Inflation has affected the UK, US and Europe differently – here’s what this means for interest rates: The Bank of England’s governor has repeatedly warned that it will not cut UK interest rates any time soon, even with a recent sharp fall in consumer price inflation. Like central banks in the US and eurozone, the …
Price inflation is slowing, but here’s why it still feels like we’re in a cost of living crisis: Daisy Daisy/Shutterstock The latest UK consumer price index (CPI) data has been hailed as a win for prime minister Rishi Sunak’s aim to half inflation, announced earlier this year. Prices rose by 4.6% in October 2023, bringing …
Interest rates: if central banks don’t start cutting them soon, it could actually increase inflation: Another reason to be fearful. Golden Dayz What next for interest rates? The Bank of England’s Monetary Policy Committee (MPC) is widely expected to leave them unchanged when it meets on November 2, despite the fact that UK headline inflation …
Inflation: raising interest rates was never the right medicine – here’s why central bankers did it anyway: Pain, no gain? Bank of England Governor Andrew Bailey. IMF, CC BY-SA Inflation remains too high in the UK. The annual rate of consumer price inflation to September was 6.7%, the same as a month earlier. This is well …
Inflation: I’ve been analysing the Bank of England’s forecast over the past two years – here’s how they got it wrong: The Bank of England (BoE) has been strongly criticised for failing to predict the surge in inflation. Had it done so, it could have reacted more quickly and prevented inflation from rising as high …
Offshore wind: a perfect storm of inflation and policy uncertainty risks derailing the UK’s main hope for a low-carbon future: pauljrobinson/Shutterstock In what many have deemed a disaster, the UK government’s latest auction for renewable power – an annual attempt to incentivise private sector investment in a range of power sources – has failed to …
Central banks say interest rates will stay high but it’s unclear if this will be enough to curb inflation: Central bankers, policymakers and academics meet annually at Jackson Hole, Wyoming to discuss the economy. Sarah Hollemans/Shutterstock The US central bank, the Federal Reserve, has recently signalled that it will keep interest rates high for as …
Zimbabwe heads to the polls amid high inflation, a slumping currency and a cost of living crisis: Inflation continues to defy Zimbabwe central bank efforts Getty images Zimbabwe is facing a host of pressing challenges that voters dearly want the next president to address. Persistently high inflation, elevated interest rates, and a slumping and volatile …
UK interest rates: crashing the economy is no way to bring down inflation: It won't hurt a bit. Kevin CC The Bank of England (BoE) has raised interest rates once again to 5.25%, mirroring similar moves by the Federal Reserve and the European Central Bank. The fact that the UK is still suffering from high …
Inflation may be coming down but its unequal effects can still have a big impact on wellbeing: Different inflation strokes for different folks. pathdoc/Shutterstock Inflation is coming down across developed economies, although not as much as governments and central banks would like. The latest figures tracking UK inflation show prices rose by 7.3% in the …
Interest rate hikes are not the only tool to fight UK inflation – here’s what the government should do: Over the past year, interest rates have been rising rapidly around the world. The post-COVID economic recovery and Russia’s invasion of Ukraine caused inflation to reach 10% or more in many countries. Central banks in the …
Why the Bank of England’s interest rate hikes aren’t slowing inflation enough and what that means for mortgages: Consumer price inflation stuck at 8.7% in May, defying expectations of a slowdown and making a further rise in UK interest rates inevitable. The May figures came out the day before the Bank of England’s Monetary Policy …
Inflation: why prices look likely to stay high in the UK and Ireland, and what that means for mortgages: Counting the cost of rising prices. Drazen Zigic/Shutterstock The European Central Bank (ECB) has raised its three key interest rates by 0.25% to their highest levels in more than 20 years. The ECB’s “main refinancing rate” …
Price caps on groceries are not the answer to the UK’s inflation problem: Prime Minister Rishi Sunak is proposing a form of price caps on basic food items like milk and bread to slow their price increases. This is likely to set maximum prices which sellers are not allowed to exceed, though it appears it …
Why UK inflation is so high compared to EU and US and what to do about it: Price rises are slowing but inflation remains persistent. Ink Drop/Shutterstock Britain has a bigger inflation problem than either the US or the eurozone, according to Bank of England policymaker Catherine Mann. The latest official UK inflation figures show …
Price inflation: five ways stronger UK supply chains can help reduce rising food costs: Denis Belitsky/Shutterstock Annual price inflation has recently fallen below double digits, but food costs are still rising rapidly. Official UK figures show food prices rose by 19.1% in the year to April 2023. To prevent further increases, the UK needs to …
Four reasons inflation will stay stubbornly high for some time: Climbing inflation. Sergey Tinyakov/Shutterstock Price inflation is starting to fall in many countries but it still remains way above the typical 2% target of most major economies. In the UK, inflation has been above target since August 2021 and in double digits since August 2022. …
Rising inflation will continue to cause political headaches for the government, but also for the Bank of England: Rising prices. Ink Drop/Shutterstock The Bank of England raised its main interest rate for the eleventh time in a row to 4.25% at its March meeting. At its previous meeting in February the Bank was optimistic about …