Tag Archives: inflation

Inflation steady despite food price rises

The UK’s key inflation rate remained steady at a five-and-a-half-year high of 3% in October, according to official figures. Falls in fuel prices were offset by higher food costs, particularly the price of potato crisps, the Office for National Statistics (ONS) said. The Consumer Prices Index (CPI) had been expected to rise, with the Bank of England forecasting it would peak at 3.2% this autumn. The official target for the CPI is 2%. If the CPI inflation rate had risen above 3%, Bank of England governor Mark Carney would have ...

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UK inflation at highest since April 2012

The UK’s key inflation rate hit its highest for more than five years in September, driven up by increases in transport and food prices. The Consumer Prices Index (CPI) climbed to 3%, a level it last reached in April 2012, and up from 2.9% in August. The pick-up in inflation raises the likelihood of an increase in interest rates next month. The figures are significant because state pension payments from April 2018 will rise in line with September’s CPI. Under the “triple lock” guarantee, the basic state pension rises by ...

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Janet Yellen expects healthy inflation to return

Federal Reserve Chair Janet Yellen gave a glimpse Sunday into what she called the most surprising thing about the American economy: the stubbornly low rate of inflation. Speaking to a group of international central bankers in Washington, D.C. on Sunday, Yellen said she doesn’t expect inflation to continue on its recent anemic trend. The talk came at a time of heightened political visibility for Yellen, whose term as chair ends in February. President Trump is said to be considering a nominee among a list of five candidates — Yellen among ...

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UK inflation unexpectedly slows to 2.6% in June

The UK’s inflation rate dropped unexpectedly to 2.6% in June, down from 2.9% in May, official figures have shown. It is the first fall in the rate since October 2016 and was largely down to lower petrol and diesel prices. Fuel prices fell for the fourth month in a row in June, according to the Office for National Statistics. Economists say the fall in inflation could ease pressure on the Bank of England to raise interest rates. The UK inflation rate has risen sharply since the referendum on membership of ...

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UK wage growth slows as higher inflation starts to bite

The UK unemployment rate has remained at 4.7% as inflation starts to wipe out wage growth, official figures show. The number of people unemployed fell by 45,000 to 1.56 million in the three months to February, said the Office for National Statistics (ONS). Average weekly earnings including bonuses increased by 2.3%, the same as in the year to January. On Tuesday, figures showed inflation was running at 2.3%, above the Bank of England’s 2% target. The ONS said average weekly earnings for employees rose by 2.3% including bonuses, and by ...

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UK inflation rate leaps to 2.3%

Rising fuel and food prices helped to push last month’s inflation rate to the highest since September 2013. Inflation as measured by the Office for National Statistics’ Consumer Prices Index (CPI) jumped to 2.3% in February – up from 1.8% in January. The increase has pushed the rate above the Bank of England’s 2% target. Food prices recorded their first annual increase for more than two-and-a-half years, standing 0.3% higher in February than a year earlier. The Bank of England has said it expects inflation will peak at 2.8% next ...

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UK inflation highest since June 2014

Inflation has reached its highest rate for two-and-a-half years, mainly as a result of the rising price of fuel. Annual inflation as measured by the Consumer Prices Index (CPI) reached 1.8% last month, the Office for National Statistics (ONS) said, up from a rate of 1.6% in December. It is the fourth consecutive month that the rate has risen and takes inflation to its highest since June 2014. Fuel prices hit a two-year high in early February, according to the RAC. As well as fuel, the ONS said food prices ...

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UK inflation rate jumps to 1.6%

Rising air fares and food prices helped to push up UK inflation to its highest rate since July 2014 in December. Consumer Prices Index (CPI) inflation rose to 1.6% last month, up from 1.2% in November, the Office for National Statistics (ONS) said. The rise was bigger than expected, with analysts having predicted 1.4%. The fall in the pound since the Brexit vote was starting to feed into the economy, said the BBC’s economics editor, Kamal Ahmed. ONS head of inflation Mike Prestwood said: “This is the highest CPI has ...

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UK inflation rate falls to 0.9% in October

The UK inflation rate registered a surprise fall in October, although there were signs that the pressure on consumer prices is starting to build. Consumer Prices Index (CPI) inflation fell to 0.9%, from 1% in September, the Office for National Statistics said. That was below the 1.1% predicted by economists, who said sterling’s fall would push October’s CPI higher. However, the ONS said factory gate prices and the costs of raw materials rose much faster in October. The price of goods leaving factories rose by 2.1%, faster than expected and ...

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Bank sees sharp rise in inflation in 2017

The Bank of England has made a dramatic rise to its inflation forecast for next year, predicting that the rate will almost triple. The Bank now expects inflation to hit 2.7% next year, up from the current rate of 1%. It also increased its prediction for economic growth from 0.8% to 1.4% for next year, but cut the 2018 forecast from 1.8% to 1.5%. An interest rate cut this year was no longer an option, the Bank indicated. “In light of the developments of the past three months, all MPC ...

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