UK Inflation Eases In December

17 January, 2018, 02:03 | Author: Elaine Woods
  • December CPI inflation over 5.2% dashing hopes of RBI rate

The inflation rate in Britain dipped in December for the first time in six months, partly due to a fall in the price of games and toys in the run-up to Christmas, official figures showed Tuesday.

The ticking down of inflation levels will technically mean that pressure should be easing on the squeezed United Kingdom consumer, who has had to struggle against rising prices and falling wages in real terms since the pound dropped over 1000 points, after the Brexit referendum, in 2016.

United Kingdom inflation figures released this morning were within expectations.

Despite December's fall in CPI, everyday prices still rose more rapidly across the United Kingdom as a whole in 2017 than in France, Germany and the wider European Union. Last week, the price of oil rose to $70 a barrel, its highest level since December 2014.

Core inflation, also dropped from 12.20 percent to 12.10 percent giving room to the Central Bank of Nigeria to make a move on interest rates at its next meeting next week, if it holds. ONS said in it's statement.

Aditi Nayar, principal economist at ICRA Ltd, said the divergence in the sequential trend in the CPI and WPI inflation in December was driven by food inflation, and the impact of the higher housing inflation, which was limited to CPI.

Zuma to set up commission to probe influence-peddling
Zuma's surprise announcement was widely interpreted to have saved him from being recalled this week. Zuma said the commission would be headed by Deputy Chief Justice Raymond Mnyamezeli Mlungisi Zondo.

Turkey Summons Iranian, Russian Envoys over Attacks on Syria's Idlib
The Russian Defense Ministry denied any of its aircraft were lost, but it acknowledged that two troops died in the shelling. Turkish Foreign Minister Mevlut Cavusoglu said this could torpedo talks aimed at ending the war.

Man United to raise price of Sevilla fans' tickets in price war
Sevilla are charging United supporters £ 89 for a ticket in the uncovered away end at the Estadio Ramón Sánchez Pizjuán. The £35 difference will be refunded prior to the game taking place.

"Such a scenario could represent a real challenge to United Kingdom consumers, as with real GDP growth somewhat muted and no wage hike pressures, the bank could look through rising commodity prices as short-term, creating the risk of stagflation for savers and investors".

Hargreaves Lansdown senior economist Ben Brettell said apart from the "Brexit noise", the UK's economic situation is in keeping with the majority of the developed world, with an ageing demographic and disruptive technologies causing price pressure and limiting the BoE's incentive to hike rates.

As sterling has now recovered two thirds of its value in the aftermath of Brexit, Brittain expects inflation to fall back to two per cent in the coming months.

If inflation does remain stubbornly beyond 2%, Brittain said the Bank of England may be forced to play its trump card of increasing interest rates to help bring it back in line.

The evidence for slow of the United Kingdom consumer spending raises after the official data in 2017 showed the poorest household spending growth in five years against the backdrop of high inflation and Brexit's concerns over business investment.

Maike Currie, investment director for personal investing at Fidelity International, said: "While price pressures may have eased slightly, this will be cold comfort to cash-strapped consumers who are still suffering a pay cut in real terms as inflation continues to outpace wage growth (including bonuses) at around 2.5%".



Serbia withdraws from Kosovo talks after Ivanovic murder
Kosovo declared independence in 2008 and has been recognized by 115 countries, though not by Serbia nor its ally, Russia. He vowed that officials were "committed to solve this case as soon as possible and bring the perpetrators to justice".

Tourists flock to see Philippines volcano 'fireworks' as locals flee
Two similar "phreatic" eruptions occurred at the volcano in central Albay province on Sunday, unleashing more ash. Mayon is in coconut-growing Albay province, about 340 kilometres (210 miles) southeast of Manila .

Blazing tanker sinks with 'no hope' for crew
Mohammad Rastad, spokesman for an Iranian rescue team, said there was "no hope" for the recovery of any of the bodies. The Iranian oil tanker went up in flames after it collided with a Chinese freighter in the East China Sea last week.

NFC Divisional Playoffs: Three things to watch in Saints-Vikings
Minnesota dominated the game - 31-15 first downs, 475-257 in total yards - but finished minus-4 in turnovers and lost in overtime. The Vikings' elite targets at receiver, Adam Thielen and Stefon Diggs, make their passing attack that much tougher to defend.

'S---hole' projected onto Trump Hotel in DC
The White House initially did not deny that Trump made the remarks, but Trump later disputed the reports on Twitter. The video projection was the work of artist Robin Bell , the founder of video projection company Bell Visuals .

Pochettino provides an update on crocked Tottenham ace Danny Rose
Alli has been a key player for Mauricio Pochettino since arriving from MK Dons in 2015, scoring 41 goals in 122 games. But according to the Times , a new deal that Tottenham have offered the Belgium star has been rejected.

Know About 1st Northeast Indian Judge to Become Chief Justice of India
The SCBA said this would remedy the issue raised by the senior judges that cases of importance were not being assigned to them. Some legal luminaries also said the turn of events had raised a question mark about the credibility of the judicial system.

Rebekah Shelton dead: Big Brother's Rodrigo Lopes dies
While a third wrote: 'My prayers and thoughts to Rebekah and her entire family' . "It was a big step to go full time as a woman". Of transitioning, she said: "It's hard, nobody will choose to go through the hardest path".

Bitcoin Rises in South Korea Despite Reports of Gov't Intervention
On the same day, financial authorities inspected six local banks that offered virtual accounts for corporate customers. Ethereum , the second-largest cryptocurrency by market cap saw its price drop by 5%.

Wal-Mart Raises Hourly Wage to $11 in Wake of Tax Overhaul
Walmart didn't explain exactly how the sliding scale will work, but said the total value of the bonuses will be $400 million . Walmart plans to start paying its one million United States workers at least $11 an hour and give them a one-off cash bonus.