Bank of England keeps interest rates on hold January 13, 2011 The Bank of England kept its key interest rate at a record low 0.5 per cent as expected on Thursday, judging that longer-term downward pressure on prices will quell an expected short-term spike in inflation. Consumer price inflation was 3.3 per cent in November and is forecast to rise to four per cent in the [...]
US cuts fuel fear of food inflation January 12, 2011 SOYBEAN and corn futures jumped yesterday, helping power a broad rally across commodities as both hit 30-month highs after the US government made deep cuts in crop stocks. The run-up in agricultural prices added to concerns about food inflation around the world. Soybean and corn futures jumped four per cent each – to hit $320 [...]
Wall St gets boost from banking stocks January 12, 2011 US stocks ended solidly higher yesterday after European debt fears eased and sparked a broad advance, led by banks and commodity-related shares. Investors expect further flows into equities on speculation the economy will strengthen. About seven stocks rose for every three that fell on the New York Stock Exchange. Sectors typically helped by rising inflation, [...]
Young, hopeful and about to start boosting growth rates January 12, 2011 FOR MUCH of the last two decades, the Chinese economy has astonished investors and worried politicians. Growth of an average of 9.3 per cent has been driven by an astonishing bout of domestic investment. But it has also been helped on by an immense “demographic dividend”, engineered by the country’s one child policy. But with [...]
Credibility risk places pressure on BoE’s King January 12, 2011 BALLOONING global prices and stubbornly above-target inflation in the UK are piling pressure on the Bank of England’s rate setting committee to tighten its monetary policy. The Monetary Policy Committee (MPC) makes its latest announcement on interest rates at lunchtime today. The MPC is expected to hold rates at the historically low 0.5 per cent, [...]
Corporate sales boost Sodexo January 12, 2011 FRENCH caterer Sodexo kept its 2011 goals for higher sales and profits, despite North American unemployment, a struggling public sector in Europe, and rising food prices that make the economic climate challenging. The world’s second-biggest catering services company after Britain’s Compass Group posted a 10.5 per cent rise in fiscal first-quarter sales yesterday. Sodexo benefitted [...]
M&S sales rise but year ahead set to be harsh January 11, 2011 MARKS & SPENCER saw sales rise in the key Christmas period but the retailer warned that 2011 would be tough, with austerity measures and the spectre of inflation rises to take their toll. Same-store sales rose 2.8 per cent in the UK in the 13 weeks to 1 January despite the impact of the snow. [...]
UK’s retailers struggle with price inflation January 11, 2011 SHOPS are battling the effects of rising inflation, the British Retail Consortium (BRC) announced today. Shop price inflation hit 2.1 per cent last month, the group said, up from two per cent in November. The rate will concern consumers, but is “well below the wider consumer price index” (CPI) as retailers absorb the effects of [...]
G20 reassures that it will tackle food price inflation January 7, 2011 THE Group of 20 leading economies have started working-level talks on the soaring food prices that are stoking fears of a repeat of the 2008 food crisis. Global food prices hit a record high last month, outstripping the levels that sparked riots in several countries in 2008, and key grains could rise further, the United [...]
Falling real wages don’t have to mean pain January 6, 2011 THANKS to inflation of 4.7 per cent, most workers will probably see cuts in the real purchasing power of their salaries in 2011. But there is no reason for that to cut into your living standards. Here are some easy New Year’s resolutions to follow that will help you endure austerity Britain without feeling too [...]