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Tag: inflation

UK inflation falls to lowest in a year

UK inflation falls to lowest in a year

Business
UK consumer price inflation fell in March to 2.5%, the lowest rate in a year, according to the Office for National Statistics.It fell from 2.7% in February after prices for women's clothing rose at a slower pace than last year.The data appears to show that the squeeze on UK households may be coming to an end as wages rise.Despite the inflation fall, economists still expect the Bank of England to raise interest rates in May. According to the most recent figures, UK wages rose by 2.8% in February. The Bank is forecast to lift the interest rate to 0.75% from 0.5% next month.Laith Khalaf, senior analyst at Hargreaves Lansdown, said that while he expected the Bank to proceed with the increase, he believes the Monetary Policy Committee will move slowly.He said: "Wage growth remains surprisingly...
Inflation slides to lowest level for a year

Inflation slides to lowest level for a year

Business
The UK's cost of living has unexpectedly fallen to its lowest level in a year amid a slower rise in the price of women's clothing. The Office for National Statistics (ONS) said consumer prices declined to 2.5% in March from 2.7% in February.Most economists had expected inflation to remain unchanged."Inflation fell to its lowest rate in a year, with women's clothing prices rising slower than usual for this time of year," Mike Hardie, head of inflation at the ONS, said."Alcohol and tobacco also helped ease inflation pressures, with tobacco duty rises linked to the Budget not appearing this March, thanks to its new autumn billing."Growth in the price of goods leaving factories continued to slow, due mainly to a smaller increase in the price of food products compared with this time last year."...
Wages overtake inflation to end squeeze

Wages overtake inflation to end squeeze

Business
Wage growth rose to 2.8% in the three months to February, outstripping inflation for the first time in a year, official figures show.The figures from the Office for National Statistics (ONS) signal an end to the squeeze on household incomes after the slump in the pound following the Brexit vote drove the cost of living higher.Inflation had topped 3% in recent months but more recently has eased, dipping to 2.7% in February.The return to real terms wage growth will revive hopes for the struggling high street, where retailers have been struggling thanks to the strain in consumers' finances.It should also keep up expectations that the Bank of England will raise interest rates to 0.75% next month.There was a further boost from the official labour market statistics as the unemployment rate fell ...
Inflation falls to seven-month low, says ONS

Inflation falls to seven-month low, says ONS

Business
Inflation fell to 2.7% last month from 3% in January, the Office for National Statistics said.Lower petrol prices and cheaper hotel rooms were among the reasons for the decline, which was slightly bigger than expected.There was also a more muted rise in the cost of food and drink than in the same period of 2017, when a shortage of vegetables from Europe such as lettuce and courgettes affected supply.That helped take the Consumer Price Index (CPI) measure of inflation to its lowest level since July last year. Economists had been expecting a reading of 2.8%.The figures come two days before the Bank of England's next interest rate decision but are unlikely to change expectations about the timing of the next hike - with many experts pencilling in May for a rate rise but others urging the Bank ...
Here's what you need to know if you have inflation jitters

Here's what you need to know if you have inflation jitters

Finance
Seemingly everyone is on edge about the Federal Reserve's next moves — with reason.Throughout the nearly nine-year bull market run, the Fed held rates near zero. But recent signs of rising inflation could push the central bank into hiking rates more aggressively, which will have far-reaching consequences for consumers."Inflation is accelerating and may well push interest rates higher, allowing the Fed to move policy rates three times this year, and perhaps even four," Rick Rieder, chief investment officer of global fixed income at BlackRock, said in a statement.For the average American, the threat of rising interest rates isn't necessarily bad. It's generally considered a sign that the economy is doing well, which is what helped jump-start a wave of bonuses and may lead to more pay increas