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Tag: inflation

Inflation steady at 3% despite food cost rise

Inflation steady at 3% despite food cost rise

Business
The rate of inflation remained static at 3% in October - defying expectations of a rise among economists and policymakers at the Bank of England.The Office for National Statistics (ONS) said rising food prices were largely offset by falling fuel costs last month.Forecasters had predicted an increase to at least 3.1% - a scenario that would have forced the Bank's governor to write to the Chancellor to explain why the Consumer Prices Index measure had exceeded 3%.Its inflation target is 2%. The Bank raised interest rates earlier this month to help tackle inflation in its belief the figure was to hit 3.2% in October.The ONS figures are likely to reinforce doubts among some economists on the wisdom of that rate hike, which has forced up many families' borrowing costs at a time when their spen...
As the global economy picks up, inflation is oddly quiescent

As the global economy picks up, inflation is oddly quiescent

Finance
A FEW years ago, the news about the euro-zone economy was uniformly bad to the point of tedium. These days, it is the humdrum diet of benign data that prompts a yawn. Figures this week show that GDP rose by 0.6% in the three months to the end of September (an annualised rate of 2.4%). The European Commission’s economic-sentiment index rose to its highest level in almost 17 years. Yet when the European Central Bank’s governing council gathered on October 26th, it decided to keep interest rates unchanged, at close to zero, and to extend its bond-buying programme (known as quantitative easing, or QE) for a further nine months.The central bank said it would slow down the pace of bond purchases each month, to €30bn ($ 35bn) from January. But Mario Draghi, the bank’s boss, declined to set an end
European Stocks Edge Lower as Rising UK Inflation Raises Prospects of Rate Hike in Britain

European Stocks Edge Lower as Rising UK Inflation Raises Prospects of Rate Hike in Britain

Finance
Shutterstock photoEuropean equity benchmarks were struggling for direction on Tuesday morning after a jump in the UK's inflation rate prompted speculation that the Bank of England may raise interest rates at its next meeting in November and as car-manufacturers shifted into reverse.Britain's consumer price index ( CPI ) posted annual growth of 3% in September, up from 2.9% in August, according to data published by the Office for National Statistics. The increase in consumer prices is broadly expected to influence discussions at the Bank of England ahead of of its next monetary policy decision. Rising inflation, which has been a key theme since Britain's surprise referendum decision to leave the European Union (EU) last June, is generally expected to heighten the probability of a rate hike...
Food price rises see inflation climb to 3%

Food price rises see inflation climb to 3%

Business
Inflation rose to 3% in September, its highest level in more than five years, the Office for National Statistics (ONS) said.The Consumer Prices Index (CPI) measure of inflation rose from 2.9% in August thanks partly to higher food prices - adding to the squeeze on households as pay growth lags behind.But it will be welcomed by those receiving the state pension, as the September figure is used to calculate increases in the benefit next April under the Government's "triple lock" guarantee.It was the first time CPI inflation has reached 3% since April 2012. The Bank of England targets inflation at 2%.The CPI figure - which was in line with expectations - should bolster expectations that the Bank will hike interest rates next month, though some have cautioned against such a move at a time of t...