King warns over further inflation rises February 16, 2011 The Governor of Bank of England, Mervyn King, warned that inflation will rise sharply in the first half of this year before falling back next year. But he said there were “large risks” that inflation could dip under or go over the Bank’s two per cent target. He said that factors over which the UK [...]
Inflation hits 27-month high February 15, 2011 INFLATION reached its highest rate since November 2008 last month, as escalating price pressures and tax hikes continue to hammer households suffering from sluggish wage growth and rising unemployment. While inflation on the consumer price index (CPI) climbed 0.3 per cent to four per cent, the tax and price index (TPI) – which includes the [...]
Commodities dent FTSE 100 despite strong banking stocks February 15, 2011 BRITAIN’S s top share index closed lower yesterday as strength in banking stocks, inspired by forecast-busting results from Barclays, was outweighed by a broad retreat in the mining sector on commodity price wobbles. The FTSE 100 index closed down 23.01 points, or 0.4 per cent, at 6,037.08. The FTSE 250, FTSE 350 and AIM 100 [...]
Disappointing economic data keeps markets in the red February 15, 2011 The FTSE has spent the day in the red and closed down 0.38 per cent at 6,037.08 after disappointing US economic data and news. Miners were also led down by news from China, where an above-target 4.9 per cent increase in inflation raised the prospect of further interest rate rises. Banks were buoyant, though, [...]
Indian inflation eases February 14, 2011 The Indian government expects headline inflation to ease to seven per cent by the end of March, finance minister Pranab Mukherjee said yesterday, matching other economic forecasts. The wholesale price index, India’s main inflation gauge, marginally eased to 8.23 per cent in January but the central bank will likely keep tightening monetary policy because price [...]
Don’t blame speculators for soaring food prices February 14, 2011 Experts often tell us that retail investors should steer well clear of speculating in the soft commodities market. It’s too risky, they warn, with too many variables for the average private investor to make a fully informed choice. Chuck in a splash of unpredictable weather and a dash of political interference, and it’s all too [...]
ECONOMISTS’ VIEWS: IS INFLATION HERE TO STAY? February 13, 2011 JAMIE DANNHAUSER | LOMBARD STREET RESEARCH “We broadly sympathise with the view of the Bank – that inflation will peak this month or in March, but fall heavily in January next year and be below target through next year.” IAN STEWART | DELOITTE “My assumption is that a good deal of the excess inflation relates [...]
Inflation fears turn up heat ahead of Bank rate decision February 9, 2011 RISING inflation expectations are adding pressure on the Bank of England to lift interest rates, ahead of today’s latest decision by the monetary policy committee (MPC). “Inflation expectations have soared since the last quarter,” said researcher Monica Insoll yesterday, referring to a survey of investors conducted for the ratings agency Fitch. Over half the respondents [...]
Bernanke says US job growth too low February 9, 2011 US unemployment remains too high for comfort despite the economy showing signs of strengthening recovery, Federal Reserve chairman Ben Bernanke has said. In testimony to the US House of Representatives’ Budget Committee that largely echoed a speech he delivered last week, Bernanke also warned about the dangers of unsustainable budget deficits. But his commitment to [...]
VAT shock yet to be passed to consumers February 8, 2011 INFLATION in UK shops rose to 2.5 per cent in January – from 2.1 per cent in December — despite retailers absorbing much of the hike in VAT, a comprehensive survey revealed today. Even more price pressure could spill through to consumers in the coming months, the British Retail Consortium warned. “Retailers generally took the [...]