Inflation hits eight-month high of 3.7 per cent January 18, 2011 A surge in oil prices drove consumer price inflation up far more than expected in December to an 8-month high of 3.7 per cent – well above the Bank of England’s own forecasts. The Office for National Statistics said the annual rate of CPI rose to 3.7 per cent in December from 3.3 per cent [...]
INVESTORS GIVEN CAUSE TO CHEER January 17, 2011 CFD MARKET STRATEGIST, GFT EUROZONE investors had cause to cheer last week as bond auctions in Portugal, Spain and Italy went better than expected. As the auctions approached, their success looked pretty much guaranteed thanks to the efforts of the European Central Bank (ECB), along with promises of support from China and even chronically-indebted Japan. [...]
Developed markets should expect inflation January 16, 2011 INTEREST rates may still be at all time lows in the developed world but inflation is the only story in town for much of the emerging world. It will soon be the same story in the West. In 2008, spiralling food prices brought people in Asia, Africa and Latin America onto the streets. Many fear [...]
BoE credibility at risk over inflation January 16, 2011 THE Bank of England’s credibility could be on the line tomorrow if UK inflation spikes even further above expectations. Economists expect consumer price index (CPI) inflation for December to approach 3.5 per cent, when the figure is released tomorrow by the Office of National Statistics (ONS). And price pressures could see inflation hit twice the [...]
Cash injection for the UK economy could risk deflation January 16, 2011 AN INJECTION of cash into the UK economy through quantitative easing could risk the economic recovery and lead to deflation. Fathom Consulting has warned a fresh round of quantitative easing (QE) could become self defeating, as higher headline inflation, without an increase in higher wages, would ultimately be deflationary. Analysts warned a fresh injection of [...]
US retail sales back to annual growth January 14, 2011 SALES at US retailers in 2010 reversed two years of contraction and posted the biggest gain in more than a decade, a government report showed. Retail sales rose 0.6 per cent in December, slightly less than expected, but the growth was still the sixth straight month of growth, the Commerce Department said. And total sales [...]
Factory gate inflation rises January 14, 2011 Factory gate inflation rose faster than expected in December to its highest annual rate since April, driven by a sharp rise in the price of crude oil and food input costs, official data showed. The news is likely to concern the Bank of England as consumer price inflation is already more than a percentage point [...]
Fallback in US data shakes faith in recovery January 13, 2011 US JOBLESS claims jumped to their highest level since October last week while food and energy costs lifted producer prices in December. However, a surge in exports to their highest level in two years helped narrow the US trade deficit in November, an encouraging sign for fourth-quarter economic growth. Despite a string of recent data [...]
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 [...]