No Result
View All Result
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions
Smart Investment Today
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
Smart Investment Today
No Result
View All Result
Home Investing

UK Inflation Holds Steady at 2.2%, Core Inflation Rises

by
September 18, 2024
in Investing
0
UK Inflation Holds Steady at 2.2%, Core Inflation Rises
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Annual inflation in the UK remained unchanged at 2.2% in August, defying forecasts of a slight rise to 2.3%, according to official figures released ahead of the Bank of England’s interest rate decision.

Despite the stability in headline consumer prices, core inflation—which excludes volatile elements like food and energy—accelerated from 3.3% to 3.6%, exceeding economists’ expectations of 3.5%.

The Office for National Statistics (ONS) highlighted that rising airfares, which jumped by 11.9% year-on-year, were the primary driver of inflation in August. Meanwhile, a decline in fuel prices by 3.4% helped keep overall inflation steady. Prices in restaurants and hotels rose at the lowest rate in three years, increasing by 4.4%.

The figures come ahead of Thursday’s meeting of the Bank of England’s Monetary Policy Committee (MPC), where policymakers are expected to maintain the base interest rate at 5%. The Bank, which targets an inflation rate of 2%, made its first interest rate cut in four years this summer and is expected to make gradual cuts moving forward. Markets anticipate one more reduction in 2024, bringing the base rate down to 4.75%.

While overall inflation has stabilised, the rise in core and services inflation—from 5.2% to 5.6%—could concern more hawkish members of the MPC. Goods prices, on the other hand, fell by 0.9% over the year, remaining in deflationary territory.

Economists predict that rising energy prices from October will contribute to further inflationary pressures throughout the year, although wage growth, a previous driver of inflation, has started to ease.

Darren Jones, the government’s Chief Secretary to the Treasury, acknowledged the ongoing strain on households despite the levelling off of inflation: “Years of sky-high inflation have taken their toll and prices are still much higher than four years ago. While more manageable inflation is welcome, we know that millions of families across Britain are struggling, which is why we are determined to fix the foundations of our economy so we can rebuild Britain and make every part of the country better off.”

In response to the figures, Ruth Gregory, deputy chief UK economist at Capital Economics, suggested that the uptick in services inflation could rule out an interest rate cut in September: “A pause on interest rate cuts was already expected tomorrow, and today’s release cements that view. We continue to assume the next 25 basis point rate interest rate cut will take place in November.”

Yael Selfin, chief economist at KPMG, also argued that the rise in services inflation “likely closes the door on an interest rate cut tomorrow,” reinforcing the expectation that the MPC will keep rates steady for now.

Read more:
UK Inflation Holds Steady at 2.2%, Core Inflation Rises

Previous Post

Labour Ministers Ease Up on Enforcing Three-Day Office Week for Civil Servants

Next Post

UK Retailers Enjoy 40% Boost in Summer Sales as Price Cuts Drive Demand

Next Post
UK Retailers Enjoy 40% Boost in Summer Sales as Price Cuts Drive Demand

UK Retailers Enjoy 40% Boost in Summer Sales as Price Cuts Drive Demand

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • Trending
    • Comments
    • Latest

    Gold Prices Rise as the Dollar Slowly Dies

    May 25, 2024

    Richard Murphy, The Bank of England, And MMT Confusion

    March 15, 2025

    We Can’t Fix International Organizations like the WTO. Abolish Them.

    March 15, 2025

    Free Markets Promote Peaceful Cooperation and Racial Harmony

    March 15, 2025
    Rachel Reeves hints at fresh tax hikes amid fears of £40bn Budget black hole

    Rachel Reeves hints at fresh tax hikes amid fears of £40bn Budget black hole

    0

    Ana-Maria Coaching Marks Milestone with New Book Release

    0

    The Consequences of California’s New Minimum Wage Law

    0

    Memorial Day

    0
    Rachel Reeves hints at fresh tax hikes amid fears of £40bn Budget black hole

    Rachel Reeves hints at fresh tax hikes amid fears of £40bn Budget black hole

    July 4, 2025

    Historic Albion House Relaunches as The White Star Line Hotel Under Local Stewardship

    July 4, 2025
    Wimbledon winners to pay up to £1.3m in tax as HMRC claims £17m from prize pot

    Wimbledon winners to pay up to £1.3m in tax as HMRC claims £17m from prize pot

    July 4, 2025
    Bank Capital Standards

    Bank Capital Standards

    July 3, 2025

    Recent News

    Rachel Reeves hints at fresh tax hikes amid fears of £40bn Budget black hole

    Rachel Reeves hints at fresh tax hikes amid fears of £40bn Budget black hole

    July 4, 2025

    Historic Albion House Relaunches as The White Star Line Hotel Under Local Stewardship

    July 4, 2025
    Wimbledon winners to pay up to £1.3m in tax as HMRC claims £17m from prize pot

    Wimbledon winners to pay up to £1.3m in tax as HMRC claims £17m from prize pot

    July 4, 2025
    Bank Capital Standards

    Bank Capital Standards

    July 3, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 smartinvestmenttoday.com | All Rights Reserved

    No Result
    View All Result
    • News
    • Economy
    • Editor’s Pick
    • Investing
    • Stock

    Copyright © 2025 smartinvestmenttoday.com | All Rights Reserved