Inflation slows in February as Brexit hit to pound fades

21 March, 2018, 08:14 | Author: Natasha Holloway
  • UK consumer price

The unexpected fall in inflation comes thanks to a drop in fuel and food prices, according to the Office for National Statistics.

"Hotel prices also fell and the cost of ferry tickets rose more slowly than past year, when prices were collected on Valentine's Day when many people could have been taking mini-breaks", he said.

Manufacturers increased the prices they charged by 2.6 percent compared with 2.8 percent in January, the slowest increase since November 2016 and slightly weaker than the Reuters poll consensus forecast of 2.7 percent.

"This fallback in inflation therefore provides little reason for the Bank of England to hold back from gradually raising interest rates", said Andrew Sentance, a former BoE rate-setter who is now an economic adviser with accountancy firm PwC. There is a speculation that the European Central Bank may raise its interest rates in May.

The lower inflation figures released today does not necessarily mean lower interest rates, said Annabel Bishop, a chief economist at Investec told Xinhua on Tuesday.

The country's inflation slowed down from 3% to 2.7%, which is the lowest level since July 2017. The data suggests that pressure on households as a result of accelerating inflation and wage stagnation may be over.

ONS figures due to be published on Wednesday are expected to show that pay growth edged up to an annual rate of 2.6 percent in the three months to January.

PolitiFact California: Trump Visits California
People were not able to see them up close, as access to the prototypes is restricted. "They're all taking refuge". I will continue to zealously fight to defend our state laws and protect the public safety of all Californians.

Month-on-month, consumer prices increased 0.8 percent in February, slightly slower than the expected 0.9 percent.

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

However, the index increased 3.9 percent from the previous year period.

Khalaf said that while falling inflation should go some way to alleviating the consumer squeeze, annual price rises are still high for essential items like electricity, food and transport.

"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".

In the contrary, Luigi Marinus, portfolio manager at PPS Investments said, "This relatively low level of inflation will put pressure on the Reserve Bank to cut interest rates in their next meeting". As the post-referendum currency effect fell out of the year on year comparisons, price rises were always likely to ease back.

Jacob Deppe, the head of trading at online trading platform Infinox, added: "While the Monetary Policy Committee (MPC) meets on Thursday it seems highly unlikely that it will agree to hike rates just yet".

Recommended:



Popular

Male pill could be on horizon as trials yield positive results
The drug blocks sperm production through a combination of an androgen - a male hormone such as testosterone - and a progestin. Dr Page said longer term studies are now underway to confirm that when taken every day, DMAU blocks sperm production .

Monday . 12:30 pm: Four Austin, Texas, bombings believed to be linked
Austin's police chief says the latest bombing to hit the city was detonated by a tripwire, "showing a different level of skill". This latest attack has even impacted area schoolchildren. "It's more sophisticated, it's not targeted towards individuals".

Katy Perry Takes Subtle Dig at Taylor Swift on American Idol
She denied it and added: "You do something, there's going to be a reaction, and trust me daddy, there's going to be a reaction". At that point, Swift began to project her image as being above the fray. "I love her, as a songwriter, as well".

Major Retailers Discuss How Trump's Anti-China Tariff Plan Could Hurt Americans
The US trade deficit with China ran to a record $375 billion past year - but US exports to the country were also at a record. Washington could impose more than $60 billion in tariffs on goods ranging from electronics to apparel, footwear and toys.

In NH, Trump calls for getting tough on drug dealers
Trump's victory in the Granite State's 2016 GOP primary set his campaign on a course to win the nomination. The stop in New Hampshire will be Trump's first as president.

Tottenham player ratings at Swansea: Eriksen and Lamela dominate
Spurs are playing at Wembley this season while its home at White Hart Lane is being redeveloped. Juventus wasn't great, but Wembley suits us and we've had a good season there.

IDF Soldiers Killed, 2 Injured In West Bank Car Ramming Attack
Two explosive devices were detonated Thursday along the border, which had already provoked Israeli attacks on Hamas positions. Israel withdrew its troops and settlers from Gaza in 2005 but maintains tight control over the enclave's land and sea border.

Courtois Dismisses Real Madrid Rumour, I'm Committed To Chelsea
Chelsea won the Premier League in Conte's first season in charge, but this has been an at times tumultuous campaign. "Obviously there is no extension signed but I don't think now is the moment to do it".

India again asks Pak to probe incidents of harassment of Indian officials
At the time of recall, Pakistan maintained that the envoy was called to Islamabad for "consultations". It is pretty normal an ambassador or a High Commissioner in any country to be called.

Canadian curling team edges South Korea 5-3 for emotional Paralympic bronze
Vernon's Curt Minard finished sixth in the first-ever Para snowboard banked slalom Paralympics event. South Korea previously beat Canada 7-5. "It was that close, and was definitely an exciting race".