FOREX TradingCharts.com

Financial News: UK Inflation Tops 2% For First Time Since

UK Inflation Tops 2% For First Time Since December

05/22/2019 - 08:06:00 (RTTNews)

(RTTNews) - UK consumer price inflation exceeded the central bank's target in April for the first time since December, driven by higher utility costs and air fares.

Meanwhile, core inflation held steady for a second month in a row, further damping hopes of an interest rate hike this year.

Consumer price inflation rose to 2.1 percent in April from 1.9 percent in March, figures from the Office for National Statistics revealed Wednesday.

The rate exceeded the 2 percent target, but this was slightly below the forecast of 2.2 percent.

Electricity prices surged 10.9 percent and gas prices climbed 9.3 percent. The timing of Easter falling towards the end of April, contributed to an increase in air fares by 26.4 percent.

Core inflation held steady at 1.8 percent, while the rate was forecast to rise marginally to 1.9 percent.

Inflation is likely to remain above 2 percent for the rest of the year, as strong wage growth prompts firms to raise prices, Thomas Pugh, a UK economist at Capital Economics, said.

Nonetheless, with Brexit still looming and growth likely to be modest this year, the economist said the Bank of England is unlikely to raise rates until next summer.

ING economist James Smith said with wage growth close to cycle highs, a November rate hike shouldn't be totally ruled out.

Month-on-month, consumer prices gained 0.6 percent in April versus expected rate of 0.7 percent.

Data showed that the consumer prices index including owner occupiers' housing costs advanced 2 percent annually versus 1.8 percent in March. Likewise, retail price inflation advanced to 3 percent from 2.4 percent.

Another report from ONS showed that output price inflation slowed slightly to a 3-month low of 2.1 percent in April from 2.2 percent in March. The rate has remained positive since July 2016.

On a monthly basis, output prices climbed 0.3 percent following a 0.1 percent rise in the previous month.

On the other hand, input price inflation rose to 3.8 percent from 3.2 percent in March. On month, input prices climbed 1.1 percent, in contrast to a 0.8 percent drop a month ago.

The ONS also reported that house prices increased 1.4 percent annually in March following a 1 percent rise in February.

However, over the past three years, there has been a general slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England, the ONS reported.

The ONS data showed that the budget deficit in April was the lowest for the month since 2007. Public sector net borrowing, or PSNB, excluding public sector banks was GBP 5.8 billion, which was 0.03 billion less than 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


Russia Slashes Key Interest Rate, Signals More Easing (49 min(s), 52 sec(s) ago)
(RTTNews) - Russia's central bank cut the key interest rate for the first time in over a year ...Full Story»

U.S. Business Inventories Climb In Line With Estimates In April (50 min(s), 52 sec(s) ago)
(RTTNews) - After reporting virtually no change in U.S. business inventories in the previous month ...Full Story»

U.S. Consumer Sentiment Deteriorates Amid Concerns About Higher Tariffs (43 min(s), 52 sec(s) ago)
(RTTNews) - Consumer sentiment in the U.S. has deteriorated in the month of June, according to a r ...Full Story»

U.S. Industrial Production Rises More Than Expected In May (28 min(s), 52 sec(s) ago)
(RTTNews) - Reflecting a substantial rebound in utilities output, the Federal Reserve released a r ...Full Story»

U.S. Retail Sales Rise 0.5% In May, April Data Revised Significantly Higher (46 min(s), 52 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Friday showed U.S. retail sales rose b ...Full Story»

U.S. Retail Sales Climb 0.5% In May (09 min(s), 52 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Friday showed U.S. retail sales rose b ...Full Story»

China Industrial Production Growth Weakens (35 min(s), 52 sec(s) ago)
(RTTNews) - China's industrial output grew at a weaker pace in May as higher tariffs imposed b ...Full Story»

Italy's Inflation At 13-Month Low (10 min(s), 52 sec(s) ago)
(RTTNews) - Italy's consumer price inflation slowed more than initially estimated to a 13-mont ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

U.S. Business Inventories Climb In Line With Estimates In April

06/14/2019 - 10:19 AM (RTTNews)
(RTTNews) - After reporting virtually no change in U.S. business inventories in the previous month ...Full Story>>

Russia Slashes Key Interest Rate, Signals More Easing

06/14/2019 - 10:18 AM (RTTNews)
(RTTNews) - Russia's central bank cut the key interest rate for the first time in over a year ...Full Story>>

U.S. Consumer Sentiment Deteriorates Amid Concerns About Higher Tariffs

06/14/2019 - 10:12 AM (RTTNews)
(RTTNews) - Consumer sentiment in the U.S. has deteriorated in the month of June, according to a r ...Full Story>>

U.S. Industrial Production Rises More Than Expected In May

06/14/2019 - 09:57 AM (RTTNews)
(RTTNews) - Reflecting a substantial rebound in utilities output, the Federal Reserve released a r ...Full Story>>

U.S. Retail Sales Rise 0.5% In May, April Data Revised Significantly Higher

06/14/2019 - 09:15 AM (RTTNews)
(RTTNews) - A report released by the Commerce Department on Friday showed U.S. retail sales rose b ...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.