London Report: Drop in inflation unlikely to help consumers long

CONSUMERS are likely to receive a small piece of good news this week, with the inflation rate edging down for August.

But the upbeat data is likely to come before more rising prices, as analysts predict consumer price inflation will reach three per cent soon.

The inflation news, out tomorrow, is part of a slew of data, including house prices, producer and retail prices, retail sales and this month’s CBI trends for prices and orders.

Howard Archer, of IHS Global Insight, said: “Data are expected to show that consumer price inflation edged down further to 2.7 per cent in August from 2.8 per cent in July, as a smaller year-on-year increase in petrol prices and competitive pricing on the high street countered likely higher food prices. Looking ahead, consumer price inflation could yet touch three per cent in the near term.”

On Wednesday, the Bank of England will also release minutes of its last Monetary Policy Committee (MPC) meeting, revealing decisions on quantitative easing (QE), interest rates and forward guidance. And Friday will bring more economic clues, with the release of public sector borrowing and finance figures for last month.

The corporate calendar starts today with reports from Allergy Therapeutics, Petra Diamonds, Transense Technologies, Corac Group, NetDimensions Holdings, Optimal Payments, PhotonStar Led Group, SimiGon, TLA Worldwide, Waterlogic and EKF Diagnostics Holdings.

Tomorrow Galliford Try, K3 Business Technology Group, Bango, Bond International Software, Burford Capital, Camco Clean Energy, Camkids Group, Corero Network Security, IG Group Holdings and Imagination Technologies will all update the market.

Wednesday’s reports come from Redrow, Smiths Group, Town Centre Securities, Brightside Group, Cello Group, EG Solutions, JD Sports Fashion, Serviced Office Group and French Connection.

On Thursday Swallowfield, Wilmington Group, Sinclair IS Pharma, Global Market Group, Gulf Keystone, IG Seismic Services, IQE, Mission Marketing Group, Networkers International, Premier Farnell, Global Energy Development, Anpario, ASOS, Booker Group, United Utilities Group and Northgate will give figures.

Friday’s reports come from BrainJuicer Group, Public Service Properties Investments and Tawa.