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 [...]
As the Bank’s latest minutes suggest, is it likely that inflation will bounce back soon? April 22, 2015 Andrew Sentance, senior economic adviser at PwC, says Yes Consumer price index inflation has been at zero for two months now. But looking ahead, the pressures are in an upward direction. The oil price has recently risen above $60 per barrel and petrol prices are firming up. The labour market continues to tighten, putting upward [...]
MPC minutes to be released as Tesco is set for annual report – London Report April 19, 2015 THE BANK of England’s monetary policy committee (MPC) will publish the minutes of its last rate setting meeting on Wednesday. The notes are expected to reveal officials’ thoughts on the strength of sterling and whether low inflation expectations will feed into the April wage negotiations. Traders will also be keeping a close eye on the [...]
After core inflation fell to a nine-year low of 1 per cent in March, should we be worried? April 15, 2015 Ashraf Laidi is chief global strategist at City Index, says Yes As UK inflation extends its hold in zero territory, it may only be a matter of time before core inflation (stripping out volatile factors like food) creeps closer to zero. A continuation of this trend may imply that disinflationary pressures coming into the production [...]