Good morning. Welcome to rolling coverage on the global economy, financial markets, euro area and business.
inflation As the economy broke out of the Covid-19 blockade, fuel, clothing and eating out costs skyrocketed, surpassing the Bank of England’s goals across the UK for the first time in almost two years.
UK Consumer Price Index It jumped to 2.1% in May, well above the 1.5% in April compared to a year ago, showing just-released data.
This is the highest CPI since July 2019, above the economist’s forecast of 1.8% and slightly above the BoE’s target of 2% inflation.
According to the National Bureau of Statistics transport Rising gasoline prices have hit drivers with pumps and made the biggest contribution to inflation last year.
Price increase clothing, Good recreations Games, recording media, etc. Food and drinkConsumed It also boosted living costs compared to May 2020, when the UK was blocked. In May alone, the CPI rose 0.6%.
However, food and non-alcoholic beverages have a negative impact on inflation, as prices fell this year, but rose a year ago, especially in bread and cereals.
Core inflation, excluding prices for food, energy and other volatile items, rose to 2.0% in the 12 months to May, according to the National Bureau of Statistics.
Data could fuel concerns that inflation would exceed the Bank of England’s 2% target longer than expected.
Last week, BoE Chief Economist Andy Haldan said Britain was in danger. “Quite punchy pressure on price” And the risk that wages and prices will startLeapfrog game “Leads to a spiral of wages and prices (Not on the scale of the 1970s and 80s).
Details to follow …
Inflation will be a top priority in Washington today. Federal Reserve Policy makers hold monetary policy meetings. Given the recent growth and rising prices, the Federal Open Market Committee can inform Wall Street (and beyond) that it is considering slowing down its bond purchase stimulus program.
The FOMC will also release new economic forecasts, and investors will consider an updated “dot plot” showing where members expect interest rates to be over time. This could lead to dates that could lead to top-notch rate hikes.
U.S. consumer price inflation hit a 13-year high of 5% last monthBut Fed Chair Jerome Powell may stick to his dovish view that inflationary pressures will be temporary rather than tenacious.
Kyle Roda of IG Description:
In the short term, it all depends on the Fed’s meetings and the central bank’s suggestions for future policies. The policy settings themselves do not change, that’s for sure. However, as the Fed publishes its economic forecasts and the well-known dot plot, there is a keen interest in whether Fed board members may begin to recognize the need for rate hikes and policy tightening.
The wording of the statement will probably remain dovish and will appear to dispel concerns about tapering and rate hikes. However, some within the Fed suggest that it is at least time to start a “think-think” tightening policy. If these points go down, it can affect the market price.
We are also getting new housing data from the UK and the US today.. The global stock market remains close to record highs, The FTSE 100 closed last night at a high of nearly 16 months...
Yesterday’s economic data was mixed-and UK unemployment rate declines It is balanced by a 1.3% decline in US retail sales, a decline in confidence in US homebuilders, and a 6.6% annual surge in US producer prices. It removed some of the heat from Wall Street yesterday.
- 7am BST: May UK Inflation Report
- 7 AM BST: UK Producer Price Inflation in May
- 8:00 am BST: May China’s capital investment, industrial production, retail sales
- 9:30 AM BST: April UK Home Price Index
- 12:00 pm BST: US Weekly Mortgage Application
- 1.30pm BST: US building permit and housing start in May
- 3:30 pm BST: EIA Weekly Oil Inventory
- 7:00 pm BST: Federal Reserve Board announces interest rate decisions and economic forecasts
- 7:30 pm BST: Federal Reserve Press Conference
As fuel and clothing prices rise, UK inflation jumps to 2.1%, above the Bank of England’s target.business
Source link As fuel and clothing prices rise, UK inflation jumps to 2.1%, above the Bank of England’s target.business