Don’t fear the deflation bogeyman: It’s unlikely to harm the UK economy March 30, 2015 As flat as a pancake. Last week’s inflation figures showed that the Consumer Price Index (CPI), the main measure of the prices of goods and services bought by households, was the same in February as it was a year earlier. This has led many to ponder the likely economic implications of deflation – if the [...]
Another BoE official just poured cold water on deflation fears March 27, 2015 Bank of England deputy governor Ben Broadbent has joined a chorus of rate-setters who've said the risk of Britain slipping into a deflationary spiral remains low. "The likelihood of a broad and protracted deflation, afflicting wages as well as prices, is pretty low," he said. So far, low inflation has been a boon for the [...]
Japan just joined Britain in the “noflation” club March 27, 2015 Core consumer inflation in Japan stalled in February, meaning it has joined now Britain in the "noflation" club. The government said that its key inflation gauge, which strips out the effect of last year's sales tax hike, was flat from a year earlier. This means it has moved further away from the Bank of Japan's target [...]
Robust retail sales quell low inflation fears March 26, 2015 THE UK retail industry grew rapidly in February, dispelling fears that low inflation would be harmful to the economy. Some economists are concerned that if prices are dropping, consumers may opt to delay purchases. However, retail sales were 5.7 per cent higher in February than in the same month last year, according to figures released [...]
Retail sales rise as shoppers reap “noflation” in February March 26, 2015 Retail sales beat expectations as low prices encouraged people onto high streets across the country in February, figures out today show. Sales on the high street rose 5.7 per cent annually according the Office for National Statistics. It marked the 23rd consecutive month of year-on-year growth, the longest winning-streak since May 2008. Retail sales grew 0.7 [...]
Supermarket price war and drops in oil prices drag UK inflation down to zero March 24, 2015 Hard-pressed households gained a reprieve in the past year – prices held flat in the 12 months to February, official figures showed yesterday. Economists now believe deflation is just around the corner, as falling fuel and food prices keep easing the pressure on family budgets. It is the first time inflation has fallen to zero [...]
FTSE hits a high but slips back despite UK inflation data – London Report March 24, 2015 ANOTHER day, another all-time high was the call yesterday for Britain’s top share index – although it did slip back at the close – and record low UK inflation data kept investors confident over the market’s longer-term prospects. The blue-chip FTSE 100 index rose as much as 0.4 per cent to a record intraday high [...]
Interactive: 33 charts showing how UK inflation compares to every inflation rate in every EU country March 24, 2015 Today was the day the UK hit the threshold: inflation fell to 0 per cent, its lowest since the current measure of inflation began in 1989. More on this story: UK inflation falls to its lowest since records began The fall was caused by dropping energy and food prices, fueled by the global oil-price slump and [...]
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 [...]