Price rises continue as inflation hits new high
Inflation is currently running at more than twice the target rate, new figures suggest.The latest Consumer Price Index (CPI) was released today, showing that average price rises hit 4.4 per cent for July.This is 0.6 per cent up on June's figure, and 0.2 per cent above analysts' expectations for last month.Moreover, it is 2.4 per cent above the Bank of England's own target.The new Retail Price Index (RPI) - an alternative inflation measure - was also released, and also showed a rise.Big rises in food prices and fuel were blamed for the new five per cent rate - up from 4.6 per cent in June.Global Insight economist Howard Archer said: "The sharp spike up in inflation in July increases the risk that the Bank of England will raise interest rates despite the fact that the economy seems more likely than not to contract over the second half of the year."
Share this..
Related stories
Rent arrears ‘more than double’ since 2007
12/12/2013 Figures from the debt charity, Money Advice Trust (MAT), have revealed that the number of people falling behind on rent payments has more than doubled in the last six years.
The MAT has labelled this a “rent debt crisis” and has said that it has received just shy of 20,000 calls in the first nine months of the year from people who have fallen behind with rent. This compares...
Read MoreIs inflation the next challenge for the Bank of England?
The Office for National Statistics yesterday revealed that factory prices rose by 0.4% in September which is in sharp contrast to the recent fall of 0.3%. When you consider that much of the increase in factory prices was actually caused by "elements of core inflation" it will be difficult for the UK government and the Bank of England to ignore this increase. So what can the bank of England do?
Budget Headlines : Investment into offshore windfarms
Investment into offshore windfarms...
Read MoreBank of England set to widen funding window
In a move which is set to attract a large amount of scepticism it has been revealed that the Bank of England is set to widen its funding window for distressed banks and allow them access to more funding than ever before. In a move to the US style 'discount window', banks will be able to access cheaper funds more frequently in order to keep money markets moving.
More controversially...
Has the Conservatives gamble paid off?
While many people are still contemplating the fact that the Conservatives announced the most severe cost-cutting exercise in over 30 years, initial opinion polls have put the party 14 percentage points ahead of Labour. This is an increase of one percentage point since the infamous George Osborne statement regarding the UK finances and future investment in the UK public sector. So has the gamble pa...
Read More