Does the drop in inflation mean things are going to get better?
2 months, 1 week ago

Does the drop in inflation mean things are going to get better?

The Independent  

Inflation has fallen once more, which, given that the country isn’t also obviously heading for recession, is good news. It takes some of the pressure off her, because wages are going up in real terms, and the reduction in inflation means that the Bank of England will feel more relaxed about reducing interest rates in the coming months – a help to mortgage holders and businesses at a time when market rates have been edging higher. Lower inflation and interest rates also mean that the benefits bill and the cost of servicing the national debt will ease – and the 1.7 per cent figure for September is the one used to calculate universal credit payments. Provided Reeves doesn’t freak out the Office for Budget Responsibility and the Bank of England, and they judge that the fiscal stance is sustainable and consistent with both bearing down on inflation and a gently downward trend in rates, then she can proceed as planned. Of course.” It’s also fair to say that the economic policies he pursued helped to halve inflation from its peak, underpinned the Bank’s interest rate strategy, and helped get inflation back under control, albeit much of it was already going to happen for purely mathematical reasons.

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History of this topic

UK inflation increase solidifies expectations interest rates will be kept on hold
6 days, 9 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 …

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 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 – …

Why the rise in inflation might actually be... good news
4 months, 1 week ago

Why the rise in inflation might actually be... good news

The Independent  

Inflation is up… and that’s, erm, good news. A small cut in the Bank rate from the current 5 per cent to, say, 4.75 per cent in September, October or November is slightly more likely now than it seemed yesterday. Prices overall on this definition rose by 3.3 per cent in the year to July 2024 – down from 3.5 …

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 lowest in 3 years. Prime Minister Sunak makes it a focus in election call for July 4
7 months ago

UK inflation lowest in 3 years. Prime Minister Sunak makes it a focus in election call for July 4

Associated Press  

LONDON — Inflation in the U.K. fell sharply to its lowest level in nearly three years in April on the back of big declines in domestic bills, official figures showed Wednesday. “While it’s clearly good news headline inflation is back to normal levels, it is disappointing that price pressures haven’t fallen further and that measures of services inflation are proving …

US inflation eased last month in the first slowdown of 2024
7 months, 1 week ago

US inflation eased last month in the first slowdown of 2024

Associated Press  

WASHINGTON — Led by lower food and auto prices, inflation in the United States cooled slightly last month after three elevated readings, likely offering a tentative sigh of relief for officials at the Federal Reserve as well as President Joe Biden’s re-election team. Instead, he stressed that the Fed’s policymakers need “greater confidence” that inflation is falling to their 2% …

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 …

UK inflation falls to lowest level since late 2021 as food prices ease further
8 months, 1 week ago

UK inflation falls to lowest level since late 2021 as food prices ease further

Associated Press  

LONDON — Inflation in the U.K. fell to its lowest level in two and a half years in March after a further easing in food prices, official figures showed Wednesday, a development which could further pave the way for a welcome cut in interest rates soon. Inflation is set to fall further in April, possibly to below 2%, as a …

What exactly the fall in inflation means for your money
9 months ago

What exactly the fall in inflation means for your money

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. Grant Fitzner, chief economist at …

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 …

What does the steep fall in inflation mean for UK households?
9 months ago

What does the steep fall in inflation mean for UK 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. Read our privacy policy Cash-strapped households have been given …

Inflation drops to two-year low in boost for rate cut hopes
9 months ago

Inflation drops to two-year low in boost for rate cut hopes

The Telegraph  

Chancellor Jeremy Hunt said the fall in inflation signalled the Government’s plan for the economy was working and paved the way for future tax cuts. He rebuffed talk of a backbench plot to oust him that could derail his economic plans, telling the BBC: “What’s important is the future of our country, and people’s financial security and the peace of …

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 …

UK fell into recession at the end of 2023 as economy takes center stage in runup to general election
10 months, 1 week ago

UK fell into recession at the end of 2023 as economy takes center stage in runup to general election

Associated Press  

LONDON — The British economy fell into recession at the end of 2023 for the first time since the onset of the coronavirus pandemic, as output shrank more than anticipated in the final three months of the year, official figures showed Thursday. The quarterly decline followed a 0.1% fall in the previous three-month period and highlights how the economy has …

How will the latest rise in inflation impact house prices?
11 months ago

How will the latest rise in inflation impact house prices?

Daily Mail  

A drop in house prices is 'inevitable' following the latest inflation figures, a top property trade body suggests. The headline CPI rate defied expectations of a dip in December, rising from 3.9 per cent to 4 per cent Property insiders agreed that it is likely to be a 'bumpy ride' ahead for the property market. The typical home was worth …

UK inflation falls by more than anticipated to 2-year low of 3.9% in November
1 year ago

UK inflation falls by more than anticipated to 2-year low of 3.9% in November

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 in the U.K. as …

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, …

The world economy will slow next year because of inflation, high rates and war, OECD says
1 year ago

The world economy will slow next year because of inflation, high rates and war, OECD says

Associated Press  

WASHINGTON — The global economy, which has proved surprisingly resilient this year, is expected to falter next year under the strain of wars, still-elevated inflation and continued high interest rates. China’s “consumption growth will likely remain subdued due to increased precautionary savings, gloomier prospects for employment creation and heightened uncertainty,″ the OECD said. The world economy has endured one shock …

What’s pushing inflation down? More goods, workers and housing
1 year, 1 month ago

What’s pushing inflation down? More goods, workers and housing

Associated Press  

WASHINGTON — Long past its painful peak, inflation in the United States may be heading steadily back toward its pre-pandemic levels, without the need for further interest rate hikes by the Federal Reserve. Overall inflation didn’t rise from September to October, the first time that consumer prices collectively haven’t budged from one month to another in more than a year. …

A Recession Is No Longer the Consensus
1 year, 2 months ago

A Recession Is No Longer the Consensus

Live Mint  

Economists are turning optimistic on the U.S. economy. In the latest quarterly survey by The Wall Street Journal, business and academic economists lowered the probability of a recession within the next year, from 54% on average in July to a more optimistic 48%. View Full Image “The probability of recession continues to recede in the U.S. as the banking turmoil …

Inflation drops to a two-year low in Europe. It offers hope, but higher oil prices loom
1 year, 2 months ago

Inflation drops to a two-year low in Europe. It offers hope, but higher oil prices loom

Associated Press  

FRANKFURT, Germany — Inflation that has plagued Europeans declined sharply in September to the lowest level in two years, strengthening hopes that consumers will get relief from costlier groceries, vacations and haircuts — and that the European Central Bank won’t have to further restrict the economy by raising interest rates from already-record highs. But recently higher oil prices are casting …

UK inflation falls to 17-month low of 6.8% but unlikely to derail another interest rate rise
1 year, 4 months ago

UK inflation falls to 17-month low of 6.8% but unlikely to derail another interest rate rise

Associated Press  

LONDON — The rate of inflation in the U.K. fell sharply in July to a 17-month low largely on the back of lower energy prices, official figures showed Wednesday, a welcome development for hard-pressed households struggling during the cost of living crisis. The Office for National Statistics said the annual rate of inflation, as measured by the consumer price index, …

House prices are falling, but here’s why it would be wrong to give up on bricks and mortar
1 year, 4 months ago

House prices are falling, but here’s why it would be wrong to give up on bricks and mortar

The Independent  

Homeowners can be forgiven for worrying about the news of a slump in house prices, but all is not doom and gloom. Whereas April and May’s hot inflation figures raised the prospect that the UK could be an outlier on inflation among advanced economies, prompting an ugly spike in borrowing costs, June’s reading largely allayed those fears. The Nationwide data …

UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low
1 year, 5 months ago

UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low

Associated Press  

LONDON — Inflation in the U.K. has fallen by more than anticipated to a 15-month low, official figures showed Wednesday, a development that offered struggling households hope that interest rates won’t rise as much as feared over the coming months. Although Dave Ramsden, deputy governor at the Bank of England, said inflation is still “much too high,” analysts said the …

Europe sees inflation drop to 6.1%, but real relief for consumers will take months
1 year, 6 months ago

Europe sees inflation drop to 6.1%, but real relief for consumers will take months

Associated Press  

FRANKFURT, Germany — Europe’s inflation took a positive turn with a significant drop to 6.1%, but prices are still posing a pinch to shoppers who are yet to see real relief in what they pay for food and other necessities. “Otherwise, you sometimes make impulse purchases.” The food bank at Berlin’s St. Wilhelm Roman Catholic Church, meanwhile, has gone from …

UK inflation falls again, raising hopes prices will plunge
1 year, 10 months ago

UK inflation falls again, raising hopes prices will plunge

Associated Press  

LONDON — Britain’s inflation rate fell for a third consecutive month in January, boosting optimism that the cost-of-living crisis has peaked and prices will fall sharply later this year. The Bank of England forecasts prices will fall rapidly in the second half of this year as energy costs begin to moderate and price increases triggered by Russia’s invasion of Ukraine …

‘Must stick to plan to bring down nightmare inflation,’ says UK finance minister Jeremy Hunt
1 year, 11 months ago

‘Must stick to plan to bring down nightmare inflation,’ says UK finance minister Jeremy Hunt

Firstpost  

Inflation in the United Kingdom eased slightly last month after hitting a 41-year high in October, providing some relief to the Bank of England. The pressure on households, however, remained intense as food and drink prices climbed at the fastest pace since 1977, according to government data London: British finance minister Jeremy Hunt on Wednesday indicated that the UK government …

Can US avoid a recession? As inflation eases, optimism rises
1 year, 11 months ago

Can US avoid a recession? As inflation eases, optimism rises

Associated Press  

WASHINGTON — For months, the outlook for the U.S. economy has been a mostly bleak one: Inflation hitting a four-decade high, consumer spending weakening, interest rates surging. These trends are raising expectations that the Fed might manage to engineer an often-elusive “soft landing,” whereby the economy slows but doesn’t go into reverse and unemployment rate rises slightly but stays low. …

UK inflation eases but little relief at near 40-year high
2 years ago

UK inflation eases but little relief at near 40-year high

Associated Press  

LONDON — U.K. inflation has eased but is still stuck near a 40-year high, piling pressure on employers to boost wages as the nation faces a wave of strikes and the Bank of England to approve a ninth consecutive interest rate increase. While annual consumer price inflation dipped to 10.7% in November from 11.1% the previous month, it is at …

Inflation hits new record in Europe, slowing economy
2 years, 1 month ago

Inflation hits new record in Europe, slowing economy

Associated Press  

FRANKFURT, Germany — Inflation hit a new record in the 19 countries that use the euro currency, fueled by out-of-control prices for natural gas and electricity due to Russia’s war in Ukraine. Economic growth also slowed ahead of what economists fear is a looming recession, largely as a result of those higher prices sapping Europeans’ ability to spend. Natural gas …

Hints of cooling prices, but Fed vows firm inflation stance
2 years, 3 months ago

Hints of cooling prices, but Fed vows firm inflation stance

Associated Press  

WASHINGTON — Inflation eased last month as energy prices tumbled, raising hopes that the surging costs of everything from gasoline to food may have peaked. So-called core inflation, which excludes volatile food and energy prices, rose 4.6% last month from a year earlier after rising 4.8% in June. The drop — along with a reduction in the Labor Department’s consumer …

Soaring inflation sees household incomes fall for record four quarters in a row
2 years, 5 months ago

Soaring inflation sees household incomes fall for record four quarters in a row

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 Household finances failed to keep …

Inflation leaves world economy in disarray
2 years, 7 months ago

Inflation leaves world economy in disarray

The Hindu  

W HEN the world’s financial leaders met in mid April in Washington, D.C., for the annual spring meetings of the International Monetary Fund and the World Bank, the mood was one of gloom. In recent years, however, the Great Moderation, or a long period of low inflation, had attuned central banks to adopting a loose monetary policy regime, with large …

UK inflation rises at the fastest pace in 30 years
2 years, 8 months ago

UK inflation rises at the fastest pace in 30 years

Associated Press  

LONDON — British consumer prices rose at the fastest pace in 30 years last month, fueled by soaring costs for household energy and motor fuels — the latest grim figures as inflation surges around the world. The U.K. faces what economists say will be the biggest drop in living standards since the mid-1950s as rocketing energy costs, rising food prices …

UK set for severe drop in living standards, as inflation curbs growth
2 years, 9 months ago

UK set for severe drop in living standards, as inflation curbs growth

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 Brits are set for the …

Inflation means we’re in for a tough year ahead – how will increasing interest rates help?
2 years, 9 months ago

Inflation means we’re in for a tough year ahead – how will increasing interest rates help?

The Independent  

This week will see an increase in interest rates in the US and UK. In the case of the US, last week saw consumer inflation reach 7.9 per cent, the highest for 40 years. The Federal Reserve has paved the way for the first increase in interest rates since 2018, with its chair Jerome Powell telling Congress that he is …

Why inflation is about to peak
2 years, 10 months ago

Why inflation is about to peak

CNN  

Editor’s Note: Erik Lundh is a principal economist at The Conference Board. Unfortunately, that number went even higher last month, with the Consumer Price Index hitting 7.5% year-over-year in January, a 40-year high. However, with new Covid-19 cases plummeting, many of these disruptions should start to ease and allow supply to strengthen and better meet demand — meaning more modest …

Cost of living crisis triggers recession fears
3 years, 2 months ago

Cost of living crisis triggers recession fears

The Telegraph  

After the biggest drop in output for a century, the UK seemed to be on track for a much-needed economic rebound. Firms face lingering supply chain bottlenecks, prices are rising and tax hikes are set to kick in next year: Britain’s economy is increasingly vulnerable to further shocks. “This combination of fighting inflation at a time of high energy prices, …

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