CPI rises to 5.2%
The new consumer price index (CPI) was released today, showing that inflation hit 5.2 per cent last month.This is up from August's rate of 4.7 per cent - and 3.2 per cent above the government's own inflation target.However, despite the rise analysts suggested that the price rises were nearing their peak.Falling inflation rates would also open the door for the Bank of England to impose further interest rate cuts.In turn, this would provide a stimulus to fading economic growth - as it would make many people's loan repayments cheaper and give them more money to spend on goods and services.Speaking to the BBC, Jonathan Loynes, chief European economist at Capital Economics, said: "CPI was once again rather worse than expected in September, but this will be the peak in inflation."The key issue now is just how far and fast it will drop back as the food and energy effects which have pushed it up so sharply over the last year finally fade or go into reverse."
Share this..
Related stories
FSA refuses call for Icelandic investment inquiry
The FSA (Financial Services Authority) has refused to sanction an enquiry into Treasury management advisors who were heavily involved in the investment of up to £1 billion in Icelandic banks. There is a feeling that these "unregulated" advisers should be called to account for their part in the disastrous investment which has cost the UK government and the UK taxpayer hundreds of millions of poun...
Read MoreUK salaries still under pressure
A report by the CBI will today confirm that many UK companies will maintain a pay freeze in 2010 with only 4% looking to increase their staff wages by more than inflation. The report will also show that 37% of companies surveyed have a recruitment freeze in place, down from a high of 61% earlier this year, but on the whole it looks as though in real terms we will see a reduction in the average UK...
Read MoreAre Microsoft and Rupert Murdoch set to work together?
While there is no doubt that the revamped and restyled Microsoft search engine Bing has made some inroads into the massive influence of Google in the online arena, in the overall picture it has had a minimal impact so far. Interestingly, and seemingly unconnected at the time, recent news that Rupert Murdoch was looking to withdraw his various news channels from the Google news system was largely i...
Read MoreGovernment Launches Funding for Lending Scheme
A new scheme known as Funding for Lending, which is set to encourage banks to lend more to small businesses and individuals, is being launched today, with the hope that it will help turn around the recession. The scheme will see the Bank of England make more money available to financial institutions at below market rates, which they can in turn pass on to consumers. All progress of the money th...
Read MoreWill Lord Mandelson extend the car scrappage scheme?
As expected, Lord Mandelson will come under greater and greater pressure to extend the UK government's car scrappage scheme which encourages older vehicles to be scrapped in exchange for discounts of up to £2000 on new and more efficient vehicles. As we have covered on numerous occasions, the government's multi-million pound offer has been taken up by many car owners up and down the country and l...
Read More