Wednesday, 26 September, 2018

United Kingdom inflation falls to 2.7 percent in February

United Kingdom inflation falls to 2.7 percent in February United Kingdom inflation falls to 2.7 percent in February
Jodi Jackson | 21 March, 2018, 08:17

In the latest United Kingdom inflation figures, the Consumer Prices Index (CPI) has dropped to 2.7 per cent in February - from 3 per cent in January, suggesting the squeeze on households may be ending.

"Inflation is still above target after all, and the Bank of England would love to build up some firepower to deploy in the event of an economic slowdown".

Inflation cooled in February as the impact of the Brexit-hit pound on everyday prices began to "work through the system".

Petrol prices fell on the month and food prices rose more slowly than in February 2017, he said.

Economists and the Bank believe inflation's upward march has run its course and will start to unwind over the coming months.

The Consumer Prices Index including owner-occupiers' housing costs (CPIH) - the ONS' preferred measure of inflation - was 2.5% last month, down from 2.7% the month before.

The largest downward contribution was transport and food prices, which rose by less than a year ago while prices for accommodation also dropped.

The BoE expects wages to grow more quickly than inflation later this year.

On a month-on-month basis, inflation rose to 0.8 percent in February from 0.3 percent in January.

The fall in food price growth was partly down to a shortage of salad and vegetables previous year when bad weather hit crops in southern Mediterranean countries, the ONS said.

Incomes data do lag prices, but if the trends continue (inflation easing and wages increasing) then it is likely that many millions of people will see their real incomes start rising again by the end of the year.

"We are increasing the National Living Wage which is already helping the lowest earners see their pay rise by nearly 7 per cent above inflation".

The move in inflation came largely in response to the double digit referendum-induced devaluation of Sterling, which raised the cost of imported goods for companies and consumers.

"This fallback in inflation therefore provides little reason for the Bank of England to hold back from gradually raising interest rates".

It increased interest rates in November for the first time in more than a decade.

However, Samuel Tombs, chief United Kingdom economist at Pantheon Macroeconomics, said: "Inflation is falling back to the 2% target much more rapidly than the Monetary Policy Committee (MPC) expected - undermining the case for raising interest rates again as soon as May".

The BoE warned in February that it will raise interest rates faster than markets had been expecting if the inflation outlook evolves in line with its latest set of forecasts.

Recommended

Martin faces charges for Instagram post Martin faces charges for Instagram post Perez reported the school later sought a restraining order against the 28-year-old. Former NFL offensive tackle Jonathan Martin turned himself into police Thursday.

New 5-passenger Volkswagen Atlas Announced New 5-passenger Volkswagen Atlas Announced Woebcken, president and chief exec of VWOA (Volkswagen of America) lauded the Atlas and its contribution to VW's marketing effort. Approximately US$340 million (about RM1.3 billion) will be invested by Volkswagen to bring the five-seat Atlas to market.

ITV cancel this week's Saturday Night Takeaway ITV cancel this week's Saturday Night Takeaway Exclusive video footage obtained by The Sun showed Ant being put into a police auto following the smash outside a disused brewery. The star has also been working on Britain's Got Talent all while going through a divorce with wife of ten years Lisa Armstrong .

Reward offered for missing rugby player Reward offered for missing rugby player The tournament reportedly was offering a $1,000 reward for information on Dombroski's location, according to NBC Philadelphia . We extend our deepest sympathies to the Dombroski family along with Mark's teammates, classmates and friends.

Six More Years: Putin Crushes Opponents in Landslide Election Victory Six More Years: Putin Crushes Opponents in Landslide Election Victory Opposition and independent monitors reported cases of alleged fraud such as ballot stuffing and repeat voting. He scoffed at the notion of waiting until he becomes eligible to run again in 2030-"It's ridiculous".

Actress Cynthia Nixon challenging Cuomo in Democratic primary Actress Cynthia Nixon challenging Cuomo in Democratic primary Former Syracuse mayor Stephanie Miner, a Democrat who has clashed with Cuomo, also has been considering entering the race. She noted that for the past 17 years, she's been "fighting for better schools, better health care, and LGBTQ equality".

PM Abbasi meets US Vice President Mike Pence PM Abbasi meets US Vice President Mike Pence United States has once again asked Pakistan to "do more" against terrorist organizations. After Abbasi request, the meeting between two leaders was held at US Naval Observatory.

Year-Old Blue Ivy Carter Bid $19000 on a Piece of Art Year-Old Blue Ivy Carter Bid $19000 on a Piece of Art The six-year-old daughter of living legends Beyonce and Jay-Z just made a huuuuuge offer at the Wearable Art Gala Saturday night. The theme of the evening was "Waco to Waconda" inspired by the box-office record-breaking film Black Panther .

United Kingdom 'Anticipated' Expulsion Of Moscow Diplomats United Kingdom 'Anticipated' Expulsion Of Moscow Diplomats The British government has imposed sanctions on Russian Federation and expelled 23 diplomats in retaliation for the attack . Russian Federation is expected to announce the expulsion of some British diplomats in a retaliatory measure.

Michigan Stuns Houston With Epic Buzzer-Beater — Late-Night Madness Michigan Stuns Houston With Epic Buzzer-Beater — Late-Night Madness Just before the game-winner, the Wolverines had chances to tie and take the lead, but narrowly missed a number of shots. Abdur-Rahkman and Moe Wagner scored 12 points apiece for MI , but it was the unheralded freshman who stole the show.

Moses beat Ndidi, Iheanacho to FA Cup semis as Chelsea edge Leicester Moses beat Ndidi, Iheanacho to FA Cup semis as Chelsea edge Leicester Not to be deterred, he slipped a sumptuous pass into the path of Alvaro Morata , who duly tucked away his first goal of 2018. Wigan knocked Manchester City out in the previous round and was looking to beat its fourth Premier League side.

Ukraine protests to United Nations over Russian presidential poll in Crimea Ukraine protests to United Nations  over Russian presidential poll in Crimea Russian authorities have organized four polling stations in diplomatic missions located in Ukraine, namely in Kiev, Kharkiv, Lviv, and Odessa.

Carlos Carvalhal: 'Tottenham Hotspur deserved to beat Swansea City' Carlos Carvalhal: 'Tottenham Hotspur deserved to beat Swansea City' After a tame opening to the quarter-final, Eriksen brought the tie to life with a stunning effort to open the scoring. Swansea City were denied a first FA Cup semi-final appearance since 1964 by a classy Tottenham Hotspur .

Swansea boss Carvalhal not expecting weakened Spurs without Kane Swansea boss Carvalhal not expecting weakened Spurs without Kane He will be hoping to better his returns on Saturday and boost his chances of carving out a regular spot in the starting XI. Tammy Abraham is set to lead the attack with Andre Ayew cup-tied, while loan midfielder Andy King is also ineligible.

Celtics hopeful Marcus Smart can return in playoffs Celtics hopeful Marcus Smart can return in playoffs Celtics head coach Brad Stevens raised this as a possibility on Wednesday, but said Smart was still evaluating his options. The point guard had the thumb taped and was able to finish the game. "And there's a chance that he would not be back".