FOREX TradingCharts.com

Financial News: UK Inflation Eases More-Than-Expected

UK Inflation Eases More-Than-Expected

12/16/2020 - 06:55:00 (RTTNews)

(RTTNews) - UK inflation slowed more-than-expected in November due to falling clothing prices, data published by the Office for National Statistics showed on Wednesday.

Consumer price inflation weakened to a three-month low of 0.3 percent from 0.7 percent in October. The rate was well below the economists' forecast of 0.6 percent and the central bank's 2 percent target. "The price fall in November this year reflects increased discounting and there have been media reports that some Black Friday sales may have spread further across the month," the ONS said.

Clothing and footwear prices decreased 3.6 percent annually and food and non-alcoholic beverages prices slid 0.6 percent. These were partially offset by upward contributions from games, toys and hobbies, and accommodation services.

At the November meeting, the Bank of England said inflation is expected to remain at, or just above 0.5 percent during most of the winter, before rising quite sharply towards the 2 percent target as the effects of lower energy prices and value added tax dissipate.

The BoE is set to announce its next monetary policy decision on December 17.

November's drop in inflation will not prompt the monetary policy committee to announce any further policy stimulus tomorrow, Ruth Gregory, an economist at Capital Economics, said. The bank is unlikely to take any action for some time to come, unless there is a no deal Brexit.

"In that case, we think the MPC would look through the temporary rise in inflation and instead focus on quashing any financial market dislocation and supporting demand," the economist added.

On a monthly basis, consumer prices dropped 0.1 percent in November after staying flat a month ago. This was the first fall in three months and in contrast to a 0.1 percent rise economists' had forecast.

Excluding energy, food, alcoholic beverages and tobacco, core inflation eased more-than-expected to 1.1 percent from 1.5 percent in October. The expected rate was 1.4 percent.

Another report from the ONS showed that output prices decreased for the ninth consecutive month in November. Nonetheless, the rate of decline slowed to 0.8 percent from 1.4 percent. Prices were forecast to drop 0.9 percent.

Month-on-month, output prices gained 0.2 percent, following a flat growth in October. At the same time, input prices grew 0.2 percent on month in November, compared to a 0.4 percent rise in October.

The annual fall in input prices slowed to 0.5 percent from 1.2 percent. Economists had forecast an annual 2.5 percent decline.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


U.S. Existing Home Sales Unexpectedly Climb 0.7% In December (14 min(s), 39 sec(s) ago)
(RTTNews) - Existing home sales in the U.S. unexpectedly rebounded in the month of December, accor ...Full Story»

UK Budget Deficit Surges On Covid-19 Support Schemes (02 hr(s), 13 min(s), 21 sec(s) ago)
(RTTNews) - The UK budget deficit surged to the third highest level on record in December as the g ...Full Story»

Italy Construction Output Grows In November (02 hr(s), 46 min(s), 21 sec(s) ago)
(RTTNews) - Italy's construction output rose for the first time in three months in November, d ...Full Story»

Eurozone Private Sector Activity Decline Deepens In January (03 hr(s), 10 min(s), 21 sec(s) ago)
(RTTNews) - Amid the ongoing Covid-19 pandemic, euro area private sector activity contracted at an ...Full Story»

Taiwan Jobless Rate Falls In December (03 hr(s), 26 min(s), 21 sec(s) ago)
(RTTNews) - Taiwan's jobless rate fell marginally in December, figures from the Directorate Ge ...Full Story»

Ireland Wholesale Prices Fall Further (03 hr(s), 27 min(s), 21 sec(s) ago)
(RTTNews) - Ireland's wholesale prices declined further in December, data from the Central Sta ...Full Story»

Latvia Producer Prices Decline Slows In December (03 hr(s), 33 min(s), 21 sec(s) ago)
(RTTNews) - Latvia's producer prices declined December, albeit at a softer pace, figures from ...Full Story»

Poland Producer Prices Steady In December (03 hr(s), 35 min(s), 21 sec(s) ago)
(RTTNews) - Poland's producer prices remained stable in December, data from Statistics Poland ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

U.S. Existing Home Sales Unexpectedly Climb 0.7% In December

01/22/2021 - 10:27 AM (RTTNews)
(RTTNews) - Existing home sales in the U.S. unexpectedly rebounded in the month of December, accor ...Full Story>>

UK Budget Deficit Surges On Covid-19 Support Schemes

01/22/2021 - 07:59 AM (RTTNews)
(RTTNews) - The UK budget deficit surged to the third highest level on record in December as the g ...Full Story>>

Italy Construction Output Grows In November

01/22/2021 - 07:26 AM (RTTNews)
(RTTNews) - Italy's construction output rose for the first time in three months in November, d ...Full Story>>

Eurozone Private Sector Activity Decline Deepens In January

01/22/2021 - 07:02 AM (RTTNews)
(RTTNews) - Amid the ongoing Covid-19 pandemic, euro area private sector activity contracted at an ...Full Story>>

Taiwan Jobless Rate Falls In December

01/22/2021 - 06:46 AM (RTTNews)
(RTTNews) - Taiwan's jobless rate fell marginally in December, figures from the Directorate Ge ...Full Story>>

Do not sell my personal information

Copyright © 2021. 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.