Food inflation hits highest rate ever recorded September 28, 2022 FOOD inflation surged to its highest rate on record since the index started in 2005, according to freshly published data. According to the British Retail Consortium (BRC) and NielsenIQ shop price index, food inflation hit 10.6 per cent in September, up from 9.3 per cent in August. For fresh food, inflation swelled to 12.1 per [...]
IMF “monitoring developments” in UK after currency fall and mini-budget September 27, 2022 The International Monetary Fund gave Kwasi Kwarteng and Liz Truss a slap on the wrist this evening, with a spokesman saying it did not “recommend large and untargeted fiscal packages” amid inflation concerns. The warning from the IMF comes after another day of currency fluctuations, triggered by a so-called ‘mini budget’ of tax cuts announced [...]
London’s FTSE 100 dragged down by house builders as more rate hikes loom September 27, 2022 London’s FTSE 100 fell today driven lower by house builders tumbling on the prospect of higher interest rates. The capital’s premier index lost 0.52 per cent to drop to below 7,000 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, tumbled 2.36 per cent to [...]
House prices may tumble a fifth if Bank of England hikes rates steeply, economists warn September 27, 2022 House prices could tumble as much as 21 per cent if the Bank of England is forced to hike interest rates steeply in response to the government’s tax and borrowing splurge fuelling inflation, City economists have warned. Mortgage affordability – the ratio of a home purchase loan to the size of the borrower’s income – [...]
London’s FTSE 100 squeezes out gain as house builders tumble September 26, 2022 London’s FTSE 100 squeezed out a small gain today despite investors ditching house builders in response to the Bank of England signalling it will hike interest rates sharply. The capital’s premier index edged 0.03 per cent higher to below the 7,020.95 points, while the domestically-focused mid-cap FTSE 250, which is more aligned with the health [...]
Inflation forces one in three Brits to trade down to cheaper products September 26, 2022 Brits are trading down to cheaper products in response to rampant inflation squeezing their finances, a survey published today shows. A third of consumers are buying more own brand products, while one in four are turning to cheaper retailers in a bid to cap their weekly shop, according to consultancy KPMG. The research illustrates the [...]
Pound falls below $1.10 for first time in almost 40 years after mini-budget September 23, 2022 Pound Sterling continued to tumble after the mini-budget this morning, plummeting to below $1.10 for the first time since 1985. Financial markets ramped up expectations for interest rates to hit a peak of more than 5 per cent midway through next year, as Citi analysis warned the mini-budget “risks a confidence crisis in sterling”, as [...]
Liz Truss cost of living support fails to prevent new consumer confidence low September 23, 2022 Liz Truss’s cost of living support has done nothing to lift Brits’ optimism out of the doldrums, a closely watched survey published today reveals. Consumer confidence collapsed five points over the last month to minus 49, the lowest since research firm GfK started tracking the figures in 1974. The survey was carried out between early [...]
Bank of England shirks historic rate hike despite warning of longer inflation September 22, 2022 The Bank of England today shirked the biggest interest rate hike since the late 1980s despite inflation threatening to run hot for months. Borrowing costs climbed 50 basis points to 2.25 per cent, their highest since November 2008 and the seventh rise in a row, the Bank announced. Before the decision, City economists and markets [...]
Liz Truss tax cuts must be bolder to revive UK economy, Thatcherite thinks tank claims September 21, 2022 Liz Truss must be even bolder than cancelling the corporation tax rise to unlock the UK’s full economic potential, a Thatcherite think tank has claimed today. The prime minister’s chancellor, Kwasi Kwarteng, is expected to reverse the six percentage point corporation tax hike at this Friday’s mini-budget. The move will generate a 1.2 per cent [...]