Enjoy it while you can! Analysts say deflation will not be here to stay May 19, 2015 Deflation has finally arrived in the UK for the first time since the 1960s, but economists are almost unanimous in saying it will be temporary. Inflation – as measured by the year-on-year change in the consumer price index (CPI) – was minus 0.1 per cent in April. The last time inflation was this low, [...]
The UK in deflation: 33 charts showing how UK inflation rate compares to every inflation rate in every EU country May 19, 2015 The UK officially entered deflation today: prices shrank by 0.1 per cent in the 12 months to April 2015 – the first time it's dipped into negative territory since the 1960s. Read more: Inflation turns negative for the first time in over 50 years – but it should only be a blip The fall was caused by dropping energy [...]
Inflation turns negative for the first time in over 50 years – but it should only be a blip May 19, 2015 Britain fell into deflation for the first time since the 1960s after data released today showed the consumer price index (CPI) had dipped into negative territory. The Office for National Statistics said prices fell 0.1 per cent in the year to April on a fall in air and sea fares due to the timing of [...]
Britain could be about to enter brief deflation May 17, 2015 The UK could enter deflation for the first time since comparable records began when figures are released tomorrow morning. Yet most economists believe inflation’s venture into negative territory will be short-lived, given that oil and global food prices have halted their declines. The consumer price index (CPI) – the basket of goods used to measure [...]
Five key numbers from the Bank of England’s quarterly inflation report May 13, 2015 The Bank of England's quarterly inflation report, setting out its forecasts for economic growth and inflation, was published today offering the first insight into officials' thinking since they entered election purdah six weeks ago. Here are five key figures from the report: 1. Gross domestic product growth – 2.5 per cent: The Bank of England has [...]
Bank of England inflation report: UK growth expectations cut May 13, 2015 The Bank of England today slashed forecasts for how much its expects the economy will grow this year to 2.5 per cent, down from 2.9 per cent. Threadneedle Street also said it expects interest rates to remain close to historical lows for the foreseeable future, before rising some time in the second quarter of 2016. [...]
Sweden set to loosen monetary policy again as deflation strikes May 12, 2015 Prices fell again in Sweden in April despite policymakers’ attempts to banish deflation through very loose monetary policy, official figures showed yesterday. Consumer prices fell 0.2 per cent on the year, sliding after two months of positive inflation numbers. Policymakers at the Riksbank held interest rates at minus 0.25 per cent at their April meeting, [...]
Bank of England to reveal interest rate and inflation report – London Report May 10, 2015 THE BANK of England (BoE) will announce the latest Bank rate today, with economists expecting it to remain at its historic 0.5 per cent low. On Wednesday the BoE will announce its widely-watched inflation report. Employment and unemployment figures are also due that day and are expected to show a strong market. The corporate calendar [...]
Why the next government must not take economic recovery for granted May 7, 2015 With results still likely to be trickling in from yesterday’s General Election, it is worth reminding ourselves that, whichever party – or combination of parties – ends up forming the next government, they will be faced with the same economic conditions. By and large, these are fairly good. But the recovery should not be taken [...]
Eurozone inflation rose to zero in April April 30, 2015 Eurozone inflation rose to zero in April, ending a fourth-month stretch of price declines across the euro area. A flash estimate from official statistics agency Eurostat showed that Eurozone annual inflation was flat in April, having risen to -0.1 per cent a month earlier. It's up considerably from a low of -0.6 in January. The biggest [...]