How will inflation affect Labour’s plans for the economy?
3 months ago

How will inflation affect Labour’s plans for the economy?

The Independent  

It’s early days, obviously, but one of the factors that helps any government “deliver” and win re-election is a healthy economy. Having repeatedly stated that they inherited the worst economic situation since the war – albeit a highly tendentious claim – Labour undoubtedly faces a challenge in achieving the electorally magical combination of low inflation, high employment, rising living standards, healthy public finances, and moderate interest rates. It looks like it’s going to be a tight, rather deflationary Budget, which will be excellent news for interest rates but rather less encouraging for growth in the coming months. The good news is that lower mortgage rates should help household budgets as mortgages are rolled over; and the proposed reforms to planning and the housing market might also restrain the rise in private rental prices, which went up across the UK by 8.4 per cent in the year to August. If things go well, then the Bank rate might be around 3 per cent by this time next year, a vindication of Reeves’s tough approach.

Inflation Budget Bank Interest Rates Cent Rate Reeves Rates Mpc  bank  plans  inflation  budget  mpc  rate  public  economy  affect  cent  labours  way  rates  interest

History of this topic

Interest rates live updates: Bank of England verdict due after surprise inflation rise
Top News
4 days, 17 hours ago

Interest rates live updates: Bank of England verdict due after surprise inflation rise

The Independent  

Chancellor of the exchequer Rachel Reeves said the figures are a ‘reminder that for too long the economy has not worked for working people For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN …

What does rising inflation mean for you - and has it killed off a Bank of England interest rate cut?
5 days, 18 hours ago

What does rising inflation mean for you - and has it killed off a Bank of England interest rate cut?

Daily Mail  

Inflation in the UK climbed to 2.6 per cent in November, it was revealed today, as the rise in the cost of living accelerated again. James Smith, developed markets economist, UK, at ING, said: 'Our base case is for back-to-back to rate cuts from February onwards, with Bank Rate falling to 3.25 per cent later in the year. While services …

U.K. Inflation rises further above Bank of England's target in November
5 days, 18 hours ago

U.K. Inflation rises further above Bank of England's target in November

The Hindu  

Inflation in the U.K. has risen to its highest level since March, driven by an increase in fuel prices last month, official figures showed on Wednesday. Rate-setters had anticipated a pick-up in inflation when the central bank last cut rates in early November as price pressures eased earlier in the year — in September, inflation had fallen to its lowest …

UK inflation increase solidifies expectations interest rates will be kept on hold
5 days, 19 hours ago

UK inflation increase solidifies expectations interest rates will be kept on hold

Associated Press  

LONDON — Inflation in the U.K. rose to its highest level in eight months during November, official figures showed Wednesday, a development that has cemented market expectations that the Bank of England will opt against cutting borrowing costs this week. It said stubbornly high inflation in the crucial services sector, which accounts for around 80% of the U.K. economy, and …

Inflation rises AGAIN to its highest level since March: Price rises hit 2.6 per cent driven by spikes in the cost of petrol and fags to increase pressure on Chancellor Rachel Reeves
Trending News
5 days, 20 hours ago

Inflation rises AGAIN to its highest level since March: Price rises hit 2.6 per cent driven by spikes in the cost of petrol and fags to increase pressure on Chancellor Rachel Reeves

Daily Mail  

Inflation rose for the second month in a row in November, hitting 2.6 per cent to further increase pressure on Labour Chancellor Rachel Reeves over her Budget's impact on the country. Spikes in petrol and tobacco prices drove CPI to 2.6 per cent, up from 2.3 per cent in October, the Office for National Statistics said. Ms Reeves said: 'I …

Bank of England expected to hold interest rates after jump in inflation
1 week, 3 days ago

Bank of England expected to hold interest rates after jump in inflation

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Bank of England is …

Energy costs push UK inflation to 2.3 percent
1 month ago

Energy costs push UK inflation to 2.3 percent

China Daily  

Inflation in the United Kingdom increased to 2.3 percent in October, putting pressure on the Bank of England to wait until next year before making additional interest rate cuts. Figures released by the Office for National Statistics, or ONS, on Wednesday showed that surging household energy costs pushed the consumer price index higher, breaking the pattern of declining inflation rates …

Could stubborn inflation wipe out Labour’s poll advantage?
1 month ago

Could stubborn inflation wipe out Labour’s poll advantage?

The Independent  

Every administration in the democratic world to seek re-election in 2024 has failed – the first time this has happened, according to psephologists. On the downside, it’s becoming increasingly clear to people that the Budget measures are going to push prices higher than otherwise, and depress wages. The rise in employers’ national insurance contributions is going to be passed on …

Labour Budget adds to uncertainty over inflation, says Bank policymaker
1 month ago

Labour Budget adds to uncertainty over inflation, says Bank policymaker

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy A senior Bank of England policymaker has said Labour’s Budget …

UK inflation hits six-month high of 2.3% on high energy bills; BoE stresses on gradual rate cuts
1 month ago

UK inflation hits six-month high of 2.3% on high energy bills; BoE stresses on gradual rate cuts

Live Mint  

British inflation jumped by more than expected last month to rise back above the Bank of England's 2% target and underlying price growth gathered speed too, showing why the BoE is moving cautiously on interest rate cuts. Consumer prices rose by an annual 2.3% in October, pushed up almost entirely by an increase in regulated domestic energy tariffs, after a …

What rising inflation means for you: HUGO DUNCAN on why it dashes hopes of a Christmas Bank of England rate cut
1 month ago

What rising inflation means for you: HUGO DUNCAN on why it dashes hopes of a Christmas Bank of England rate cut

Daily Mail  

There will be no early Christmas present from the Bank of England. The jump in inflation announced today – from 1.7 per cent in September to 2.3 per cent in October – has dashed any lingering hopes of another interest rate cut this year. Inflation spiked to 2.3 per cent in October as fears grow over the impact of the …

Inflation behaving more like a magician who tricks you again and again
1 month ago

Inflation behaving more like a magician who tricks you again and again

New Indian Express  

The main culprit is food inflation, which jumped to 10.87%, largely led by vegetable prices that rose by a staggering 42.18% in October. As Deputy governor Michael Patra noted, inflation will likely encounter a hump in the near months largely due to an adverse base and one-off shocks to prices of vegetables, edible oils and gram. The fact that inflation …

Why Britain’s inflation nightmare may not be over
1 month, 2 weeks ago

Why Britain’s inflation nightmare may not be over

The Telegraph  

Rachel Reeves’s record tax-raising Budget will be bad news for homeowners with mortgages, according to the Bank of England. Threadneedle Street has warned that interest rates are expected to fall more slowly because of Reeves’s inflationary Budget, keeping mortgage repayments higher for longer. Rising costs for employers and a big rise in government spending means inflation will now take a …

RBA leaves cash rate at 4.35pc, acknowledging it's 'restrictive,' while ASX loses ground — as it happened
1 month, 2 weeks ago

RBA leaves cash rate at 4.35pc, acknowledging it's 'restrictive,' while ASX loses ground — as it happened

ABC  

Here are some highlights from the RBA Board's statement. Underlying inflation remains too high: "Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance. "Headline inflation was 2.8 per cent over the year to the September quarter, down from 3.8 per cent over the year …

Inflation set to stay above 2% for next four years, says OBR
1 month, 3 weeks ago

Inflation set to stay above 2% for next four years, says OBR

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy UK inflation is set to …

Reeves’s Budget to keep interest rates higher for longer, say economists
2 months ago

Reeves’s Budget to keep interest rates higher for longer, say economists

The Telegraph  

Rachel Reeves’s plans for increased borrowing and spending will force the Bank of England to hold interest rates higher for longer, leading economists have said. Pantheon Macroeconomics said that rates would be 0.25 to 0.5pc percentage points higher during the next financial year as a result of the Chancellor’s looser fiscal policy. Economists Robert Wood and Elliott Jordan-Doak said: “The …

Interest rate cut ‘nailed on’ after UK inflation falls to three-year low
2 months, 1 week ago

Interest rate cut ‘nailed on’ after UK inflation falls to three-year low

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy A fall in UK inflation …

Why has inflation slowed and what does it mean for households?
2 months, 1 week ago

Why has inflation slowed and what does it mean for households?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. It was the lowest reading since April 2021 and …

Inflation in Europe falls below 2% and opens the way for faster rate cuts
2 months, 3 weeks ago

Inflation in Europe falls below 2% and opens the way for faster rate cuts

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Inflation steady – but chances of another rate cut are slim
3 months ago

Inflation steady – but chances of another rate cut are slim

The Independent  

Let’s start with the good news: August’s inflation number came in unchanged at 2.2 per cent. While that is higher than the Bank of England’s 2 per cent target, it is in line with City forecasts and beneath the 2.4 per cent the Bank itself had predicted at this stage. One thing to watch is the cost of services – …

Inflation climbs above Bank of England target in first rise of 2024
4 months, 1 week ago

Inflation climbs above Bank of England target in first rise of 2024

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation has risen for the …

Jeremy Hunt accuses Rachel Reeves of preparing to use inflation rise as cover for ‘planned’ tax hike
4 months, 1 week ago

Jeremy Hunt accuses Rachel Reeves of preparing to use inflation rise as cover for ‘planned’ tax hike

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ /verifyErrors }} Jeremy Hunt has …

What rising inflation means for you and what happens next
4 months, 1 week ago

What rising inflation means for you and what happens next

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. That means overall services prices still rose versus July last …

Inflation rises to 2.2% for first time this year in blow to interest rate cut next month
4 months, 1 week ago

Inflation rises to 2.2% for first time this year in blow to interest rate cut next month

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. However, despite the smaller than …

Inflation likely stayed low last month as Federal Reserve edges closer to cutting rates
4 months, 1 week ago

Inflation likely stayed low last month as Federal Reserve edges closer to cutting rates

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. For months, cooling inflation has …

Slowdown in wage growth ‘clears the path for more interest rate cuts’ by BoE this year
4 months, 1 week ago

Slowdown in wage growth ‘clears the path for more interest rate cuts’ by BoE this year

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. “This lends some support to our forecast that the Bank …

Bank of England interest rate cut joy for mortgage holders as Rachel Reeves blames mini-Budget for inflation - UK politics live
4 months, 3 weeks ago

Bank of England interest rate cut joy for mortgage holders as Rachel Reeves blames mini-Budget for inflation - UK politics live

The Independent  

✕ Close Rachel Reeves admits taxes will rise in first Budget Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy …

Inflation figures may give government a rate rise reprieve next week, but the path is not yet certain
4 months, 3 weeks ago

Inflation figures may give government a rate rise reprieve next week, but the path is not yet certain

ABC  

Jim Chalmers faces a nervous wait over the next six days to the Reserve Bank of Australia rate decision even if today's inflation data look to have handed him a brief political 'get-out-of-jail' card. Underlying inflation, which is the Reserve Bank's main guiding measure as it removes outlier and one-off impacts that add volatility to the headline consumer price index, …

Wages are rising 3.2% above inflation - the highest in nearly three years - as prices subside and jobs market holds steady... despite Rachel Reeves' grim claims that the economy is worse than she thou
5 months ago

Wages are rising 3.2% above inflation - the highest in nearly three years - as prices subside and jobs market holds steady... despite Rachel Reeves' grim claims that the economy is worse than she thou

Daily Mail  

Wages are rising 3.2 per cent above inflation with the jobs market holding steady, according to new figures today. Regular pay is increasing at the fastest pace in nearly three years relative to prices, after CPI inflation returned to the Bank of England's 2 per cent target. Wages are rising 3.2 per cent above inflation with the jobs market holding …

‘Taylor Swift effect’ stops inflation dropping below 2% as calls grow for rate cut
5 months ago

‘Taylor Swift effect’ stops inflation dropping below 2% as calls grow for rate cut

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. The rate of Consumer Prices Index inflation remained unchanged …

UK inflation stays at 2% target in June, leaving rate cut on a 'knife edge'
5 months ago

UK inflation stays at 2% target in June, leaving rate cut on a 'knife edge'

Hindustan Times  

Inflation in the U.K. held steady at the Bank of England's target rate of 2% in the year to June, official figures showed Wednesday, in a development that could be enough for policymakers to cut borrowing costs next month. Grocery price inflation fell to its lowest level since September 2021 in a further sign of easing cost pressures, ahead of …

US inflation cools again, potentially paving way for Fed to cut interest rates soon
5 months, 1 week ago

US inflation cools again, potentially paving way for Fed to cut interest rates soon

New Indian Express  

WASHINGTON: Inflation in the United States cooled in June for a third straight month, a sign that the worst price spike in four decades is steadily fading and may soon usher in interest rate cuts by the Federal Reserve. In a better-than-expected report, consumer prices declined 0.1% from May to June after having remained flat the previous month, the Labor …

UK inflation rate back down to 2%
6 months ago

UK inflation rate back down to 2%

China Daily  

FILE PHOTO: A tourist shelters from the rain under an Union Jack umbrella near the Bank of England in the City of London financial district in London, Britain, February 13, 2024. The United Kingdom's ruling Conservative Party got some rare good news on Wednesday, when the country's inflation rate eased back down to the Bank of England's 2 percent target …

Inflation drops to Bank of England’s 2% target for first time in almost three years
6 months ago

Inflation drops to Bank of England’s 2% target for first time in almost three years

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation has fallen back to the 2 per cent target …

With election looming, UK’s governing Conservatives seize on inflation fall to 2% target
6 months ago

With election looming, UK’s governing Conservatives seize on inflation fall to 2% target

Associated Press  

LONDON — Inflation in the U.K. returned to the Bank of England’s target rate of 2% for the first time in nearly three years, official figures showed Wednesday, a development that was seized on by the governing Conservative Party as evidence that its economic plan is “working” ahead of the July 4 election. But Conservative Prime Minister Rishi Sunak hailed …

UK inflation - live: Tories call for Bank of England to cut interest rates despite market gloom over rising prices
7 months ago

UK inflation - live: Tories call for Bank of England to cut interest rates despite market gloom over rising prices

The Independent  

✕ Close Hunt attacks Labour and says he refutes 'myths' the economy is worse under Tories For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like …

UK inflation predicted to drop close to Bank of England’s 2% target
7 months ago

UK inflation predicted to drop close to Bank of England’s 2% target

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Bank of England edges closer to rate cut, possibly in June, as it predicts below-target inflation
7 months, 2 weeks ago

Bank of England edges closer to rate cut, possibly in June, as it predicts below-target inflation

Associated Press  

LONDON — The Bank of England maintained its key U.K. interest rate at a 16-year high of 5.25% though it gave a broad hint that a reduction could be on the cards as soon as June as inflation is forecast to fall below target. I’m optimistic that things are moving in the right direction.” Bailey indicated that the financial markets …

Inflation is falling fast – but will the Bank of England move to cut interest rates?
9 months ago

Inflation is falling fast – but will the Bank of England move to cut interest rates?

The Independent  

Some welcome news for consumers: inflation has once again fallen by more than expected. The headline number for February, per the Office for National Statistics, came in at 3.4 per cent – below both the consensus of the City and the Bank of England’s own forecast of 3.5. The CPI “all services” rate also declined to 6.1 per cent in …

UK recession ‘weak’ and rates may be cut before inflation hits 2% – Bailey
10 months ago

UK recession ‘weak’ and rates may be cut before inflation hits 2% – Bailey

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Bank of England Governor Andrew …

Interest rates may need to rise again, warns Bank of England
1 year ago

Interest rates may need to rise again, warns Bank of England

The Telegraph  

Policymakers pushed back against any assumption of an imminent fall in the Bank’s base rate, warning that pay and services inflation – two key indicators of price pressures – “remained elevated”. The MPC said: “Inflation persistence remained higher than in other major advanced economies, possibly reflecting less favourable supply-side developments and stronger second-round effects in the UK.” Britain’s inflation rate, …

Inflation in Europe falls to 2.4% as interest rates pack a punch. But the economy has stalled
1 year ago

Inflation in Europe falls to 2.4% as interest rates pack a punch. But the economy has stalled

Associated Press  

LONDON — Europeans again saw some relief as inflation dropped more than expected to 2.4% in November, the lowest in over two years, as plummeting energy costs have eased a cost-of-living crisis but higher interest rates squeeze the economy’s ability to grow. The new figure is close to the European Central Bank’s inflation target of 2% following a rapid series …

Hunt: we may see inflation blip in September
1 year, 3 months ago

Hunt: we may see inflation blip in September

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. If we are going to put money in people's …

What rising inflation means for you: CPI increases to a six-month high - what happens next?
1 year, 4 months ago

What rising inflation means for you: CPI increases to a six-month high - what happens next?

Daily Mail  

Inflation has risen higher than the national target, meaning consumers pay more Inflation rose above the Bank of England's 2 per cent target in October, reaching a six-month high. The bigger-than-expected rise in the headline inflation rate to 2.3 per cent coincided with another increase in core inflation, which has continued to run hot. Julian Jessop, economics fellow at the …

Bank of England expected to hike interest rates after record wage rise
1 year, 4 months ago

Bank of England expected to hike interest rates after record wage rise

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Wage growth means the Bank …

Inflation slows more than expected, chance of an August RBA interest rate rise reduced
1 year, 4 months ago

Inflation slows more than expected, chance of an August RBA interest rate rise reduced

ABC  

Consumer prices rose 0.8 per cent over the three months to June, making a 6 per cent increase over the past year. Key points: Quarterly inflation slowed from 1.4pc in March to 0.8pc in June The annual rate of headline inflation is 6pc, down from 7.8pc in December Economists and financial traders now believe an RBA interest rate rise next …

Inflation now driven by demands for higher wages, warn businesses
1 year, 5 months ago

Inflation now driven by demands for higher wages, warn businesses

The Telegraph  

Inflation is now being driven by higher wages as companies pass on rising salary costs to their customers, bosses have warned. The economy is slowing sharply, with the manufacturing sector shrinking and the dominant services industries running out of steam, according to the purchasing managers’ index, an influential survey from S&P Global. Price rises are slowing from last year’s highs …

UK recession fears mount after Bank of England hikes borrowing rates by more than expected
1 year, 6 months ago

UK recession fears mount after Bank of England hikes borrowing rates by more than expected

Associated Press  

LONDON — Fears that the British economy is heading for recession mounted sharply Thursday after the Bank of England raised borrowing costs by more than anticipated, seeking to combat stubbornly high inflation with a hike that will hit borrowers hard, particularly homeowners who have to refinance in the coming months. “But if we don’t raise rates now, it could be …

UK inflation steady at 8.7% against predictions for modest fall
1 year, 6 months ago

UK inflation steady at 8.7% against predictions for modest fall

Hindustan Times  

Consumer price inflation across the UK was unchanged at 8.7 per cent in the year to May against expectations for a modest decline, official figures showed on Wednesday, a development that is set to see the Bank of England raise the cost of borrowing again. Financial markets think news of the unchanged rate will mean the Bank of England will …

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