Inflation, interest rates and the economy: euro inflation rises to 9. 1%

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Inflation in the eurozone has reached a record 9. 1% in the year to August 2022, as the cost-of-living crisis in Europe deepens, writes Andrew Michael.

The figure is up from 8. 9% last month, according to an estimate by Eurostat, the European Union’s statistics. As of November 2021, this is the ninth consecutive record of increases in customer value within the single currency bloc.

The latest figure, driven primarily by energy costs as well as increases in food, alcohol and tobacco, beats economists’ expectations. This news brings the region closer to double-digit inflation for the first time since the arrival of the euro in 1999. .

According to Eurostat figures, inflation levels vary significantly from country to country within the bloc. Topping the list are the Baltic states of Estonia, Lithuania and Latvia, which recorded annual inflation rates until August this year of 25. 2%, 21. 1% and 20. 8%. respectively.

France, on the other hand, recorded a figure of 6. 5%, followed by Malta (7. 1%) and Finland (7. 6%). The eurozone’s largest economy, Germany, recorded annual inflation of 8. 8% in August, its point in just about 50 years.

In the UK, annual inflation reached 10. 1% through July, according to the most recent figures from the Office for National Statistics.

Fiona Cincotta, from the city of Index, said: “The new record of record inflation supports the case for a giant rate hike through the European Central Bank at the September meeting.

“No matter how you look at it, the outlook for the region is pretty bleak, with few signs that peak inflation is passing. Instead, markets are preparing for inflation to continue to rise by double digits, as soon as next month. “

Food inflation in the UK accelerated considerably to 9. 3% in August 2022, from 7. 0% last month, according to figures from the British Retail Consortium (BRC).

The most recent figure is the rate in just 15 years and is well above the 3-month average BRC rate of 7. 2%.

The number of new foods 10. 5%.

Helen Dickinson, executive director of BRC, said: “The war in Ukraine and the consequent rise in the costs of animal feed, fertilisers, wheat and vegetable oils have continued to drive up food costs.

“Fresh produce inflation specifically has peaked since 2008, and products like milk, margarine and potato chips have noticed the biggest increases. “

Stock costs around the world fell after the chairman of the U. S. Federal Reserve( chairman of the U. S. Federal Reserve) fell. U. S. Secretary of State Jerome Powell said the central bank would continue to raise interest rates to the country’s highest inflation rate.

Speaking at the economic symposium held in Jackson Hole, Wyoming, Powell reiterated his commitment to fighting inflation, but warned that this course of action could cause “some pain” to the U. S. economy.

Powell said: “We are taking firm and swift action to moderate demand to be more in line with the source and to keep inflation expectations anchored. We will continue until we are convinced that everything is done. “

Last month, the Fed raised its benchmark interest rate through issues from 0. 75 percent to between 2. 25% and 2. 5%. Soon after, the U. S. The U. S. food and drug administration reported a decline in inflation, from a 40-year high of 9. 1% in June 2022 to 8. 5% in July. .

In the wake of Mr. Powell’s speech at Jackson Hole, the U. S. S. S. IndexUSA

Salman Ahmed, Global Head of Strategic and Macro Asset Allocation at Fidelity International, said: “Given the context of easing monetary situations since the beginning of July, as we expected, we have noticed a pullback through Fed Chairman Jerome Powell in assessing the market of a fast pivot, caution opposed to policy easing faster than later.

“While inflation has begun to show signs of reversal, some of the most resilient and persistent parts are rising. In addition, the labor market is tight.

Callie Cox, investment analyst at eToro, said: “It is significant that Powell’s tone has a competitive backing despite the symptoms of slowing inflation. Inflation may be slowing, but it’s still too high for the Fed’s taste and Powell is willing to do so. “it threatens further expansion and the ability of the hard labor market to bring it down.

According to Citigroup’s most recent forecast, inflation in the UK could hit a nearly 50-year high of 18. 6% early next year due to rising wholesale gas prices, writes Andrew Michael.

The investment bank says that with gas charges that emerged over a quarter last week, the living charge can succeed in degrees not seen since the 1970s. He says this would force the Bank of England to increase the rate of reduction to 7% – 4 times its current point of 1. 75%, if the demand for higher wages is generalised.

Wholesale herbal fuel prices in the UK and Europe are trading at almost 10 times overall levels, and other forecasters have also raised their inflation forecasts.

Last week, emerging energy costs were one of the main participants in customers’ annual costs in the UK, reaching a 40-year high of 10. 1% in the year to July 2022.

Citi predicts that the UK retail energy value cap, which limits the amount fuel and electric utilities can qualify for permanent energy and tariff pools, would rise to £4,567 in January and then to £5,816 in April.

The cap, set by energy regulator Ofgem, recently stood at £1,971 per year for a family with average consumption. more than £3,500.

Benjamin Nabarro, Citi’s lead economist, said: “We now expect CPI inflation to peak at more than 18% in January. Even with the economy slowing, last week’s data reaffirmed the continued threat that it will affect headline inflation in the domestic market. “salary and value setting can be accelerated.

If the prediction is correct, the figure would be higher than the peak of inflation reached in the United Kingdom after the oil crisis of 1979, when the customer value index reached 17. 8%.

Inflation in the UK hit a new 40-year high of 10. 1% in July 2022, according to the most recent figures from the Office for National Statistics (ONS), writes Andrew Michael.

The accumulation in the Consumer Price Index (CPI) is 9. 8% higher than economists’ forecasts and will put greater pressure on consumers and families already under control of a cost-of-living crisis.

The strong accumulation from 9. 4% in June provides us with the first double-digit CPI for the UK since February 1982.

The ONS said the July build-up was basically due to higher food costs, adding bakery, dairy, meats and vegetables. The accumulation of prices of other staple foods, adding puppy food, rolls of toilet paper, toothbrushes and deodorants, also contributed to the accumulation.

Grant Fitzner, lead economist at the ONS, said: “The price of raw fabrics and goods leaving factories has continued to rise, driven by the value of metals and food, respectively.

“Driven by higher demand, the value of holiday packages has increased, after falling in the same period last year, while airfares have also increased.

In recent months, the UK, as well as many countries around the world, have felt the brunt of inflation headwinds thanks to rising energy prices, shrinking the post-pandemic global supply chain, and the war in Ukraine.

Inflation in the UK is now more than five times the government’s 2% target for the Bank of England (BoE). The BoE recently forecast that inflation will peak at around 13% until the end of this year and continue at “high levels” until 2023.

To fight emerging prices, the BoE recently raised interest rates to 1. 75%, the sixth accumulation since the end of 2021. Today’s inflation announcement may lead to a rate hike when it considers its next move in September.

Yesterday, due to high levels of inflation, it emerged that real wage levels in the UK have fallen at the fastest rate in more than 20 years.

Rachel Winter, Partner at Killik

Rob Clarry, investment strategist at Evelyn Partners, said: “The build-up in July is basically due to higher food values. Given that adjustments to the value cap of energy regulator Ofgem in October are expected to bring the inflation rate to around 13%, times are tough for the UK. “households

“These points are largely out of reach of the Bank of England, which means financial policy is less effective at combating them directly. “

One positive thing that will play a role in the upcoming inflation rate announcement is the recent drop in fuel prices. Petrol now sells for around £1. 75 per litre, while in July it topped £1. 90 per litre in some cases.

The United States has recently noticed a decline in its inflation rate, partly attributed to declining costs at the pump.

Gross domestic product (GDP) figures released today through the Office for National Statistics (ONS) show that the UK economy increased by 0. 1% in the current quarter of the year, from April to June 2022.

There was significant relief of 0. 6% in June, attributed through the ONS to reduced economic activity due to Queen Elizabeth’s Platinum Jubilee celebrations: “It is vital to note that the May bank holiday resulted in one more day in May 2022 and two calendar days less in June 2022.

“Therefore, this will need to be taken into account when interpreting seasonally adjusted movements involving May and June 2022. “

The economy grew by 0. 4% in May after developing by 0. 8% in the first quarter of the year. But economists agree that the economy’s long-term trend is toward a recession, which is sometimes noticeable when the economy contracts for two consecutive quarters.

The ONS says the sector fell 0. 4% in the quarter, largely due to a “negative contribution” from human fitness and social painting activities. He says this reflects a relief in coronavirus (COVID-19) activities.

However, the benefits of easing coronavirus restrictions have seen an expansion in other areas, with agencies and tour operators performing well in room and board activities, and artistic, entertainment and recreational activities.

As for customer spending, the ONS reports that household spending fell in real terms (excluding the effect of inflation) to 0. 2% in the current quarter.

It indicates that we spend less on tourism, clothing and footwear, food and beverages, restaurants and hotels. This minimization is partially offset by an accumulation in spending on transportation, housing, and health.

Taking inflation into account, household spending even increased by 2. 6% in the quarter, reflecting recent inflationary pressures on household spending. In other words, we spend more to get less.

Last month, the ONS recorded inflation of 9. 4%. The Bank of England says the figure will be successful in deep double-digit territory in the coming months.

The onS inflation announcement will be made on August 17.

The economic contraction in the current quarter may influence the Bank when it meets in September to raise or not the Bank’s interest rate from its current rate of 1. 75%.

Jonathan Moyes, Head of Investment Research at the Wealth Club, said: “The existing inflationary increase is largely due to global food and energy prices, which in total are beyond the Bank’s control.

“Higher interest rates in the UK will do little to ease those pressures. By seeking inflationary pressures, such as higher wages, the Bank risks strangling the life of the economy without particularly alleviating the cost-of-living crisis.

“While the Bank expected a slight contraction in GDP in the current quarter, the developing weakness of the UK economy may prompt you to think before proceeding to raise rates. “

inflation in EE. UU. se slowed more than expected last month, a sign that the recent rise in value would likely have peaked, writes Andrew Michael.

The Nasdaq heavy technology index is up 2. 5% in the news.

Today’s figures from the U. S. Bureau of Labor StatisticsU. S. prices show that the consumer price index rose 8. 5% in the year to July 2022, up from 9. 1%, a 40-year high, a month earlier.

In a decline that beat forecasts, the Bureau said the weakest reading was due to declining fuel prices, with its energy index falling 4. 6% month-on-month through July.

Consumer costs in the UK rose by 9. 4% in the year to June 2022, and the Bank of England recently warned that the inflation rate could exceed 13% until the end of the year. The Office for National Statistics will publish the latest figures below. week.

The latest U. S. figures The U. S. treasury will ease investors’ considerations that the country’s central bank, the Federal Reserve, will continue its competitive policy of raising interest rates at its next policy meeting in September.

Last month, the Fed raised its benchmark interest rate by 0. 75 percentage points, in a range of 2. 25% to 2. 5%, the time for rate hikes of that magnitude in consecutive months.

Rob Clarry, investment strategist at wealth manager Evelyn Partners, said: “The key markets they have been addressing over the past month is whether the Fed will deviate from its existing adjustment plans. Falling commodity prices, deteriorating customer confidence and slower expansion may trigger the Fed to lift its foot in long-term meetings.

The UK is on the brink of recession, warned the Bank of England, which raised interest rates through issues of 0. 5 percent yesterday. The accumulation of the rate from 1. 25% to 1. 75% marked the largest accumulation in 27 years.

The Bank also expects the economy to begin to contract in the last quarter of the year, between October and December, and continue to contract until the end of 2023.

This would mark the most internal recession since the 2008 “credit crisis. “

A recession is universally explained through two consecutive quarters of negative GDP or gross domestic product expansion, a measure of a country’s economic output. production decreases.

The bank also revised its inflation forecast to more than 13% by the end of the year, from the current 9. 4%, as even higher energy prices hit households from October, when the regulator’s new value cap comes into effect.

The increase in energy expenditures is largely due to the Russian invasion of Ukraine, which is also affecting peak gas and diesel costs as well as food prices.

After an additional round of interest rate increases, the sixth in seven months, the mortgage rate will also rise further. Two million homeowners will be affected and millions more will be kept when they re-mortgage or buy their first home.

However, the bank said the rate hikes should involve rising inflation and “do its job” by bringing it back to its 2% target.

He explained: “The main form of inflation is to raise interest rates. Higher interest rates make it more expensive for other people to borrow money and inspire them to save. “

“This means that, in general, they will have a tendency to spend less. If, in general, other people spend less on goods and services, costs will tend to rise more slowly. This reduces the inflation rate.

The news of an approaching recession will be a blow to many families already suffering with increasing pressures on the burden of life.

Laith Khalaf, head of investment analysis at AJ Bell, commented: “Winter is approaching and promises to be a show of absolute terror for the UK economy. Make no mistake, 0. 5% is a historic level in interest rates, but it is overshadowed by the catastrophic economic forecasts drawn up through the Bank of England.

He added: “Inflation is now expected to reach 13% by the end of this year, while the UK is also expected to enter recession, just in time for Christmas. “

However, Fraser Harker, an investment analyst at 7IM, suggested to others that they “look beyond the headlines. “He said, “The word recession means other things to other people. It is perfectly conceivable that by the end of the year, the UK will have recorded two consecutive quarters of falling GDP.

“However, this doesn’t necessarily have to be accompanied by what most people associate with a recession, such as a widespread rise in unemployment and a significant drop in space prices. “

The Bank of England (BoE) raised its rate of reduction from 1. 25% to 1. 75%, the highest point in 14 years, in a widely expected move to curb rising inflation in the UK, writes Andrew Michael.

The most recent knowledge showed that inflation in the UK, as measured through the Consumer Price Index, had reached a 40-year high of 9. 4% in the year to June 2022.

But, in explaining its resolution on today’s rate hike, the BoE warned that a recent rise in gas costs meant inflation could now exceed 13% by the end of the year, far more than its May forecast.

The BoE also predicted that inflation may remain at “very high levels” next year.

The 50 basis point increase, announced through the BoE’s Monetary Policy Committee (MPC), is the first increase of this magnitude in 27 years and the first since the committee’s creation 25 years ago.

MPC members voted overwhelmingly for the accumulation of half a percentage point with 8 votes in favor and one against.

The reduction rate increase, the sixth announced by the BoE since December 2021, will have an almost immediate monetary effect on around two million UK families with variable-rate mortgages, adding follow-up agreements.

For example, borrowers with a £200,000 loan lately at a variable rate of 3. 5% can expect to see their monthly bill add up to around £60 extra.

The BoE’s announcement follows last week’s resolution through the Federal Reserve, the U. S. central bank. In the U. S. , to increase its benchmark interest rate through issues from 0. 75 percent to one from 2. 25% to 2. 5%.

Inflation in the United States has recently stood at 9. 1%. The BoE and fed have inflation targets of 2%.

Alice Haine, non-public finance analyst at investment service Bestinvest, said: “While it is up to a central bank to raise rates when the economy is at risk of falling into recession, the country is in the midst of a cost of- living crisis.

Haine added: “The latest interest rate increase will also consume the government’s subsidy package for suffering families. Up to 8 million vulnerable families are expected to get £1200 in government aid this year to help them cope with the huge monetary blow caused by the cost-of-living crisis, adding up to the £326 payment issued last month.

Les Camerons, financial expert at M

The BoE’s next rate-setting assembly will be announced on September 15, 2022.

The U. S. Federal Reserve The U. S. raised its benchmark interest rate through issues from 0. 75 percent to between 2. 25% and 2. 5%.

It implemented a size increase in June from a 1% base (see story below).

Economists note the magnitude and speed of the increases as an indication of the U. S. central bank’s growing sense of urgency. The U. S. economy has been battling 9. 1 percent inflation since the early 1980s.

Top 3 U. S. Inventory Indices The U. S. reacted definitively to the movement. The Dow Jones Industrial Average rose more than 530 numbers to 32,291 while the S

In the UK, the Bank’s main interest rate stands at 1. 25% (up to 1% in June), while inflation soars to 9. 4%. The Bank of England is expected to raise the rate of reduction to 1. 75% the next time it was announced on August 4.

The European Central Bank (ECB) announced an interest rate hike for the first time in more than a decade to a greater extent than expected to combat inflation in the euro area. The cumulation will take effect from July 27.

The ECB’s GOVERNING COUNCIL said the base rate in the 19-member currency bloc would go from 0. 5%, from minus 0. 5% to zero. The 50 basis point increase, double the amount discussed last month, is the largest imposed by the central bank. since 2000.

He also hinted at further increases in interest rates at long-term meetings, but gave no indication of the magnitude of those increases.

Today’s resolution further aligns the eurozone’s financial policy with that of the Bank of England and the US Federal Reserve. In the U. S. , they have raised interest rates several times this year.

A rate set at 0 means that neither borrowers nor establishments take advantage of cash on deposit.

Critics have accused the ECB of falling asleep at the wheel after inflation soared to 8. 6% in the eurozone, more than 4 times the central bank’s 2% target.

The latest rise in inflation was largely due to the economic effect of the war in Ukraine, along with rising energy prices.

Today’s announcement via the ECB follows the earlier resignation of Italian Prime Minister Mario Draghi, ending a national unity government that was created to take on unpopular reforms in the country.

Garry White, lead investment commentator at wealth manager Charles Stanley, said: “The ECB hawks look difficult at the moment, but they would possibly have to tweak their rhetoric and recommendations to deal with the realities of weak public finances in the periphery, and the fact is that they are already slowing down.

“To be more sensible, the ECB will now also be involved in the political upheavals in Italy. For voting members of the ECB, inflation is their only concern, unlike other Western central banks.

Inflation in the UK hit a 40-year high of 9. 4% in June 2022, according to the most recent figures from the Office for National Statistics (ONS).

The accumulation was higher than the 9. 3% forecast by economists. In monthly terms, the consumer price index (CPI) increased by 0. 8% in June 2022, compared to a cumulative 0. 5% in June 2021.

The news will put further pressure on household finances already at the breaking point as consumers face the worst cost-of-living crisis in years.

The ONS said emerging fuel and food costs were the main contributors to the latest CPI figure, outpacing downward forces in the used car and AV appliance market.

Grant Fitzner, Chief Economist at the ONS, said: “Annual inflation has risen again at its pace of more than 40 years. This accumulation is due to higher fuel and food prices.

“The price of uncooked fabrics and products leaving factories has continued to rise, driven by steel and emerging foods, respectively. “

In recent months, the UK, along with many countries around the world, have felt the brunt of inflation headwinds thanks to rising energy prices, the shrinking global supply chain following the pandemic, and the ongoing war in Ukraine.

Inflation in the UK is now soaring to almost five times the 2% target set by the Bank of England (BoE) through the government. The BoE forecasts that inflation will peak at around 11% later this year before stocks start falling in 2023.

Speaking at the annual dinner at Mansion House in the city of London, Andrew Bailey, the BoE governor, raised the option of raising interest rates by a part of a percentage point in early August while tightening the central bank’s language on fighting emerging prices. .

The BoE has already raised the rate five times, to its current point of 1. 25%, since December 2021. A half-percentage-point accumulation would be the largest accumulation in the rate since 1995.

Richard Carter, head of constant rate studies at Quilter Cheviot, said: “Another month and a further rise in inflation as the relentless pressure on customers continues. This time, the value index of UK customers stood at 9. 4%, more than expected, The values of power and gasoline take effect.

“The Bank of England will feel the warmth of the last few days and has a very complicated task to do to achieve a comfortable landing of the economy. Recession fears are developing throughout the day and if more excessive interest rate increases are needed, it may simply gently tilt the economy toward contraction.

Matt Roche, Associate Chief Investment Officer, Killik

“While it’s wise to maintain a reserve of money for emergencies and plan giant expenses well in advance, the budget glut can be used to work harder. For example, an individual, unbiased savings account can provide fair long-term tax benefits. “With inventory costs falling in 2022, global inventory markets now look much hotter for lifetime savers. “

inflation in EE. UU. se has accelerated to a new 40-year high through June 2022, according to the most recent figures from the U. S. Bureau of Labor Statistics. (BLS), writes Andrew Michael.

In a jump that even surpassed peak competitive forecasts, the BLS reported on Wednesday (July 13) that customer costs reached 9. 1% last month, putting the annual inflation rate at its peak since November 1981. Inflation in the UK is also 9. 1%.

The BLS said it had increased the maximum of goods and services, forcing Americans to dig deeper to pay for fuel, food, physical care and rent.

Strong inflationary headwinds are now a normal feature of the economic environment.

Consumer costs are suffering the effects of rising energy costs and shock in Ukraine, as well as a global chain challenge as the world emerges from the Covid-19 pandemic.

The latest inflation figure from the bls put the Federal Reserve, the US central bank, in the doldrums, and the U. S. In the U. S. , it will strive to abandon its financial policy direction for a month in a row and raise interest rates by one percentage point by the end of this month.

In June, the Fed raised its interest rate cap from 1% to 1. 75%. The last time it imposed an increase of 0. 75% was in 1994.

The Federal Reserve, like central banks around the world, such as the Bank of England in the UK, has an inflation target of 2%.

Richard Carter, head of constant rate studies at Quilter Cheviot, said: “Consumer costs in the US are not at all. The U. S. has surpassed 9%, reaching 9. 1% in the year to June. Now we will have to ask ourselves how close we are to the top. “

“A 0. 75% increase in the Federal Reserve at its next assembly is an absolute certainty and possibly even pressure from some sectors to do more. Central banks are obviously suffering from inflation and if this number continues to rise or stays around this level, it will take more to bring it down, whatever the economic consequences it may have.

In a wonderful move, the Bank of Canada raised its key interest rate on Wednesday, July 13, through a steady percentage point to 2. 5 cents consistent in a bid to avoid inflation that lawmakers said would most likely take root.

Millions of payment packages will receive a boost from Wednesday 6 July when the threshold at which National Insurance Contributions (NICs) rise from £9,880 to £12,570, writes Andrew Michael.

The update announced in the Spring Declaration in March.

NICs increased as planned at the start of this fiscal year on April 6 to fund the government’s reaction to Covid, but the planned resolution sparked complaints in the early months of this year, with critics calling it a new burden on families facing emerging costs. Crisis of the living.

This led MP Rishi Sunak, Minister of Finance at the time, to design the next building on the threshold.

NICs, a tax on the source of profit and gain of the self-employed, are the UK government’s largest source of tax gains at the time after the source of profit tax. Paying NIC is vital because it gives Americans the right to get social security. benefits, adding the state pension.

The July 6 update means other people ranked through HM Revenue

Interactive Investor(ii), the investment platform, estimates that raising the NI threshold will benefit 30 million more people, saving a typical employee around £330 a year. This resolution also means that around 2. 2 million people will be completely exempt from paying NI.

However, he noted that the tax carry-over effect means THAT UK taxpayers would have to pay up to £16,000 more in taxes on their source of income until the end of 2026, when a number of tax exemptions and thresholds will be removed. .

Fiscal restraint occurs when inflation or the expansion of the source of income pushes taxpayers into a higher rate tax bracket.

Last year, the Chancellor froze tax thresholds on the fundamental source of income and the highest rates from 2022 to 2026. At a time when average wages are emerging, this resolution will result in an increasing number of other people in the higher-rate tax bracket.

According to ii, until 2026, a base rate taxpayer earning £30,000 will see their net salary reduced by £1,816 in real terms due to private tax relief and the NI threshold that keeps pace with inflation.

The company added that higher-rate taxpayers would have an even greater impact on their source of income. He calculated that a user earning £50,000 will have £4,271 less in their pocket in real terms until 2026, while a main source of income income with an income stream of £150,000 will pay an additional £15,596 in taxes.

Ii’s calculation took into account the recent accumulation of 1. 25 percentage points in the NI imposed through the Treasury on the NHS, as well as the accumulation in the initial NI threshold.

Alice Guy, finance expert at ii, said: “The chancellor is conducting a secret £3,631 tax search for millions of suffering families. existing cost-of-living crisis.

Inflation in the UK rose to 9. 1% in the year to May 2022, its point since 1982, according to the most recent figures from the Office for National Statistics (ONS).

The news will increase pressure on family finances, which are already strained, as consumers face the worst cost-of-living crisis in years.

On a monthly basis, the consumer price index (CPI) increased by 0. 7% in May this year, compared to 0. 6% in May 2021.

The ONS said emerging food and non-alcoholic beverage costs, compared to a year ago’s decline, are the main contributors to the increase in the most recent CPI figure.

In recent months, the UK, along with many countries around the world, have felt the brunt of inflation headwinds thanks to rising energy prices, a global bottleneck in the post-pandemic supply chain, and the ongoing conflict in Ukraine.

Inflation in the UK is now almost five times the 2% target set by the Bank of England (BoE) through the government. Last week, the BoE raised the rate to 1. 25% in its latest bid to combat inflation.

Meanwhile, the UK central bank has warned that inflation could reach 11% by the end of this year. Energy prices are expected to soar in October, in line with the expected increase in the energy value limit, announced through Ofgem, the energy regulator.

Grant Fitzner, lead economist at the ONS, said: “The price of products leaving factories has not reached its highest speed in forty-five years, due to the generalisation of food prices, while the price of raw fabrics has risen at its fastest speed on record. “. “

Alice Haine, private finance analyst at Bestinvest, said: “People’s buying power is now seriously hampered and families want to make a serious financial balance if they want to continue with the popular life they have become accustomed to. “

Haine added: “With costs getting higher and higher, cutting budgets now to cut expenses is important for those who need to get through the year with their bank balance still in the dark, as runaway inflation means their salary just doesn’t rise that much. “. “

Paul Craig, portfolio manager at Quilter Investors, said: “While the rate of inflation expansion would possibly have slowed, we have many caveats that this is not the peak. Unfortunately, the cost-of-living crisis is possibly not a short-lived affair, and one that will ultimately leave the BoE caught between a rock and a hard place.

“While the U. S. While the U. S. has identified the desire for interest rates to move quickly, the BoE continues to move at a slower pace, looking to push the economy into recession at a time when businesses and consumers are feeling the effects. “

“However, its existing strategy does little to prevent inflation from soaring and therefore more difficult decisions will be made very soon, and the Bank already hints at a larger increase at its next meeting. “

The Bank of England (BoE) raised its key interest rate from 1% to 1. 25%, in a bid to stave off runaway inflation in the UK.

The most recent data showed that customer costs increased by 9% in the year to April 2022, the point in the G7 organization of the world’s leading economies.

Today’s 0. 25 percentage point increase was widely forecast by the city’s meteorologists. The last time the rate of reduction exceeded 1% was in 2009, when Prime Minister Gordon Brown and the global economy emerged from the global currency crisis.

The buildup is the BoE’s fifth rate hike since December last year and follows yesterday’s resolution by the US Federal Reserve. UU. de to increase its interest rate limit through 75 core issues to 1. 75% (see article below).

According to the BoE, its rate-setting policy committee voted six-3 in favor of a rate increase.

Today’s announcement is the latest in a series of attempts through central banks around the world to fight inflationary winds felt in many countries. EE. UU. la inflation stands at 8. 6%. Both the BoE and the Fed have inflation targets of 2%.

An accumulation in the rate of reduction in the UK can be costly for families, who are already recovering from the burden of tight living, who have variable-rate or variable-rate mortgages. This is because lenders tend to accumulate required repayments on mortgage loans to reflect higher loan fees.

Conversely, UK savers will benefit from raising rates if they have deposited cash into variable-rate payment accounts, assuming providers pass on some or all of the rate hike to customers.

The announcement of the new reduction rate is on August 4, with some other increase of the same magnitude, although a rise of 50 basis points to 1. 75% is not ruled out.

The U. S. Federal Reserve The U. S. raised its interest rate cap from 1% to 1. 75% in a bid to combat the country’s highest inflation rate in 40 years.

The 0. 75-point rise in the Fed’s key interest rate had been widely expected by commentators in recent days. The Fed last imposed a rate hike of this magnitude in 1994.

Inflation in EE. UU. se has recently stood at 8. 6%. Today’s rate hike is a sign from the Fed of a competitive stance toward financial tightening in an effort to fight skyrocketing prices for customers.

The most recent buildup follows a half-percentage-point buildup in interest rates announced last month.

The Fed said: “Inflation remains high, reflecting sources and demands of pandemic-like imbalances, emerging energy values, and broader price pressures. “

“Russia’s invasion of Ukraine is causing enormous human and economic difficulties. The invasion and similar occasions are creating further upward pressure on inflation and affecting economic activity.

Today’s announcement through the Fed is the latest in a series of the world’s central banks to combat the inflationary winds that are being felt in many countries.

Global inflationary pressures are exacerbated through factors, which add to rising energy prices, bottlenecks in the post-pandemic global supply chain, and the war in Ukraine.

The Fed and the Bank of England (BoE), the UK’s central bank, have inflation targets of 2%. The inflation rate in the UK is lately 9%.

Tomorrow (Thursday), the BoE is expected to announce a 0. 25 percentage point increase in the UK rate. Lately, the rate is at 1% after 4 rate increases since last December.

If the BoE’s financial policy committee makes a resolution to raise rates, this resolution will prove costly for families with variable-rate mortgages and trackers, as lenders tend to accumulate repayments to reflect their own higher borrowing costs.

Savers, on the other hand, would take advantage of any additional accumulation if they deposited cash into variable-rate accounts, assuming their provider decides to transfer any accruals to their customers.

In the UK, high inflation is partly to blame for a cost-of-living crisis that has reduced the household incomes of the poorest following a series of tax increases that took effect in April 2022. Laith Khalaf, head of online investment research AJ Bell, a stockbroker, said: “The global economy may simply slow down, but central banks in the evolving world face an existential question of credibility. If they do not act in the face of runaway inflation, they undermine their own raison d’être. “, however, by aggressively raising rates, they put pressure on economic activity.

More than three-quarters of British adults feel “very” or “somewhat” worried about the emerging burden of living, according to the effects of a May survey by the Bank of England and Ipsos that explores attitudes toward inflation.

The teams most likely to feel “very or worried” are women, other people over the age of 30 to 49, other people with disabilities, and other people living with a dependent child ages 0 to 4.

While the degrees of concern exceeded the source of income, those earning less than £10,000 a year accounted for the highest proportion of being “very worried” (31%), compared to just 12% of those whose annual salary was £50,000. Or more.

According to the survey, part of the total number of adults (50%) who said they were “very concerned” about the incipient burden of idea of living about it on a basis.

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “It’s hard enough to cover our costs right now, but what makes things worse is that costs will continue to go up from now on. Inflation is expected to remain high for the rest of the year and peak at the end of 2022. This means that even those who are overcoming now could begin to suffer later.

The report matched U. S. inflation figures. The U. S. Department of Homeland Security found that customer costs had risen to 8. 6% in May of the year, according to the U. S. Bureau of Labor Statistics. U. S. (BLS), marking a new high in 40 years.

The UK Consumer Price Index (CPI) inflation measure has lately stood at 9% for the year to April, with May figures to be announced on 22 June.

Separate figures released today by the Office for National Statistics show that the UK economy, measured through its GDP (gross domestic product), fell by 0. 3% in April, due to declines in the services, production and structure sectors. This consecutive month of contraction in the economy, following a 0. 1% drop in March, fueled fears of a recession.

The relentless rise in the living rate is putting more pressure on the Bank of England to raise interest rates when the next resolution is announced on Thursday (June 16), which has an additional impact on the mortgage rate.

U. S. inflation The U. S. Trade Bureau hit a new 40-year high in the year to May 2022, according to the most recent figures from the U. S. Bureau of Labor Statistics. USA (BLS).

The BLS said customer costs rose to 8. 6% last month, up 0. 3% from the 8. 3% reported in the year to April 2022, putting them at their highest point since December 1981. He said the main participants in the most recent inflation figure included “housing” (housing), food and fuel.

Strong inflationary headwinds have a pillar of the global economic environment over the past nine months. Consumer costs are not only feeling the effects of rising energy costs and the ongoing conflict in Ukraine, but they are also suffering a challenge in the global supply chain as the world emerges. of the effects of the Covid-19 pandemic.

The U. S. figure, which beat market expectations by 8. 3 percent, will make it harder for the U. S. Federal Reserve to keep up with the U. S. Federal Reserve. UU. se meet next week for its next resolution on interest rates. The Fed, like other central banks around the world, such as the Bank of England in the UK, has an inflation target of 2%.

In May, the Fed raised its key interest rate by part from one percentage point to 1%, its first buildup of 50 basis points in more than 20 years. Today’s inflation figure may lead to a rate increase of similar magnitude next week.

The Fed has already pledged to “quickly” impose an economic policy on a more “neutral” point that no longer stimulates the economy. But additional evidence that inflation is taking root may force the government to raise rates even more vigorously than economic markets expect.

Dan Boardman-Weston, chief executive of BRI Wealth Management, said: “The Fed has a difficult task ahead of it as it observes inflation expectations not taking root, but will most likely continue to tighten policy in a slowing economy. “Soft” touchdown they expect still looks like a big demand.

The European Central Bank (ECB) said it would raise interest rates this summer, the first of its kind in 11 years, after warning that inflation would be higher than expected.

The ECB’s Governing Council announced that the base rate of the 19-member currency bloc would rise to 0. 25% in July, with the option of an additional, and larger, increase already scheduled for September.

July’s accumulation will raise the deposit rate of major commercial banks from its current point of -0. 5%. A negative interest rate means that borrowers pay institutions for the privilege of having their money on deposit.

Critics have accused the ECB of falling asleep at the wheel after inflation soared to 8. 1% in the eurozone, more than 4 times the central bank’s 2% target.

The latest rise in inflation was largely due to moderation in energy prices, along with the economic effect of the war in Ukraine.

The ECB’s announcement will further align eurozone policy with that of the Bank of England and the US Federal Reserve, which have raised interest rates several times this year.

Christine Lagarde, President of the ECB, said: “It is a practice to start with slow construction other than . . . excessive.

Lagarde added that there is a risk that food and energy price inflation will remain the highest for a while, and that trade capacity will be permanently affected, which could also damage eurozone economies for an extended period.

Assuming the ECB’s rate hike continues, the central banks of Japan and Switzerland would be the last two major global financial governments to maintain negative rates.

Hinesh Patel, Portfolio Manager at Quilter Investors, said: “The ECB has already been well on the curve when it comes to tightening policy, and to some extent it still stands firm, even if, despite everything, it turns out to be coming to an end.

“For now, the balancing act facing the ECB remains delicate. The bloc faces an inflationary surprise that demands swift and decisive action, yet Russia’s ongoing attack on Ukraine continues to cast a shadow of uncertainty over Europe that could end in a weak call. for and recession.

Through the Office for National Statistics (ONS) it found that the average value of a basket of cheap food products has increased at a slower rate than the official Consumer Price Index (CPI), but very much in line with more general new foods and beverages. .

The ONS found that the rate of economic groceries increased by between 6% and 7% in the year to April. This compares with an inflation rate of 6. 7% for the more general “food and non-alcoholic beverages” that were recorded during the same period. .

Although either measure is below the overall annual inflation rate (9% through April), they revealed huge differences in value between other low-budget food products.

For example, the price of pasta has risen by 50% since April 2021, while the average price of potatoes has decreased by 14%. chips are down as much as 7%.

The ONS also took into account “shrinkflation”, the procedure of reducing the length of products while maintaining their previous price.

The ONS compiled the costs of 30 comfortable foods and drinks, adding pasta, potatoes, vegetable oil, poultry squash and fruits, comparing costs between seven UK supermarket websites to involve the cheapest edition of each product.

This experimental study aims to identify how customers’ cheaper goods are affected by inflation in the UK, as the official customer value index is influenced by more expensive purchases, such as clothing and footwear, entertainment and restaurants.

Fears of a global wheat shortage are likely to lead to further increases in the value of commodities such as pasta and bread.

Russia’s invasion of Ukraine, which produced a quarter of the world’s pre-conflict wheat exports, disrupted Black Sea export routes.

Inflation in the UK soared to 9% in April 2022 from 7% last month, pushing the figure to its highest point in 40 years as customer costs were hit by rising energy costs and the impact of the ongoing conflict. in Ukraine.

The latest increase, announced through the Office for National Statistics (ONS), will exacerbate the cost-of-living crisis faced by millions of British families as costs reduce the strength of people’s incomes.

Today’s rise in inflation comes as many employees see a sharp drop in their wages in real terms. Average wages, bonuses, rose 4. 2% in the three months to March 2022, according to onS data, an accumulation that has been largely absorbed by the growing burden of living.

Recent figures from the National Institute of Economic and Social Research (NIESR) foresee a worsening of the scenario with a decrease in the genuine available source of income of 2. 4% this year. This would cause another 250,000 families to fall into poverty through 2023, bringing the total number of UK families falling into the excessive poverty category to 1 million.

The “impeachment” is explained as the fact that a circle of relatives of 4 have £140 per week or less to live on after the housing charge.

The NIESR also warned that emerging costs and emerging taxes are reducing the economic divide of household budgets. It estimates that another 1. 5 million families across the UK face food and energy expenditures above their disposable income.

The latest increase in inflation is due to rising energy and fuel prices, along with the economic effect of the war in Ukraine.

These are points beyond the Bank of England (BoE), which sets interest rates, meaning that hurried consumers do not yet have the option to reduce spending in order to live within their means.

Alice Haine, financial analyst at Bestinvest, said: “It is imperative to take constructive steps to cut spending now, as the outlook darkens from here.

“Cutting family budgets is the strategy, but it can only happen if other people have already taken away all the luxuries, such as going out to dinner, going on vacation and buying clothes.

“Once families struggle to pay for essentials, such as mortgages or rent, food and family bills, they risk going into debt for overdrafts and credit cards they can’t afford. “

The effect of inflation on your finances depends on your individual spending habits. Your private monetary scenario could be more or less affected than the overall rate of 9%.

In fact, the ONS – which records customer value data – calculates its figures from a virtual basket of 700 pieces made up of everyday pieces such as milk and bread, to larger pieces such as the price of air or the value of a new car.

Savers with money in deposit accounts deserve to rest easy through the BoE’s recent circular of four interest rate increases in the past six months. The most recent quarter-point increase brought the rate of reduction to 1%, its highest point since 2009.

Along with those moves, savings rates have risen with easily accessible accounts now paying 1% or more and the most productive fixed-rate products hovering around or above the 2% mark.

Historically, however, banks and structure firms have been incredibly slow to convey to savers the news of a rate hike. Moreover, even with emerging interest rates, their effect is overshadowed by the last peak of inflation, which translates into a negative. Genuine rate of return of savings.

The recommendation for savers in this scenario is to look for rates to make sure their cash is working as well as possible.

Sarah Coles of Hargreaves Lansdown said: “For the 4 out of five savers who have let them languish in easily accessible accounts with primary banks, paying 0. 1% or less, now is the time to move.

“The big giants of the street have passed an insulting fraction of the rate increase to savers, so there is no point in waiting in case they suddenly do the decent thing. “

Coles adds that if you have savings you wouldn’t need for five years or more, it’s worth considering whether the extra money may be harder for you in investments: -10 years or more, they have a much higher chance of beating inflation than saving cash. “

Unlike the US, which recently noticed a slight reversal in its inflation rate (see article below), inflation in the UK continues for the time being, stoking new fears about cost-of-living issues until 2022 and next year.

The Bank of England has warned that inflation could peak at 10% later this year when the energy value limit is raised in October.

Richard Carter, head of constant interest rate at Quilter Cheviot, said: “This will increase the pressure on the BoE to raise interest rates and cope with sky-high costs even if, as they themselves admit, many of the points driving inflation are beyond that. “. your control.

“We will be surprised to see how the new pressure on the government intensifies to soon pull some fiscal levers and seek to ease family pain this fall. “

Another option would be for the government to impose a one-time tax on oil and fuel companies, which have noticed an increase in their profits thanks to rising fuel costs over the past year.

Earlier this week, Rishi Sunak, the Chancellor of the Exchequer, stepped up warnings to the oil and fuel industry that unless corporations soon announce plans for further investment for the UK, they may face a possible tax on their profits.

Debbie Kennedy, of the life-seeking corridor, says most Britons are worried about their finances: “Our studies found that seven in 10 Britons (72%) expect to be economically worse this year as inflation soars, forecasting £3,020 consistent with year-consistent outlay on average.

“Overall, only 8% of respondents said they did not believe their monetary scenario was worse because of inflation.

“The emerging burden of living also has a negative effect on our intellectual aptitude. Three-quarters (74%) of adults say their intellectual fitness has been negatively affected in the past two years and of these, the “emerging burden of living” (28%), largely followed by “Covid restrictions” (27%), were the main causes.

U. S. inflation While the U. S. showed a slight slowdown in April, costs continued to rise near a 40-year high, according to the most recent figures from the U. S. Bureau of Labor Statistics. USA (BLS).

The BLS said customer costs fell to 8. 3% in April, still stubbornly up but down from 8. 5% last month. Economists had forecast a further reduction in the inflation rate to 8. 1%.

The knowledge showed that costs rose 0. 3% in April, slower than the 1. 2% recorded in March. The BLS indicates that the main participants in the most recent inflation figure are housing, food, airfares and new vehicles.

Commentators recommend that the latest inflation figure will keep the pressure on the US Federal Reserve. The U. S. Government, the country’s central bank, to pursue a program of raising interest rates to a part of one percentage point by 2022.

The Fed recently raised its interest rate cap from 0. 5% to 1% and did not rule out measures for the rest of the year.

In recent weeks, other central banks, besides the Bank of England, the Reserve Bank of India and the Reserve Bank of Australia, have raised interest rates in a bid to combat inflationary winds in many countries around the world.

The fall in the US CPI The U. S. may be well received by markets, as investors begin to expect that the inflation peak has already passed.

However, the figures were even worse than expected and commentators are too early to celebrate, as inflation will remain high for some time, exacerbated by the ongoing crisis in the energy market and the ongoing conflict in Ukraine.

Richard Carter, head of constant interest rate studies at Quilter Cheviot, said: “The pressure on the Fed remains very strong to raise interest rates and inflation. However, now the focus is starting to be on a sharp slowdown that is expected for the economy, and markets are increasingly worried about it.

Dan Boardman-Weston, chief executive of BRI Wealth Management, said: “The Fed has a delicate task ahead of it in trying to keep inflation expectations from taking root. Most likely, they will continue to tighten policy in a slowing economy. “soft” which he hopes may not be so soft.

The next announcement on UK inflation rates will be made via the Office for National Statistics on May 18.

The Bank of England (BoE) raised its bank interest rate from 0. 75% to 1%, in a bid to counter the rising inflation rate in the UK.

Inflation in the UK is 7% and the city’s meteorologists have widely forecast the fundamental point of 25. UK interest rates were last at 1% in early 2009.

The move, the BoE’s fourth rate hike since December last year, follows yesterday’s resolution through the US Federal Reserve. The U. S. government raises its interest rate cap across 50 fundamental issues at 1 percent.

Today’s announcement via the BoE is the latest in a series of attempts through central banks around the world to combat inflationary obstacles felt in many countries. inflation stands at 8. 5%. Both the BoE and the Fed have inflation targets of 2%.

Earlier this week, the Reserve Bank of India and the Reserve Bank of Australia announced interest rate hikes. The first in a decade in the case of the last.

An accumulation in the reduction rate in the UK can be costly for variable-rate families or variable-rate mortgages. This is because lenders tend to accumulate the required repayments on mortgage loans to reflect higher borrowing costs.

Conversely, UK savers will benefit from raising rates if they have deposited cash into variable-rate payment accounts, assuming providers pass on some or all of the rate hike to customers.

Laura Suter, head of personal finance at AJ Bell, said: “Today’s resolution through BoE rate-setting officials is causing even more pain to families suffering from the cost-of-living crisis. The global nature of inflation drivers means that this It is very unlikely that the accumulation of 1% will exceed inflation in hasty retirement, however, what it will do is accumulate more distress in other people who already have to rely on debt just to pay their bills. . .

The next announcement of the rate will take place on June 16.

The U. S. Federal Reserve The U. S. U. S. raised the interest rate cap from 0. 5% to 1% in a bid to counter the country’s highest inflation rate in 40 years.

Inflation in the U. S. The U. S. rate recently stood at 8. 5 percent, and the Fed’s 50 basis point increase, the biggest change in its policy rate since 2000, was widely expected by commentators. The increase follows a quarter-point increase in interest rates announced by the Fed. in March.

As part of its two-day political assembly that ended today, the Federal Open Market Committee voted to raise the federal budget rate target between 0. 75% and 1%.

In a statement, the Fed said it expected “continued increases in target diversity to be appropriate,” paving the way for imaginable increases of half a percentage point later this year.

Richard Carter, head of constant interest rate studies at Quilter Cheviot, said: “This 50 basis point increase through the Federal Reserve will likely be followed by several others, judging by the tone and the fact that the US economy continues to pull all cylinders.

“Inflation is soaring to more than 8%, while the latest employment report showed that there are almost two jobs for every unemployed person. These pressures aren’t going away anytime soon, so the Fed feels the need to act harshly and quickly.

Today’s announcement through the Federal Reserve is the latest in a series of attempts through central banks around the world to fight inflationary hurdles in many countries.

Earlier that day, the Reserve Bank of India announced a 40 basis point increase in its benchmark interest rate to 4. 4%. On Tuesday of this week, the Reserve Bank of Australia surprised economists by raising its official rate through 25 core issues to 0. 35%. . The upward movement is the first of its kind in the country in a decade.

Global inflationary pressures are exacerbated by the war in Ukraine. Inflation has also been boosted through points such as rising energy prices, as well as the awakening of dormant global economies after the pandemic.

The Federal Reserve and the Bank of England, the UK’s central bank, have inflation targets of 2%. The inflation rate in the UK lately is 7%.

Tomorrow (Thursday), the Bank is expected to announce an increase in the UK rate. Lately it stands at 0. 75% after having been the subject of 3 rate increases since last December.

If confirmed, an increase in the UK bank rate can prove costly for families with variable-rate mortgages and trackers, as lenders tend to rack up repayments to reflect higher borrowing costs.

Savers, on the other hand, would benefit from an accumulation if they have cash deposited in variable-rate payment accounts where a provider has to pass on any rate accruals to their customers, in whole or in part.

In the UK, high inflation is partly to blame for the cost-of-living crisis that has weighed on the incomes of poorer families following a series of tax increases that took effect in April.

The number of cars produced in the UK in the first quarter of 2022 fell to 99,211 year-over-year, from 306,558 to 207,347, a drop of almost a third. The 2021 figure was already relatively low due to the effect of the pandemic and related lockdowns.

The Society of Engine Manufacturers

Production in March fell more than a third, -33. 4 year-on-year, with 76,900 sets manufactured compared to 115,498 in the same month last year. This drop led to the weakest March since the 2009 currency crisis, when 62,000 cars were made. .

The SMMT calls on the government to grant the auto industry a rebate from the energy charge in the same way that is given to energy-intensive industries, such as steel. It also needs British companies to have low-cost, low-carbon energy on the same terms as their European competitors.

Mike Hawes, Managing Director of SMMT, said: “Two years after the pandemic, car production is still suffering greatly. The recovery has not yet begun and, unlike the context of a challenging economic environment, which adds rising energy costs, urgent action needs to be taken. “necessary to protect the competitiveness of UK manufacturing.

“We want the UK to be at the forefront of the transition to electric vehicles, only as a market but as a manufacturer, so there is a pressing desire to act if we are to safeguard jobs and livelihoods. “

James Hind, CEO of automobile trading automobilewow, said: “Demand for new cars remains strong and in many cases customers are willing to wait. We still don’t see declining customer confidence affecting demand for new cars. new cars. “

“However, many of those who are not in a position to wait are turning to electric vehicles, which are less affected by production problems. In addition, automakers are prioritizing the production of electric vehicles, which means there are many features for from .

“The domino effect is, of course, the used car market. While motorists are struggling to get new models, many are turning to the used car market and as a result, demand is expanding and so are prices.

“Anyone who wants to replace a car might need to do it now. They may get fair value for their used gasoline or diesel car, and possibly get a new affordable electric vehicle much faster than a new gasoline or diesel vehicle. “

Inflation has reached a new 30-year high until March 2022, according to the most recent figures from the Office for National Statistics (ONS).

Forced to overcome high fuel costs following the standoff in Ukraine, the consumer price index (CPI) rose at an annual rate of 7% in the 12 months to March, up from 6. 2% in February.

The latest inflation figure beat the city’s expectations and came a day after U. S. customer value inflation came in the heat of the city’ peak. The U. S. will reach a 40-year high of 8. 5% in the year to March 2022.

Rising costs have put additional pressure on family finances already under control of a cost-of-living crisis. Commentators warn that inflation in the UK may exceed 8% before it starts to stabilise until the end of the year.

Inflation in the UK in March is more than 3 times higher than the government’s 2% target for the Bank of England (BoE). It is also well above the “around 6%” rate forecast by the BoE at its last bank rate-setting meeting in March. .

The rate is lately 0. 75%. Today’s inflation figure will increase pressure on the BoE’s financial policy committee to raise interest rates on May 5. The BoE has already raised the rate 3 times since December 2021.

Grant Fitzner, lead economist at the ONS, said: “Overall costs rose sharply in annual inflation in March. Among the biggest increases are gasoline costs, with costs most commonly collected before the recent relief (5 pence per liter) in fuel and furniture taxes.

“Restaurant and hotel costs also rose sharply in March, while after falling a year ago, there were increases in other types of food. “

Paul Craig, portfolio manager at Quilter Investors, said: “The spring of last month did little to allay the fears of those already feeling the financial pressure, and the advent of the new energy value cap and accumulation in national insurance have additional growth. “pressure.

“With wages not being maintained and pensions not expanding by a certain amount, things are going to get tough for a lot of consumers. “

Martin Beck, senior economic adviser at the EY ITEM club, said: “There will be a significant increase in inflation in the April data, as we expect the CPI rate to rise to at least 8. 5%. This will be caused by the 54% accumulation in the energy value ceiling and the recovery of the VAT rate for the hotel sector to 20%.

“That’s the top. But with the war in Ukraine that could help keep food and oil prices high for an extended period, and some other increase in the energy price cap scheduled for October, inflation will take time to fall. During 2022 as a whole, we expect CPI inflation to average close to 7%. »

Expanding the value of U. S. customersThe U. S. rose 8. 5% in the year to March 2022, beating Wall Street expectations and pushing the country’s inflation rate to its point in more than 40 years.

Today’s increase in the consumer price index, as reported by the U. S. Bureau of Labor Statistics. In the US, it was due to emerging energy, food and housing prices as the effect of the Russian invasion of Ukraine began to be felt.

Last month, US President Joe Biden banned all oil and fuel imports from Russia in the wake of the standoff in Ukraine, which began last February.

Commentators have warned that the latest figure will only increase pressure on the US Federal Reserve. The U. S. Government is going to increase the speed of interest rate increases it announces in an effort for inflation.

Last month, the Fed raised interest rates from 0. 25% to 0. 5%, its first hike in 4 years. Along with central banks, such as the Bank of England, the Fed has an inflation target of 2%. The Fed’s next rate-setting assembly will take a position on May 3 and 4.

UK inflation, measured by customer prices, stands at 6. 2% lately, while the BoE rate is 0. 75%. The BoE’s financial policy committee will meet in early May and its resolution will be taken on May 5.

Countries around the world are facing serious inflationary hurdles right now. Retail inflation in India last month hit a 17-month high of 6. 95%, up from 6. 07% in February 2022. Consumer costs in Turkey in the year to March 2022 reached 61%. , a cumulative seven percentage emissions last month.

Hinesh Patel, portfolio manager at Quilter Investors, said: “The Fed will be emboldened to continue its competitive interest rate hike in its bid to combat inflation. The values of used cars and other non-essential parts have begun to succeed at their maximum value. The numbers of , illustrate how surprising this energy-related thing is.

Dan Boardman-Weston, CEO and CIO of BRI Wealth Management, said, “The Fed has a delicate task ahead of it and has struggled to combat inflation without slowing economic growth. “

Typical household energy expenditures can reach just around £2,500 until the autumn of this year, according to an influential forecast group.

The EY Item Club (EYIC) says emerging energy and commodity prices, partly caused by the conflict in Ukraine, will have a serious effect on families and reduce UK economic activity.

It says the price increase will add to inflation in the UK that is already at “significant” levels, forecasting inflation to hit a 40-year high of 8. 5% next month and forecasting prices to rise by 6% by the end of 2022.

EYIC also warns that while families at all economic levels have enjoyed degrees of inflation in recent times, the 54% increase in typical household energy expenditures in April means that low-income families can enjoy an inflation rate of around 10%.

With additional increases in energy bills expected in October, EYIC says low-income families are expected to enjoy persistent levels of inflation relative to their higher-income counterparts, through 2023.

Martin Beck, Chief Economic Adviser at EYIC, said that while the recent Spring Declaration provides some assistance to households, the pressure on consumers continues: “Consumer spending is a key component of the UK economy, and the passage of the worst of the pandemic is expected to spur a corresponding recovery in consumption. But the war in Ukraine and emerging energy costs mean the outlook has darkened.

The Office for Budget Responsibility (OBR), the government’s budget watchdog, has forecast that inflation in the UK will peak at 8. 7% by the end of this year, with additional value exacerbated by the ongoing Russian invasion of Ukraine.

Inflation in the UK, as measured through the Consumer Price Index (CPI), hit a 30-year high of 6. 2% in the year to February 2022. food and durable goods. property.

In its report released alongside today’s spring statement, the OBR said it expects CPI inflation to peak at 8. 7% in the fourth quarter of 2022. It also forecast that inflation in the UK would remain above 7% every quarter from quarter 2022, until the first quarter of 2023.

The OBR said it also expects em inflation to outpace the expansion of earnings over the next year. He added that despite the policy measures announced by Rishi Sunak, Minister of Finance, in the spring declaration, there would be a net accumulation of taxes. across the economy starting next month.

As a result, the OBR predicted that inflation-adjusted after-tax household income would fall 2. 2% in the 2022/23 fiscal year, its biggest decline since records began in the 1950s.

Inflation in the UK hit a new 30-year high in February 2022, according to the most recent figures from the Office for National Statistics (ONS).

These figures will increase pressure on Chancellor Rishi Sunak to announce more monetary aid for families already facing a severe cost-of-living crisis when he delivers his spring at lunchtime.

The Consumer Price Index (CPI) rose at an annual rate of 6. 2% in the 12 months to February, from 5. 5% last month, its point since 1992. The figure exceeded forecasts for an increase of 5. 9%.

The CPI rose by 0. 8% in February 2022, the largest monthly accumulation between January and February since 2009.

In recent months, higher inflation has been driven by rising global tariffs on energy, oil, food and durable goods. The ONS reports that the main participants in the last accumulation of the monthly fee came from transport, family goods and furniture, while the food and non-alcoholic beverage charge also exceeds.

Today’s figures do not take into account the new increases in value brought about by the war in Ukraine, which began in late February.

Grant Fitzner, lead economist at the ONS, said: “Inflation rose sharply in February as costs of a wide range of goods and services rose, for products as varied as food, toys and games. Furniture and flooring also contributed to the rise in inflation. as the costs started after the New Year’s sales.

Paul Craig, portfolio manager at Quilter Investors, said: “All eyes will be on the chancellor when he submits his spring statement and announces the steps the government will take to tackle the existing cost-of-living crisis.

“This morning’s inflation data shows how dire the scenario is, and it is clear that the government wants to act to prevent many other people from falling into financial difficulties as their wages are temporarily consumed. “

Dan Boardman-Weston, CIO of BRI Wealth Management, said: “Knowledge continues to point to a few more months of embody inflation, but we expect this to slow down as summer approaches. “

The Bank of England, which raised interest rates to 0. 75% last week, forecast inflation to reach 8% in the spring, with further increases later in the year taking it to 10% and in all likelihood beyond.

The Bank of England raised the bank interest rate to 0. 75%, a cumulative 0. 25 percentage points. The move follows a buildup through the U. S. Federal Reserve. In the US yesterday, we saw rates rise from 0. 25% to 0. 5% (see article below).

Central banks are raising rates in an effort to remove inflationary pressures brought on by emerging energy, fuel and food prices. in Ukraine they are taken into account in the calculation.

Before the conflict, the Bank of England said inflation would exceed 7% this spring. Some forecasters say a rate above 8% is possible, largely due to a 54% increase in domestic energy bills, but pessimistic highs have forecast rates above 10%.

The maximum recent inflation figure for the United States is 7. 9%, a 40-year high. Again, it is expected to accumulate more in the coming months.

The Bank of England has now increased the rate of reduction 3 times since December 2021, and further increases may come.

This will be bad news for those with variable-rate and follow-up mortgages, whose payments will likely add up to reflect the premium charge on loans. Homeowners with fixed interest rates will likely have to pay more at the end of their term and will want to locate loans.

The news will be more positive for savers if the establishments have an impact on rates.

The Bank of England’s next announcement is scheduled for May 5.

The U. S. Federal Reserve The U. S. Raised Interest Rates from 0. 25% to 0. 5% in an effort to counter the highest inflation rates over the past 40 years. This is the first accumulation of U. S. interest rates. USA since 2018.

The value index of the country’s customers increased by 7. 9% in February, this figure does not take into account the new inflationary pressures resulting from the shock in Ukraine and the economic sanctions imposed on Russia (see article below).

The Fed has an inflation target of 2%. Rising interest rates aim to cool the economy by reducing the availability of “cheap” money. Further rate increases are possible in the coming months; in the words of the Federal Reserve: “. . . continued increases in target diversity will be appropriate.

The Bank of England will announce its most recent resolution on the UK rate of reduction (Thursday). The rate has risen twice since December and now stands at 0. 5%.

The inflation rate in the UK is 5. 5% (the Bank’s target is also 2%). Economists expect a 0. 25 percentage point increase to bring the rate to 0. 75%, which would leach into loan rates: Many lenders have “incorporated” a rate hike into their existing offerings.

Existing borrowers who profit from floating rate and follow-up agreements will see their loan load pile up over the next two months. Those with consistent rates will likely face more expensive loans when their current contract comes to an end.

There have been hypotheses that the rate of reduction could double to 1% given rising inflationary pressures on the economy. The Bank of England has already admitted that inflation will reach 7% this spring, once again the prediction made before the Ukraine crisis. . Some commentators have warned that inflation may have double-digit success in the coming months.

The Office for National Statistics (ONS), which measures the rate of inflation in the UK, has announced changes to the basket of items it uses to track value developments.

The ONS tracks around 730 asset and facility values for its customers’ value indices. It updates its basket annually “to avoid possible biases that could develop in another way, for example, due to the progression of completely new goods and facilities. These procedures also help to ensure that the indices reflect longer-term trends in customer spending habits.

The most recent updates see the inclusion of a variety of new items, and others are discontinued due to the conversion of user behaviors. It can be noted that many of the changes reflect the impact of the pandemic and related lockdowns.

The new pieces come with meatless sausages, sports bras and short blouses, antibacterial surface wipes, adult craft and hobby kits, and puppy collars.

Items removed from the list include men’s suits, charcoal, donuts, and paper reference books.

Not all adjustments can be attributed to the pandemic. For example, meatless sausages have been added to expand the diversity of “free” products in the basket, reflecting the expansion of vegetarianism and veganism.

However, antibacterial surface wipes have been added to the list of cleaning products to constitute existing cleaning trends such as the demand for antibacterial products in reaction to COVID-19.

Similarly, puppy collars were brought due to the increase in customer spending on puppy accessories, similar to the increase in the number of puppy owners since the beginning of the pandemic.

Changes are also made in the basket in reaction to broader adjustments in society. For example, the sale of domestic coal will be banned in 2023 based on government moves to combat climate change.

The ONS claims that its cutting of the basket in 2022 protects the index from the possibility of not being able to collect value data towards the end of the year and value movements, which are only noticed as past due on the deadline of the ban to take effect.

He says that, in some cases, parts are abandoned to reflect declining spending, such as donuts: “Research and anecdotal evidence from stores have indicated that sales have fallen, possibly due to the accumulation of running away from home.

“Most of the individual cakes, which is what the ‘donuts’ represent, are in multiple packages, and a separate multi-pack cake item remains in the basket. “

The U. S. Consumer Price Index The U. S. economy rose 7. 9% in the year to February 2022, pushing the country’s inflation rate to its point since January 1982.

The increase, reported today by the U. S. Bureau of Labor Statistics. The U. S. economy, boosted by emerging gas, food and housing costs, but failed to account for the peak of increases in energy value caused by the Russian invasion of Ukraine on Feb. 24.

Ahead of the latest inflation news, the U. S. Federal Reserve is shutting down. The U. S. was already under great pressure on inflation by raising interest rates at its assembly next week.

In addition to imposing sanctions on Russia’s central bank and the country from the global monetary system, the U. S. administration has been able to impose sanctions on Russia’s central bank and the country. The U. S. , led by President Joe Biden, has banned imports of Russian oil and gas.

Last month, in the face of the same inflationary winds that affect all primary economies, the Bank of England (BoE) raised the rate of reduction from 0. 25% to 0. 5%. This moment accumulates in three months, after an increase from 0. 1% to 0. 25%. % in December 2021.

The BoE’s financial policy committee will also meet next week to determine whether further financial adjustment is necessary, as British families continue to face a cost-of-living crisis caused by runaway inflation exacerbated by relentless rise in energy prices.

Any increase in the rate of reduction in the UK would inevitably result in higher interest rates for borrowers, especially those with mortgages.

Richard Carter, head of constant rate studies at investment company Quilter Cheviot, said: “All hopes that inflation has started to peak in the US is all about the us. prevent there. A rate hike at next week’s Fed meeting turns out to be a certainty.

Caleb Thibodeau of Validus Risk Management said, “It will take a super-replacement of cases to steer the Fed away from a hike next Wednesday and everything next from the Federal Open Market Committee this year. “

Inflation in the UK, as measured through the Consumer Price Index (CPI), reached a 30-year high in January 2022, according to the most recent figures from the Office for National Statistics (ONS).

Consumer costs rose at an annual rate of 5. 5% in January 2022, up from 5. 4% last month and well above the 0. 7% recorded in January last year. Prices last accelerated in March 1992.

Inflation is now more than 3 percentage points higher than the government’s 2% target for the Bank of England (BoE). The BoE recently forecast that inflation in the UK will exceed 7% this spring before starting to fall thereafter.

The ONS said clothing, shoes, emerging costs of household goods and emerging rents helped drive up costs last month. But he added that this January’s increase was partially offset by declining costs at the fuel pump, following records late last year.

Since then, fuel costs have reached a new high, reaching £1. 48 per litre of petrol and £1. 51 per litre of diesel. With the domestic energy ceiling reaching 54% in April, this is the explanation for why the Bank’s gloomy short-term forecast forecasts.

Grant Fitzner, the ONS’s lead economist, said last month that there were classic value declines in some sectors, but that “it’s the smallest January drop since 1990, with fewer sales than last year. “

The most recent announcement via the ONS is expected to increase pressure on the BoE to take a competitive stance on interest rates. The BoE has already announced two rate increases in the last 3 months. Lately, the rate is 0. 5%.

Jason Hollands, from investment platform Bestinvest, said: “There will almost be additional and significant increases in inflation, in part due to the lifting of the cap on energy bills. Therefore, eared screws will continue to tighten in the coming months, with the Bank forecasting that inflation will reach 7% until Easter.

Rupert Thompson, wealth manager Kingswood, said: “Inflation will rise in the coming months, probably peaking at around 7. 5% in April, when the increase in the energy value limit is felt. Today’s data leaves a further rate increase of 0. 25%. in March, it all seems like a deal still done.

Last month, 4 of the nine members of the Bank’s Monetary Policy Committee, which makes decisions on interest rates, voted to raise the rate of reduction from 0. 5% to 0. 75%. If this warmongering sentiment prevails at the next assembly in March, the rate may double to 1%.

Inflation in the UK, measured through the consumer price index, jumped to 5. 4% in the 12 months to December 2021, its point in 30 years, according to the most recent figures from the Office for National Statistics (ONS).

The CPI last reached this point in March 1992.

In line with recent global economic announcements, inflation in the UK has soared in recent months (November’s CPI figure stood at 5. 1%), leaving UK families facing the risk of a worsening cost-of-living crisis. 7,5%.

December’s figure is more than 3 percentage issues above the Bank of England’s (BoE) 2% target.

The latest knowledge of inflation may lead to an immediate moment in interest rates following the Bank of England’s resolution before Christmas to raise the rate of reduction to 0. 25% from its all-time low of 0. 1%.

According to the ONS, a number of factors are to blame for the new accumulation of inflation. These come with emerging food prices, restaurant bills, hotel rates, furniture, family items, clothing, and shoes as Christmas approaches.

But Grant Fitzner, lead economist at the ONS, said there was little evidence that the restrictions imposed by the pandemic contributed to rising prices: “The shutdowns of the economy last year had an effect on some elements but, overall, this effect on the overall inflation rate was negligible. “

Paul Craig, portfolio manager at Quilter Investors, said: “The Bank of England justified its resolution to raise rates in December in the face of Omicron’s uncertainty, but it can still approve either tactic when its Monetary Policy Committee [MPC] meets in early February.

“The Attorney General’s Office will face a complicated dilemma between ensuring monetary stability or helping families cope with a cost-of-living crisis that is expected to weigh on family finances during a challenging winter period. “

In addition to an increase in national insurance contributions in April and a lasting freeze on non-public tax breaks, which will push many workers toward higher tax brackets, families face the prospect of a significant increase in the energy bill due to a building. up in the official value limit.

Analysts suggest costs may rise as much as 50% when the cap is adjusted in April. The duration of construction will be announced in early February.

Last fall, after temporarily postponing calculations on the so-called “triple lockdown”, the government showed that it would accumulate a diversity of state benefits from April 2022 on the September 2021 CPI figure of 3. 1%.

For 2022-2023, the total state pension will increase from its current rate of £179. 60 per week to £185. 20 per week (£9630 per year).

Benefits for working age, benefits to meet new wishes resulting from a disability and care benefits will increase at the same rate of 3. 1% also from April.

Other bills expected to accumulate are the Universal Credit, Personal Independence Payments, Family Allowances, Job Seeker Allowance, Income Support and Pension Credit.

Inflation, measured through the Consumer Price Index (CPI), rose by 5. 1% in the 12 months to November 2021, its point in more than a decade, according to the most recent figures from the Office for National Statistics (ONS).

Inflation followed a strong upward trajectory in the last component of 2021 – the October figure of 4. 2% – and is now at its highest point since September 2011.

The most recent figure is well above the city’s forecast of 4. 7% and is now more than double the Bank of England’s 2% target set through the government. The central bank unveils its latest resolution of the year on the issue later this week.

Grant Fritzner, lead economist at the ONS, said: “A wide variety of value increases have contributed to the sharp rise in inflation. “

He added that the price of fuel had risen significantly, “pushing average gasoline prices more than we had noticed before. “Other participants come with emerging clothing costs, as well as emerging prices for food, used cars, and higher taxes on tobacco.

According to Canada Life, emerging inflation is forcing the UK’s estimated 40 million families to collectively place another £39. 6 billion a year in their standard of living compared to 12 months ago.

Andrew Tulley, CTO of Canada Life, said: “The latest inflation figures leave us with little hope of festive monetary celebrations. We all feel the pinch and the truth is that the average British family will have to find more than a thousand pounds next year. to the existing popular of living.

The UK figures stick to recent US inflation data. The U. S. Food and Drug Administration showed that customer costs in November rose at their fastest rate in nearly 40 years.

Last week, the U. S. Bureau of Labor Statistics(The U. S. Consumer Agency reported that its customer value index had risen 6. 8% in the year to November. The last time this figure increased was in 1982.

The Bank of England warned that inflation could “comfortably exceed 5%” in the coming months, when energy regulator Ofgem puts its energy value cap in place in April 2022, raising the cost of energy expenditures for millions of British households.

The cap is on moving average costs in wholesale energy markets: the applicable era for the next adjustment in April is between August 2021 and February 2022.

Speaking to Leeds Business School, the Bank’s Deputy Governor for Monetary Policy, Ben Broadbent, said: “Two-thirds of the way, we can already be pretty sure (unfortunately) of some other significant increase in retail energy costs next spring.

Ofgem’s existing value cap, which came into effect on 1 October, is set at a record £1,277 per year or £1,309 for a prepaid meter fee limit. The limit applies to families with a variable rate (SVT) that consume an average amount of energy. It refers to the unit value of the energy, which means that, depending on the amount of energy used, some families will pay less or more.

Inflation is already high, with an annual expansion of 4. 2% in October, as measured by the Consumer Price Index (CPI). This is up from 3. 1% in September and more than double the government’s target of 2%.

The inflation announcement will take place on December 15.

Broadbent told Leeds Business School: “I come here at a normal time for the economy in general and for financial policy in particular. “

Inflation, as measured through the Consumer Price Index (CPI), rose by 4. 2% in the 12 months to October 2021, according to figures released by the Office for National Statistics. This follows an increase of 3. 1% in September,

Today’s figure is the highest 12-month inflation rate since November 2011, when the annual CPI inflation rate was 4. 8%.

This figure is more than double the Bank of England’s 2% target set through the government. This fuels expectations that the Bank will raise its key interest rate in December in a bid to calm the economy, a move that would most likely lead to a buildup. in loan rates.

The existing rate of 0. 1% was widely expected to rise earlier this month, but the Bank did not react at its Nov. 4 meeting.

The change in life is attributed to the accumulation in the value cap of domestic energy on October 1, emerging pump values, and inflationary pressures across the economy as businesses struggle with new rates of raw curtains.

Prices at hotels and restaurants have also been higher than last year, as hotel corporations no longer take advantage of a relief on their VAT bills.

Economists warn that any accumulation in the rate of reduction will not follow the trail of inflation for several months. Dan Boardman-Weston of BRI Wealth Management, said: “Inflation will continue to worsen in the coming months as the source remains scarce, demand remains The physically powerful and basic effects technically push the inflation rate upwards.

“This will certainly put pressure on the Bank of England to raise rates, which it will have to do in the coming months given the high levels of inflation and the strength of the labour market. “

U. S. inflation topped 6% in October. As with the UK, the hope is that the reasons for such a steep rise in costs will be “transitory”, but global supply chain disruptions, coupled with emerging demand as economies emerge from the Covid-19 crisis, are generating gloomy forecasts in some sectors. .

However, Boardman-Weston warns that he opposes any knee-jerk reaction: “Nothing we see leads us to this inflation being permanent, and as we begin to head into the spring of next year, the numbers will start to fall rapidly. “

“The Bank wants to be careful to rush too far to tighten financial policy, as a political misstep can damage the economy more than this transient inflation we’re seeing. “

While borrowers will be concerned about the latest inflation figures, savers will likely see a glimmer of hope for a higher rate on their accounts: any improvement will need to be placed in the context of emerging prices.

The Bank will announce its new rate resolution on December 16.

Inflation in the UK resisted an upward trend and declined last month, according to the most recent official figures from the Office for National Statistics (ONS).

The Consumer Price Index (CPI) measure increased by 3. 1% in September 2021, up from 3. 2% in August.

The ONS said emerging shipping values were the main contributors to an overall value increase, along with household goods, food and furniture.

He added that restaurants and hotels helped reduce the rate of inflation. In fact, costs increased less this summer compared to the same time last year, when the government’s Eat Out To Help Out program was underway.

Despite a monthly decline in the inflation rate, the point remains well above the Bank of England’s (BoE) 2% target.

September’s inflation figure is not expected to have an effect on the BoE’s looming interest rate decision, scheduled for early November, as a pause in rate hikes had been anticipated.

Commentators that the fall in inflation in September was a blow, and further increases are expected in the coming months. In fact, the most recent figures have not yet taken into account the recent rise in energy costs or the fuel pump crisis of a few weeks ago.

Laith Khalaf, head of investment research at agents AJ Bell, warned: “Inflation will get even worse before it gets better. Inflation is largely felt, given that the main drivers are housing and transportation costs, which are inevitable for almost everyone in the country.

September’s inflation figure of 3. 1% will be used for the accumulation of the state pension next year.

This means that from April 2022, a retiree receiving the new full state pension can expect an increase from £179. 60 per week to £185. 15. For those receiving the state’s basic pension, the current figure of £137. 60 will be £141. 86 next spring.

Next year’s buildup may have reached 8% if the government had not removed its so-called “triple lockdown” for a year, based on an artificially distorted picture of wage expansion in the UK after the pandemic.

The triple blockade is intended to increase the government’s pension according to the highest of the 3 measures: 2. 5%, CPI inflation and source of income. Earlier this year, the government announced that it would suspend the use of the latter after the source of income. Knowledge development improved as other people returned to work after the end of their leave program.

The inflation rate in the UK jumped sharply last month, according to the most recent figures from the Office for National Statistics (ONS).

The Consumer Price Index (CPI) rose by 3. 2% in August, up from 2% the previous month. The 1. 2 percentage points constitute the highest inflation rate in the 12-month series in national CPI statistics, which began in 1997.

Inflation in the United Kingdom exceeded 10% in 1990 and exceeded 26% in 1975.

The most recent figures imply that inflation is now at its peak since March 2012, due to emerging costs of transport, restaurants and hotels.

Last summer, food and beverage costs were reduced due to the government’s transience in reaction to the pandemic.

Used car costs also contributed to the increase. Demand is higher due to a relief in the source of new models, attributed to the shortage of PC chips used in their manufacture.

The increase in power is expected to drive further increases in the inflation rate in the coming months.

The most recent CPI figure exceeds the official target of 2% set through the Bank of England (BoE).

Jonathan Athow, deputy national statistician at the ONS, said: “August saw the largest monthly accumulation of annual inflation since the advent of the series almost a quarter of a century ago.

“Probably, much of this will be temporary, as last year the costs of places to eat and cafes fell particularly due to the Eat Out to Help Out program, while this year’s costs increased. “

August’s inflation coincides with a recent rise in costs in wholesale energy markets, a mix that may have serious monetary implications for millions of UK energy consumers this winter.

Last month, Ofgem, the UK’s energy regulator, announced it increased its cap on popular variable-rate predetermined price lists by 12% to £1,277, its highest point on record. The new limit comes into effect from 1 October, when the cap on prepaid fares will increase from £153 to £1,309.

Approximately 15 million families will be affected by the limit increases. Ofgem recommends that those with predetermined rates replace their electric rate to find a less expensive alternative. Prepaid consumers can also save money by switching.

Next month’s data, which cover September’s inflation figures, will be the point at which the state pension will be revalued from April 2022 as a component of the new “double confinement” transitory nature recently introduced by the government.

The inflation rate in the UK slowed last month to the most recent figures from the Office for National Statistics (ONS).

The Consumer Price Index (CPI) rose 2% in July, up from 2. 5% the previous month. The fall, driven by falling costs for clothing, footwear and recreational items, brings the inflation figure now in line with the official Bank of England figure. target of 2%.

Jonathan Athow of the ONS said: “Inflation fell in July on a wide range of goods and services, adding clothing, which fell when summer sales returned after the pandemic hit the sector last year.

“This was offset by a strong increase in the value of used cars against a backdrop of higher demand, following a shortage of new models. “

Commentators say a drop in the headline inflation rate may be only temporary. The Bank of England has forecast that customer value expansion could still reach 3% this month and peak at around 4% later in the autumn.

Richard Hunter of Interactive Investor said: “The easing of a slowdown in inflation will likely be short-lived, with upward pressures pending.

“Cost inflation continues to bubble beneath the surface, either in terms of blockages in the supply chain that raise costs, as well as in terms of pressures on the source of labor. chimney as the year progresses. “

Despite a monthly drop in the CPI, Sarah Coles of the Hargreaves Lansdown broker had this warning for savers: “Even at 2%, inflation can cause serious damage to your savings, so we want to protect ourselves by refusing to settle for depressing rates. of the giants of the top street (banking). These will be offering 0. 01% on easily accessible accounts, while the average (for all savings accounts) is 0. 07%, and the competitive maximum without restrictions is 0. 65%.

“Fixing your 12-month savings will save you up to 1. 3 percent, which will be particularly the damage caused by inflation,” he added.

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