Some growth but inflation bites
It’s been good to see some economic growth with an unexpected 0.3% figure in November. Services and production rose and construction fell. The results at least counter some of the previous slippage but won’t be giving a great annualised figure regardless – but all helping.
Likewise, whilst we read a colossal 700,000 graduates are unemployed,...
‘Unexpected’ inflation really wasn’t
So we have been greeted with an ‘unexpected’ 3.6% inflation and unemployment rising at the same time that vacancies are diminishing (the lowest since Covid). Anyone reading these eshots and realising the increases in costs on employers would not have seen these two things as ‘unexpected’ at all.
Indeed, perhaps the Government should subscribe to...
Inflation remains stubborn
So, inflation remain stubbornly high at 3.4% despite people not feeling especially confident about spending. So much of our outgoings now go towards ‘tax’ of course and we don’t have any control over that (but government does)… So businesses and organisations are obliged to increase their prices to cover increased costs (especially employment but...
What does US inflation mean for the UK?
Inflation in the United States rose more than expected last month to 3% - exactly the same rate as here in the UK, funnily enough!
‘Unpredictable’ best describes the start of Donald Trump’s presidency as his proposed tariffs on imported goods look likely to push up prices for American consumers.
The rate of inflation ‘over there’...
Are Cash ISAs under threat from the Chancellor?
Regular readers of this column will know we are not entirely (or certainly not universally) in favour of Cash ISAs simply because the balance of interest rates versus inflation means you can effectively be ‘losing’ money by having many thousands sat in an ISA ‘doing nothing’ as well as letting inflation eat it away.
Saving...
Is ‘stagflation’ looming and what can you do about it?
Interest rates have been cut to 4.5% as expected but with low economic growth, higher unemployment and price rises, some analysts fear we are heading for a period of ‘stagflation’.
First coined in the 1960s, the term simply means economic stagnation on the one hand and inflation on the other, which is neither beneficial to...
Portents and opportunities for 2025
Inflation drops and Budget looms
So UK inflation surprised to the downside – good news. This should lead the Bank of England to keep its promise to cut interest rates. The only fly in the ointment is what government bonds tell us? They’re worried globally but specifically in the UK about the Budget and probable extra borrowing (via these...
Interest rates remain static – will this affect you?
Interest rates are set to remain at 5% until after the Government’s Budget at the end of October.
The Bank of England confirmed on Thursday (September 19) the rate would remain static, with inflation remaining stubbornly at 2.2% and above the ‘magic’ 2% target.
At its latest meeting, the bank’s Monetary Policy Committee (MPC) voted by...