© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - The Return of Inflation
Posted 15th September 2015

The Return of Inflation

The key figure within the recent inflation data was not the headline of the Consumer Price Index (CPI) rate, but instead, the surprise jump in core inflation was an eye opener this time around.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

The Return of Inflation

The Return of Inflation

Image

The key figure within the recent inflation data was not the headline of the Consumer Price Index (CPI) rate, but instead, the surprise jump in core inflation was an eye opener this time around.

This figure, which strips out volatile components like food and energy, jumped sharply to 1.2%, confounding expectations for it to remain flat at 0.8%. Surprisingly, the largest contribution to the increase came from clothing and footwear, with retailers discounting far less heavily than at the same time last year.

The rise in the core figure suggests that underlying inflationary pressures could be building in the economy, and is possibly the clearest indication yet that the Bank of England might have to raise interest rates sooner rather than later. Currency markets seem to agree, sterling has jumped around a cent against the dollar, and almost a cent against the euro immediately after the figures were released.

Headline CPI is only 0.1%, largely driven by a factor outside of the central banks’ control, namely the oil price. Recent further falls mean that it could depress the headline rate of inflation well into next year. However, policymakers know this is ultimately a temporary factor, and as such are increasingly looking at the core measure when deciding whether higher interest rates are appropriate.

These numbers will increase speculation over a rate rise later this year. It will take some time for more MPC members to be persuaded to vote for higher rates and therefore, early 2016 could be more likely. Thereafter the path of rate rises is likely to be a slow incline, and it would not be a surprise to see them stuck on 0.75% for some time.

Categories: Finance


You Might Also Like
Read Full PostRead - Eye Icon
Ashurst Advise During Omers’s acquisition of Environmental Resources Management
Legal
20/08/2015Ashurst Advise During Omers’s acquisition of Environmental Resources Management

Ashurst Advise During Omers's acquisition of Environmental Resources Management

Read Full PostRead - Eye Icon
A Handy Guide to Choosing the Ideal Personal Injury Lawyer
News
26/10/2023A Handy Guide to Choosing the Ideal Personal Injury Lawyer

You may walk around thinking that you may never need a lawyer, as you pride yourself on being the safest person on planet Earth. You may be someone who’s following all the rules and ensuring your actions don’t cause harm to you or those around you. Unfortu

Read Full PostRead - Eye Icon
Challenging Blood Test Evidence in OWI/DUI Cases: Legal Strategies and Implications
News
29/08/2023Challenging Blood Test Evidence in OWI/DUI Cases: Legal Strategies and Implications

OWI or DUI blood tests are almost entirely based on a blood test as evidence. Such a test determines the presence of alcohol or drugs in the driver’s system. A blood test is one of the most accurate methods of measuring a person’s blood alcohol level (BAC)

Read Full PostRead - Eye Icon
How Digital Tech Is Impacting the Charity Sector
Corporate Social Responsibility
29/03/2023How Digital Tech Is Impacting the Charity Sector

Over the last three years, charities have been forced to drastically rethink their way of working and the technology they use in order to stay afloat. Through the culmination of the COVID-19 pandemic and now the cost-of-living crisis, 82% of organisations have

Read Full PostRead - Eye Icon
The Science Law Firm
Legal
18/07/2022The Science Law Firm

Since 1983, Bell Legal Group has been practicing the art of law and using science to find the truth. It is dedicated to helping people get through some of the most complex, difficult life tragedies, and it has become the go-to law firm. We take a look at how B

Read Full PostRead - Eye Icon
Long-Term Financing for Business Expansion
News
31/08/2023Long-Term Financing for Business Expansion

When growing a business, having the right financial resources is essential. Long-term financing is like having a steady ship to sail the vast seas of expansion. One such option that can provide stability and flexibility is a Term Loan. The article will dive de

Read Full PostRead - Eye Icon
Initiative & Finance Acquisition of Minority Stake in FAK
Finance
23/07/2015Initiative & Finance Acquisition of Minority Stake in FAK

Initiative & Finance Acquisition of Minority Stake in FAK

Read Full PostRead - Eye Icon
The Most Common Questions On Personal Injury Claims Answered
Legal
24/03/2022The Most Common Questions On Personal Injury Claims Answered

For most of us, legal procedures and processes aren’t everyday occurrences: we see more of a courtroom through our TVs, as per Collider.com, than we ever do in person. Some of the most common circumstances in which people find themselves actually represented

Read Full PostRead - Eye Icon
Health and Wealth
Innovation
04/03/2021Health and Wealth

The role of pharmacy benefit managers often goes uncredited within the USA health system. As a third party, acting outside of integrated health systems, it’s easy to see why many organizations can’t employ one focused on their business. This changed thanks



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow