Don Muang airport and the evacuation of flood victims who have taken refuge there.

UK CPI inflation rate rises to 4.4% in July

The rate of Consumer Prices Index (CPI) inflation rose to 4.4% from 4.2% in June, according to figures from the Office for National Statistics (ONS).

The Retail Prices Index (RPI) measure was unchanged at 5%.

Clothing and footwear prices measured for CPI saw their biggest annual increase since records began in 1997.

Bank of England governor Mervyn King has written another letter to the chancellor to explain why CPI inflation remains well above the 2% target rate.

The governor must write a letter every three months if CPI is more than one percentage point above or below the target.

He blamed the continuing high inflation rate on, "the increase in the standard rate of VAT to 20%, and past increases in global energy prices and import prices".

He also stressed that "the big risks currently facing the UK economy come from the rest of the world".

The Bank of England said last week that it remained confident that inflation would return to its target level in the next two years.

source: BBC

US overall trade deficit is the highest in 32 months

The trade gap rose from an upwardly revised $50.8bn in May, the Commerce Department said, a bigger rise than analysts had expected.

Industrial goods accounted for much of the fall in exports.

The figures come amid growing concerns about the US economic recovery and the country's high debt levels.

Total exports for the month fell by $4.1bn to $170.9bn, while imports fell by $1.9bn to $223.9bn.

Consumer goods exports actually increased, while cars and car parts were virtually unchanged from the previous month.

Imports and exports of services were virtually unchanged.

The US's deficit with China grew to $26.7bn, up from $25bn in May, while that with the European Union rose by $1bn to $9.8bn.

The US recorded a trade surplus with Hong Kong, Australia, Singapore and Egypt.

Source: BBC News