LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • India
    • Economy
    • Politics
    • Markets
  • World
    • Economy
    • Politics
    • Markets
  • Companies
    • Auto
    • Banking & Financial Services
    • Pharma
    • Energy
    • Infrastructure
    • Media
    • IT
    • Telecom
    • Consumer Products
    • Aviation
    • FMCG
  • Personal Finance
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
  • Mutual Funds
  • Technology
  • Automobile
    • Cars
    • Bikes
  • Small Business
    • SME
    • Startups
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
    • AUTHORS
Home » World News

British inflation at 5-1/2-year high in September, rate hike on track

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Updated: Tue, Oct 17, 2017
03:07 pm
Reuters
RELATED NEWS
GST compensation due for all states, not just for some: FM Nirmala Sitharaman GST compensation due for all states, not just for some: FM Nirmala Sitharaman
Mobile industry seeks GST rate cut for cell phones up to Rs 1,200 Mobile industry seeks GST rate cut for cell phones up to Rs 1,200
RBI repo rate cuts: What bank is expected to do in the remainder of FY20 RBI repo rate cuts: What bank is expected to do in the remainder of FY20
RBI surprises by keeping repo rate unchanged, slashes growth forecast; read experts' views RBI surprises by keeping repo rate unchanged, slashes growth forecast; read experts' views
Down, down they go: Emerging central banks deliver more rate cuts Down, down they go: Emerging central banks deliver more rate cuts

British inflation rose to its highest level in more than five years in September, official data showed on Tuesday, adding to the likelihood that the Bank of England will raise interest rates next month.

Consumer prices last month were 3.0 percent higher than a year ago, the Office for National Statistics said, matching economists` average expectation in a Reuters poll and marking the fastest rise since April 2012.

Rising inflation - driven largely by the pound`s fall since last year`s vote to leave the European Union - has squeezed household incomes, causing broader economic growth to slow.

Wages have failed to keep pace with the rising cost of living.

Nonetheless, last month the BoE said it expected to raise interest rates in the coming months if the economy and price pressures continued to strengthen.

"Today`s release has all but rubber stamped a rate hike from the central bank at their next meeting," said David Cheetham, chief market analyst at retail forex broker XTB.

Sterling dipped initially against the dollar after the data but soon recovered, while stocks were mostly unchanged.

A majority of economists polled by Reuters think the BoE will move at its next meeting in November - but most also said it would be a mistake to act now. 

New Bank of England Deputy Governor Dave Ramsden said on Tuesday that domestic price pressures remain below the kind of levels that would pose a threat to the central bank`s inflation target. This implies the inflation is imported.

Last month the BoE said it expected inflation to exceed 3 percent in October, higher than it had forecast just a month before, when it predicted it would take more than three years for inflation to return to its 2 percent target.

Although much of the effect of the pound`s decline has already been felt by consumers, some retailers are only now starting to pass on price rises.

On Monday, furniture retailer IKEA Group said it had increased prices in Britain by 3 percent to compensate for the slump in sterling.

The pound has fallen around 12 percent since the referendum against a trade-weighted basket of major currencies such as the U.S. dollar and the euro.

Food and transport costs helped to push up inflation in September, the ONS said.

Core consumer price inflation - which strips out changes in the typically volatile prices of energy, food, alcohol and tobacco - was steady at 2.7 percent, as expected in the Reuters poll.

The ONS also released figures for house prices in August, which showed an 5.0 percent annual rise across the United Kingdom as a whole compared with a 4.5 percent increase in July. Prices in London alone rose 2.6 percent.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

TAGS:
Economy
Next Article

NEXT STORY: U.S. exchanges set for highest number of Asian IPOs since 2010

RELATED NEWS
GST compensation due for all states, not just for some: FM Nirmala Sitharaman GST compensation due for all states, not just for some: FM Nirmala Sitharaman
Mobile industry seeks GST rate cut for cell phones up to Rs 1,200 Mobile industry seeks GST rate cut for cell phones up to Rs 1,200
RBI repo rate cuts: What bank is expected to do in the remainder of FY20 RBI repo rate cuts: What bank is expected to do in the remainder of FY20
RBI surprises by keeping repo rate unchanged, slashes growth forecast; read experts' views RBI surprises by keeping repo rate unchanged, slashes growth forecast; read experts' views
Down, down they go: Emerging central banks deliver more rate cuts Down, down they go: Emerging central banks deliver more rate cuts

LATEST NEWS

Rs 2000 notes to be banned or not? All doubts cleared! Check latest news, answer directly from Modi government

Vroom! Amazing motorcycle for road safety, patrolling now with Gurugram Police - Scintillating pics

Bank Savings Account vs Liquid mutual funds: Which one is better for you and why? Check what experts say

Make money for your children's education! Top 5 mutual fund plans to empower kids

Another reason to buy ISUZU mu-X? Unbeatable! 8-year/200,000 kms warranty is here

First time ever in auto sector? Honda comes up with 10 year any time warranty program - What it is and how it works

Ujjivan Bank share price skyrockets! Experts dub it Multibagger stock, say it is a money-spinner for investors going forward

PF Withdrawal: Taken money out of Provident Fund Account? Do this to pare loss to your retirement fund

No gratuity payment for services below 5 years! New rule coming soon; Check your eligibility

80% of Rs1,500 crore NCD issue of L&T Finance is reserved for HNIs and retail investors: Dinanath Dubhashi, MD & CEO

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO Pension
  • Income Tax Return
  • Hyundai Venue
  • NPA
  • Home Loan

Trending Topics

  • Income Tax
  • 7th Pay Commission
  • Reserve Bank of India
  • PACL Refund Claim Online
  • GST
  • income Tax Calculator

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved