UK wages grow at fastest rate since September 2015, while unemployment rate retains 11-year low January 18, 2017 Wages grew faster than expected at the end of 2016, while unemployment stayed steady at 4.8 per cent, as the UK labour market showed little sign of any short-term Brexit effect. Weekly pay grew by an annual rate of 2.8 per cent including bonuses from September to November, according to the Office for National Statistics. [...]
US inflation breaks above two per cent for first time since 2014 January 18, 2017 Inflation in the US broke through the Federal Reserve's two per cent target in December for the first time since 2014, strengthening the case for a rise in interest rates over the coming year. Consumer prices rose by an annual rate of 2.1 per cent in December, after inflation of 1.7 per cent the month before, [...]
Higher inflation boosts ECB hawks’ case for tightening ahead of monetary policy meeting January 18, 2017 Inflation in the Eurozone rose sharply in December, the European Commission has confirmed, adding further to pressure on the European Central Bank (ECB) to begin withdrawing its historically expansive monetary policy support on Thursday. Consumer prices across the bloc increased by 1.1 per cent, a steep rise from the 0.6 per cent growth recorded the [...]
The nightmarish state of the public finances makes NHS reform even more urgent January 18, 2017 While Westminster was awaiting the first lines of Theresa May’s Brexit speech yesterday morning, the government’s fiscal watchdog issued a devastating judgement on the long-term health of the country’s finances. According to the Office for Budget Responsibility (OBR), the accelerating cost of the NHS will double the national debt relative to GDP by the middle [...]
Why do bad companies stay in business for so long? Just ask an economist January 18, 2017 A bookseller in the Yorkshire Dales has hit the headlines, branded a “shopkeeper from hell”. He called a customer a “pain in the arse”, and has been the subject of numerous complaints to the local parish council about his rudeness. To complete the outrage, he charges 50p as an entry fee to his shop. The [...]
Higher fiscal spending could prompt faster tightening of monetary policy says Federal Reserve’s Brainard January 17, 2017 Donald Trump’s economic policy could lead to a faster pace of monetary policy tightening, according to an influential member of the US Federal Reserve’s rate-setting body. If the US President-elect’s policies lead to higher inflation at a time when the US is approaching full employment, the Federal Open Market Committee (FOMC) could be forced to [...]
Theresa May must be even bolder to make Global Britain a free-trading success January 17, 2017 “Fear not, we are of the nature of the lion.” – Queen Elizabeth I There was just enough in Theresa May’s speech today to reassure those who campaigned to leave the EU. Crucially, she made clear that we are definitely leaving the Single Market and taking control of our borders. She suggested only a great [...]
Germans leave Brexit behind as economic sentiment recovers from July lows January 17, 2017 Confidence in the German economy has risen to its highest point since before the UK’s Brexit vote, according to a long-running survey of business in Europe’s largest economy. The ZEW Indicator of Economic Sentiment for Germany increased slightly in January 2017. The indicator rose by 2.8 points to reach 16.6 points, although this was less [...]
Inflation hits 1.6 per cent: Experts react to biggest price rise in two years January 17, 2017 Inflation has come in higher than expected as weaker sterling continues to feed through into higher prices for the UK consumer. The 1.6 per cent increase in December surprised analysts. The Bank of England expects inflation to hit 2.7 per cent by the end of this year. It has a legal target rate of two [...]
Thanks Brexit: Now the price of iPhone apps are about to rise January 17, 2017 It's not just the price of your, Freddo, Fondant Fancy and Marmite which are being pushed up by the falling value of the pound. Apple is the latest company to raise prices, this time for apps you download from the app store by as much as 25 per cent, 9to5mac reports. The cost of apps downloaded on your [...]