Higher transport prices could push UK out of deflation - London Report

RISING petrol costs and an uptick in air and sea transport prices may push the UK out of deflation in May.

Data due out tomorrow is expected to show that consumer prices edged up 0.1 per cent year-on-year in May.

IHS Global’s Howard Archer said consumer price inflation will likely hover close to zero during the summer, and then start heading up from the autumn.

On Wednesday, claimant count unemployment data is expected to show continuing improvement in the labour market, potentially falling by 15,000 in May to a record low of 748,800. Meanwhile, the Bank of England’s monetary policy committee meeting minutes for June, also out on Wednesday, will most likely show that all nine members voted to keep rates anchored to 0.5 per cent.

On the corporate calendar, today sees Latchways update the market, while Ashtead Group and Crest Nicholson will report tomorrow.

Betfair and Berkeley Group will report on Wednesday, and Poundland and Safestore are publishing numbers on Thursday.

Meanwhile, Auto Trader Group will update on Friday.