Retail inflation eases to 5.07 percent in January

Source Bloomberg

United Kingdom inflation remained at 3% in January, the same level as in December, as reported by the Office for National Statistics, ONS.

The dollar .DXY rallied against a basket of currencies.

However, the fact that the central bank did not raise the repo rate in the face of hardening inflation as recommended by one of the six monetary policy committee (MPC) members is being considered as an attempt to aid in economic recovery. Economist said the robust trend in factory output augured well for overall growth.

"The worry of the markets is not that inflation is becoming a big problem, .it is that the Fed is now forced to play catch up at the same time they are shrinking their balance sheet", said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

It stated that the rural index also rose by 0.77 per cent in January 2018, up by 0.23 per cent when compared with 0.54 per cent in December 2017.

Downward pressures on prices over the past year include motor fuels, which rose by less than they did a year ago. Thereafter, CPI readings could touch 6 percent by the summer. "The high 16.5 per cent growth of consumer non-durables in December 2017 was augmented to a considerable extent by the sharp 88.4 per cent expansion in output of digestive enzymes and antacids, with a weight of just 0.2 per cent in the IIP", Aditi Nayar, Principal Economist, ICRA said.

Over the same period, inflation, as measured by CPI was 2.7 per cent and was four per cent as measured by RPI. The Fed tracks a different index, the personal consumption expenditures price index excluding food and energy, which has consistently undershot the central bank's 2 percent target since mid-2012.

Economists said the stubbornly high inflation in January meant United Kingdom households were faced in the near-term with falling living standards and rising mortgage bills.

Digestive enzymes and antacids, which have a 0.22 per cent in IIP, continued to be the top contributors for the IIP growth in December, followed by cement, electricity, diesel and two-wheelers.

Trump's VP Mike Pence 'thinks Jesus tells him to say things'
She went on to discuss the vice president's fervent religious beliefs and claimed that he thinks he's got a direct line to Jesus. Meanwhile, Omarosa , the original CBB target, continued talking about her tumultuous time in the White House .

UK CPI unexpectedly holds at 3.0 pct in January * BoE aiming to return CPI to 2 pct target in 2 years * Manufacturers facing less pressure from raw material costs * Core inflation and cost of services picks up (Adds reaction from economists and markets) By David Milliken and Andy Bruce LONDON, Feb 13 (Reuters) - British inflation unexpectedly held close to its highest level in almost six years in January, highlighting the challenge facing the Bank of England and reinforcing expectations of a rise in interest rates in May. Price pressures are also seen being fanned by fiscal stimulus in the form of a $1.5 trillion tax cut package and increased government spending.

ONS senior statistician James Tucker said: "Headline inflation was unchanged with petrol prices rising by less than this time past year".

Capital goods shot up 16.4% in December compared with a 6.2% contraction in the year-ago period.

While retail inflation was 5.21 per cent in December 2017, the Index of Industrial Production (IIP) had grown at an impressive 8.8 per cent in November.

"Apart from oil prices, monsoons will be the key factor for inflation".

If prices come in 1.9 or 2 percent higher, "that will then, I think, kick in perhaps another episode of what we saw last week", Curran added.

The core CPI was boosted by rising rents.

Prices of new motor vehicles slipped last month and the costs of recreation, communication and alcohol were unchanged.

Related News:



Most liked

Prince Henrik, husband of Denmark's Queen Margrethe II, dies
His eldest son, Crown Prince Frederik , left the Winter Olympics and returned to Denmark to be by his father's side on February 9. Denmark's Prince Henrik , the husband of Queen Margrethe II, died on late Tuesday night, the palace announced early Wednesday.

Updated WWE Elimination Chamber Card
Bray Wyatt , "Woken" Matt Hardy , and Apollo Crews (with Titus O'Neil) by pinning Bray Wyatt following a double team powerbomb. Each man was hellbent on making it to the Elimination Chamber , shining in a moment of glory as chaos reigned supreme.

Luke Wilson, pro golfer Bill Haas injured in fatal vehicle crash
The 35-year-old pro was the passenger in a Ferrari that reportedly crashed into an oncoming vehicle, rolling the Ferrari over. Professional golfer and Greer native Bill Haas is expected to survive after a deadly crash in a Los Angeles neighborhood.

Google to bring Allo's Smart Reply feature to third party apps
There's also " Don't miss the important stuff " to ensure the user does get important messages even when the phone is on silent. Tap through to one of the stories and tap through images, videos and text, all in an AMP-enabled format.

YouTube Stars Forced To Hide From Deranged Fan In Deadly Home Invasion!
The officers found Giles backing out of the driveway in his Lincoln sedan with a New Mexico license plate and ordered him to stop. Detectives said it was clear that Giles " developed a fondness of Turney yet resented Free for his lifestyle and success".

US forces 'killed scores of Russian fighters in Syria while defending position'
A Cossack organization in Kaliningrad posted on social media that one of its members had also been killed. Air Force general in the Middle East, said he would not speculate on the forces.

Driver recalls finding stabbing victim along California road
The rural road that some commuters use to bypass Interstate 580 and the Altamont Pass remained closed into the afternoon. Ray Kelly , but have not detailed what led up to the deadly stabbing . "Otherwise, we wouldn't know what happened".

Google shipped 3.9 million Pixel phones previous year , IDC says
However, Google CEO Sundar Pichai and Osterloh have shown how important the hardware business is for the company. Google seems to have improved its supply line issues with the Pixel 2 , which has consistently been in stock.

SNAP program would be replaced with meal kits, according to Trump proposal
The White House is making the case that thedelivery service would save taxpayers about $129 billion over 10 years. SNAP is an efficient program; as the Administration noted, its integrity should be protected.

Boris Johnson calls for safe return of Rohingya refugees to Myanmar
Media captionMyanmar must find a safe and dignified way for Rohingya Muslims to return, Foreign Secretary Boris Johnson has said. The military's version of events is contradicted by accounts given separately by Rakhine Buddhist and Rohingya Muslim witnesses.

Rahul sounds hypocritical when making claims about Andhra Pradesh: BJP
Is it believable?"He said Polavaram was to be completed by 2019 and as per 2014-15 estimates Rs 54,000 crore was needed". The TD said that the Cen-tre had released only Rs 90 crore in four years.

How Have Institutional Investors Been Trading Digital Realty Trust, Inc. (DLR)?
Teachers Ins Annuity Association Of America stated it has 178,281 shares or 0.09% of all its holdings. (NYSE:NEE) is 11.402200. Joel Isaacson And Comm Ltd Co holds 0.19% of its portfolio in Federal Realty Investment Trust (NYSE:FRT) for 8,385 shares.

Virginia Tech wants better showing against Wahoos
If for no other reason than they came close, but never finished any game in the last two months with fewer points. It was a different Virginia Tech defense from the one that UVa tore up on January 3 for 78 points - an ACC high.

Google Glitch Shows Nick Foles Owning New England Patriots
John Bridges, the managing editor of the paper, tweeted out a photo of the ad, as did sports reporter Brian Davis. Foles is a 2007 graduate of Westlake High School in Austin.

TMO frustration shouldn't mask more strides by Wales at Twickenham
Two years ago at Twickenham his side had been denied a potentially match-winning try by an errant flag from a touch judge. Not that it was exactly required.