Inflation has fallen below target: Should the UK be worried? January 13, 2015 Lower price rises are a boost for the UK but something to be feared in Europe. Why target inflation? Inflation is the increase in average prices in the economy over a period of time – normally a year. It is calculated by looking at a typical basket of goods, and seeing how the price [...]
UK Inflation: Walkmans, videos and rollerblades – this is what the basket of goods looked like last time inflation was this low January 13, 2015 The last time inflation was this low, shoppers were still buying Walkmans, recording their favourite TV shows using a VHS recorder – and rollerblades were A Thing. Prices rose just 0.5 per cent in December, the latest ONS figures reveal, the slowest rise since records began in 1989, and on a par with May 2000’s [...]
UK inflation: Consumer price index falls to 0.5 per cent in December January 13, 2015 Crumbling energy and petrol prices dragged the rate of inflation to a joint low since records began in 1989, forcing Bank of England (BoE) governor Mark Carney to write an open letter to the chancellor explaining the fall. The consumer prices index (CPI) rose just 0.5 per cent in the year to November, the Office [...]
Mark Carney set to write inflation letter next month January 12, 2015 INFLATION is expected to have dropped too far below the Bank of England’s target, prompting an embarrassing letter from Mark Carney to George Osborne to explain what went wrong. But instead of sending the letter the moment the inflation data is published – at 9.30am this morning – the governor of the Bank will now [...]
Businesses get 2015 confidence boost from tumbling inflation January 11, 2015 BUSINESSES expect a solid start to 2015, according to new survey data. The BDO optimism index released today by the eponymous accountants rose to 104.9 in December from 103.9 in November. The long-term average is signified by 100. The output index remained steady at 103.3 in December from November’s 103.2. The inflation index edged down [...]
Inflation falling after price wars over Christmas – London week ahead January 11, 2015 CONSUMER price inflation figures for December, due out tomorrow, will shine a light on to what extent falling oil prices and intense retail competition have boosted spending power in the UK. Analysts says the fall in inflation is likely to have been tempered by the fact that there was more retail discounting than usual in [...]
Bank of England keeps interest rates at 0.5 per cent for 70th month in a row January 8, 2015 The Bank of England's monetary policy committee (MPC) kicked off 2015 by keeping the base rate at 0.5 per cent. It's the 70th consecutive month rates have been held at historic lows, and the last rise was way back in March 2009. We'll have to wait until January 21 to find out who voted for [...]
Falling inflation set to prevent rate hike today January 7, 2015 CITY A.M.’s panel of economists have voted in favour of keeping interest rates at record lows of 0.5 per cent. Bank of England (BoE) officials will announce their latest decision at 12 noon today. The main concerns among our shadow monetary policy committee were inflation, growth and uncertainty. Inflation dropped to one per cent in November [...]
Bank of England financial crisis files: Crash pushed regulators to the brink January 6, 2015 The Bank of England was pushed close to breaking point during the financial crisis, according to previously unseen documents published today, with staff exhausted and bosses struggling to keep up with the pace of events. Officials repeatedly underestimated the scale of the crash, hoping the steps taken to address each problem – such as the [...]
Bank of England minutes: New documents reveal flaws in financial crisis response January 6, 2015 The former directors of the Bank of England (BoE) have come under heavy fire after minutes of meetings from the time of the financial crisis released today revealed it suffered from a lack of transparency as well as “groupthink”. “The Bank appears to have been a very hierarchical organisation, with clear signs of ‘groupthink’ among [...]