FOREX TradingCharts.com

Financial News: UK Inflation Moves To 2% Target On Lower

UK Inflation Moves To 2% Target On Lower Air Fares, Car Prices

06/19/2019 - 08:53:00 (RTTNews)

(RTTNews) - UK inflation slowed to the central bank target in May, thanks to lower costs for air travel and falling car prices, data from the Office for National Statistics showed Wednesday.

Consumer price inflation hit the Bank of England's target of 2 percent in May versus 2.1 percent in April. The rate also matched economists' expectations.

The annual decline was largely driven by easing fares for transport services, particularly air fares due to the timing of Easter and falling car prices. Partially offsetting, upward contributions came from higher costs of range of games, toys and hobbies.

On a monthly basis, consumer prices gained 0.3 percent versus 0.4 percent rise a year ago. Monthly inflation also came in line with expectations.

Core inflation that excludes energy, food, alcoholic beverages and tobacco, slowed to the weakest in more than two years to 1.7 percent in May from 1.8 percent in the previous month.

A number of transitory factors such as the recent weakness in sterling may lift consumer prices back above target in the months ahead, Suren Thiru, head of economics at the British Chambers of Commerce, said.

"However, as firms unwind historically-high stock levels, economic conditions are expected to weaken, which should keep inflation close to the Bank of England's 2 percent target for some time to come," Thiru added.

The BoE is set to keep its key rate and quantitative easing unchanged at the June monetary policy meeting. The announcement is due on Thursday.

The bank is expected to stick to its reasonably hawkish mantra at tomorrow's meeting, James Smith, an ING economist said. However, it is unlikely the Bank will get an opportunity to tighten further this year.

The consumer prices index including owner occupiers' housing costs advanced 1.9 percent annually in May, slower than the 2.0 percent increase in April, the ONS reported.

Another report from ONS showed that the factory gate inflation slowed in May due to weak petroleum prices.

Output price inflation slowed for the third straight month in May, to 1.8 percent from. 2.1 percent in April. But this was slightly above the forecast of 1.7 percent.

Month-on-month, output prices rose 0.3 percent, the same rate as seen in April but faster than the expected 0.2 percent.

Further, data showed that input price inflation eased sharply to 1.3 percent from 4.5 percent in April. This was the lowest since June 2016. Nonetheless, the rate was above the forecast of 0.8 percent.

On a month-on-month basis, input prices remained flat versus the expected growth of 0.2 percent.

Separately, the ONS said house price inflation slowed to 1.4 percent in April from 1.6 percent in March. The lowest annual growth was in London, where prices fell 1.2 percent over a year ago.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


UK Budget Deficit Widens In June (36 min(s), 03 sec(s) ago)
(RTTNews) - The UK budget deficit widened to the highest June level since 2015, the Office for Nat ...Full Story»

Eurozone Current Account Surplus Increases In May (48 min(s), 03 sec(s) ago)
(RTTNews) - The euro area current account surplus increased in May, data from the European Central ...Full Story»

New Zealand Credit Card Spending Rises In June (02 hr(s), 25 min(s), 03 sec(s) ago)
(RTTNews) - New Zealand's credit card spending growth improved in June, figures from Reserve B ...Full Story»

Germany's Producer Price Inflation Eases In June (02 hr(s), 42 min(s), 03 sec(s) ago)
(RTTNews) - Germany's producer price inflation slowed in June, figures from Destatis showed Fr ...Full Story»

Japan All Industry Activity Growth Slows In May (03 hr(s), 20 min(s), 03 sec(s) ago)
(RTTNews) - Japan's all industrial activity rose for the second month in May but the pace of e ...Full Story»

South Korea Producer Price Inflation Slows In June (05 hr(s), 01 min(s), 03 sec(s) ago)
(RTTNews) - South Korea's producer price inflation slowed in June, data from Bank of Korea sho ...Full Story»

China's Rising Household Debt Likely To Weigh On Growth: Fitch (05 hr(s), 14 min(s), 03 sec(s) ago)
(RTTNews) - Chinese households' rising debt servicing costs could weigh on the medium-term eco ...Full Story»

European Economics Preview: UK Public Sector Finance Data Due (12 min(s), 57 sec(s) ago)
(RTTNews) - Public sector finance data from the UK is due on Friday, headlining a light day for th ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

UK Budget Deficit Widens In June

07/19/2019 - 04:51 AM (RTTNews)
(RTTNews) - The UK budget deficit widened to the highest June level since 2015, the Office for Nat ...Full Story>>

Eurozone Current Account Surplus Increases In May

07/19/2019 - 04:39 AM (RTTNews)
(RTTNews) - The euro area current account surplus increased in May, data from the European Central ...Full Story>>

New Zealand Credit Card Spending Rises In June

07/19/2019 - 03:02 AM (RTTNews)
(RTTNews) - New Zealand's credit card spending growth improved in June, figures from Reserve B ...Full Story>>

Germany's Producer Price Inflation Eases In June

07/19/2019 - 02:45 AM (RTTNews)
(RTTNews) - Germany's producer price inflation slowed in June, figures from Destatis showed Fr ...Full Story>>

Japan All Industry Activity Growth Slows In May

07/19/2019 - 02:07 AM (RTTNews)
(RTTNews) - Japan's all industrial activity rose for the second month in May but the pace of e ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.