UK inflation shows largest fall for over a decade
The announcement of inflation in December saw many analysts disappointed with the 3.1% rate which was a fall from the previous month's 4.1%. Despite the fact that this drop was the largest for over a decade many experts had expected the rate of inflation for December 2008 to have fallen as low as 2.7%. So why was the rate slightly higher than many expected?
It appears as though the Russian Ukraine gas dispute, which caused significant price spike in the European gas market, has delayed an expected reduction in UK energy costs until later in the year. If the Ukraine dispute had not occurred there is every chance that inflation would be well under the 3% level.
When you consider that inflation was heading well in excess of 5% only a few months ago a sharp reduction to 3.1% should assist many of the UK population in controlling the cost of living. However the cost of energy is still a significant problem for many and the longer the Russian Ukraine situation drags on the more chance that prices will rise rather than actually fall. This situation has played into the hands of UK energy companies who had been under significant pressure to reduce their charges in the latter half of 2008.
Share this..
Related stories
UK banks set to strangle UK credit lines
Despite the fact that many banks in the UK have been reducing their credit lines to customers and businesses in the short term, it would seem that this trend will continue for the foreseeable future. UK banks are fully expected to tighten their lending criteria for mortgages, loans and credit cards because of "an increase in money market costs". So how will this impact upon the UK economy, UK cons...
Read MoreAre our MPs being treated differently from taxpayers?
As news emerges that 27 MPs are under investigation by the tax authorities, with one MP potentially under investigation by the police, there are concerns that UK MPs are being treated differently from everyday taxpayers. A number of cases of alleged fraudulent activity have already been clarified and the very fact that Parliament has asked a number of MPs to repay significant amounts of money is a...
Read MoreBegbies Traynor forecast surge in UK business failures
Insolvency experts Begbies Traynor have today issued a statement suggesting that the UK business arena will suffer an enormous number of failures in 2010. The company believes that around 130,000 businesses in the UK are currently showing "material signs of distress" and we will see a surge in business failures even though many people believe the recession is at an end. So what is happening?
...
The power of deflation
At the moment inflation is around about 1% (as measured by the retail price index) which is well under the government's target of 2%. On the surface this may sound like good news, meaning that prices are increasing at a lower rate than expected, it could be the precursor to a serious bout of deflation which could literally push the UK economy into a depression and have serious implications for the...
Read MoreRail companies not giving enough info on refunds
21/12/2015 Consumer watchdog Which? has claimed that rail companies are not giving customers enough information about refunds they can receive for delays. Which? has now called for action from the Office of Rail and Road (OOR) to investigate into train operators after it found that only a small percentage of those entitled to refunds receive them or are informed how to process a claim. T...
Read More