Low inflation isn’t abnormal: It’s a feature of a competitive market economy September 23, 2014 FEARS of deflation are rising across Europe, as inflation keeps edging down to lower and lower rates. Eurostat estimates the rate of inflation in the Eurozone in the year to August to be only 0.4 per cent, compared to 1.3 per cent in the year to August 2013. Negative rates were observed in eight EU [...]
Wages increase by 0.6 per cent, 0.9 per cent behind inflation September 17, 2014 The gap between wages and consumer price inflation is still stubbornly wide, official figures published this morning showed. Earnings not including bonuses were up 0.7 per cent over the 12 months to the end of July, but inflation is almost a percentage point higher at 1.5 (1.6 during July). Unemployment data was also out this [...]
As CPI inflation falls to 1.5 per cent, should the Bank hold off rate hikes until next summer? September 16, 2014 Chris Williamson, chief economist at Markit, says Yes. Quite possibly. The case for rates to stay low for longer is being aided by several factors. Global oil and commodity prices are low, and likely to stay historically weak due to subdued global demand (especially in key emerging markets such as China) and, in the case [...]
Inflation falls again, to 1.5 per cent September 16, 2014 The Consumer Prices Index fell to 1.5 per cent in the year to August, down from 1.6 per cent the month before, as low wages and pressures on recovery in European economies continued to take their toll. The Office for National Statistics said the measure was pushed down by a drop in the price of [...]
Rate of inflation is not as bad as you think but survey shows consumers are feeling the pinch September 5, 2014 The Bank of England has released the results of its latest survey into what consumers believe the rate of inflation will be over the next 12 months. The figure was up 0.2 percentage points to 2.8 per cent, while respondents believed the current rate to be around 3.4 per cent. Were the true figure to be hovering [...]
UK inflation rate fell to lowest level in five years last month June 17, 2014 Inflation fell to its lowest level in five years this May, coming in at just 1.5 per cent, despite the continued strength of the economic recovery. A 3.2 per cent drop in air fares between April and May, driven by a spike around the Easter school holidays, helped to trim CPI to its slowest growth [...]
UK inflation falls to 1.9pc in January February 18, 2014 UK inflation figures have shown further signs of improvement in the recovery, falling below the Bank of England’s inflation target for the first time since November 2009. Measured by the consumer price index (CPI), prices rose by 1.9 per cent in January, below the two per cent expected. Month-on-month, CPI dropped 0.6 per cent. According [...]
UK inflation slowdown tests Bank of England’s forward guidance August 13, 2013 The rate of inflation in the UK slowed in July, triggering speculation about how this could affect the central bank's future monetary policy. The Office for National Statistics' consumer price index decelerated to an annual rate of 2.8 per cent, down slightly from the 2.9 per cent the month before. The fall was driven primarily [...]
UK inflation jumps to 2.7 per cent November 13, 2012 The consumer prices measure of inflation jumped to 2.7 per cent in October, up from 2.2 per cent in September, with the hike in university fees behind the rise. Aside from university tuition fees, price rises in food and transport also contributed to the increase, according to official figures from the Office for National Statistics. [...]