Why businesses and employees are cheering low inflation March 24, 2015 Low inflation will benefit businesses which are likely to pass gains onto employees through wage hikes, businesses have said. James Sproule, chief economist at the Institute of Directors said: "We welcome the news that inflation has once again fallen. It is particularly encouraging that this has been driven by falling fuel costs. This is putting [...]
Higher fuel prices push US inflation to its first rise since October March 24, 2015 Inflation has started to the pick up in the United States, after fuel prices rose for the time since June last year, adding to broader gains in other sectors. Figures released today by the Bureau of Labor Statistics showed prices rose by 0.2 per cent month-on-month basis, reversing a 0.7 per cent tumble in January. The annual [...]
Surprise as UK inflation falls to zero for first time since current records began in 1989 March 24, 2015 Inflation fell to zero in February for the first time since current the current records began in 1989, moving Britain closer to deflation, official statistics showed today. Figures released by the Office for National Statistics showed prices didn't increase at all in February compared with the same time a year ago. The figure came [...]
Britain likely to reach a record low for inflation – London Report March 23, 2015 CONSUMER price inflation is likely to have fallen to a new record low of 0.2 per cent in February, moving Britain closer to deflation. Official figures out tomorrow look set to show the fall in the index, which comes after the previous low of 0.3 per cent in January. Howard Archer, of IHS Global Insight, [...]
Food and oil prices drag the UK towards CPI deflation March 22, 2015 Could this be the week the UK officially goes into deflation? Office for National Statistics figures out this Tuesday are expected to show that UK Consumer Price Index (CPI) prices dropped 0.1 per cent in February, after hitting record lows of 0.3 per cent last month. Behind the possible entry into deflation is a drop [...]
Budget 2015: George Osborne’s plans depend on strong growth – let’s hope it actually materialises March 18, 2015 George Osborne used the opportunity of the last Budget before the election to set out his manifesto. The Budget was based on “growth and investment”, he claimed, and he promised an end to austerity towards the end of the next Parliament, defined entirely as a promise to start expanding government spending again by 2019. The [...]
Budget 2015: Here are George Osborne’s best quotes plus his Budget speech in full March 18, 2015 George Osborne's final Budget during this parliament had few surprises but plenty of great quips, including – to the dismay of bookies everywhere – a quip about Ed Miliband's now-infamous second kitchen. Here's a selection of our favourites from today's big speech. (Source: Getty/City A.M.) (Source: Getty/City A.M) (Source: Getty/City A.M.) [...]
Bank of England minutes: Strong pound risks exacerbating deflation March 18, 2015 Bank of England policymakers think the strong pound could exacerbate the current period of low inflation. Minutes released today showed the monetary policy committee believes divergent monetary policy trends, and a strengthening economy, could cause the pound to appreciate further. "This has the potential to prolong the period for which consumer price inflation would remain [...]
Eurozone core inflation beats expectations, but the bloc is still in deflation March 17, 2015 It is hardly a time for unbridled celebration; the Eurozone remains in deflation at -0.3 per cent, but the core reading showed stronger than expected growth of 0.7 per cent year-on-year, compared to the 0.6 per cent analysts had been expecting. The data may lead to suggestions that Mario Draghi's quantitative easing (QE) programme is [...]
Carney rate rise comments sends sterling stumbling March 12, 2015 BANK of England governor Mark Carney yesterday said that low inflation outside of the UK, as well as a strong sterling, could cause the central bank to push back a rate hike. Sterling dropped on the comments – it fell by 0.5 per cent against the dollar yesterday to a low of $1.4850. It marks [...]