UK inflation falls sharply to 2.5% UK inflation drops to one-year low of 2.5%; oil hits three-year high - as it happened Record Low Inflation Eases Rate Hike Fears: 5 British Picks Surprise inflation fall 'good news for consumers but a headache for Bank' UK inflation falls to lowest in a year

UK inflation falls sharply to 2.5%

Keep abreast of significant corporate, financial and political developments around the world. Some of the technologies behind these assets could make financial market infrastructures, such as payment systems, more efficient. The MPC’s approach has normally been to look through short-term fluctuations and focus on the longer term influences on the inflation outlook. Guardian News and Media Limited or its affiliated companies.

This London-based company has a Zacks Rank #1. This Gillingham-based company has a Zacks Rank #2. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. By using this website you consent to our use of cookies. The currency markets reacted a little more strongly - marking the pound down by about a cent against both the euro and the dollar.

UK inflation drops to one-year low of 2.5%; oil hits three-year high - as it happened

Surprise drop in UK inflation takes pressure off the Bank of England to raise interest rates in May

Looking at reactions to today's CPI, fair to say most economists think the BoE will press on with a May rate hike, despite weaker-than-expected inflation and so-so wage growth. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. Pound Sterling Plummets, IMF Raises Growth Projections Further, U.K.’s industrial production advanced only 0.1% in February from January, while manufacturing output fell by 0.2% in February.

The expected earnings growth rate for the current year is 11.04%. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. This site uses cookies. The reason is simple: the Bank of England appears determined to raise the official rate next month to 0.75% - not so much to tame this relatively mild inflation, as to normalise interest rates. Sterling tumbled below $1.42 and British government bond prices shot up after official data on Wednesday showed annual consumer price inflation fell to 2.5 percent from 2.7 percent in February.

Record Low Inflation Eases Rate Hike Fears: 5 British Picks

With key inflation gauges declining, BOE rate hike fears have clearly subsided making British big companies a strong investment.

The Zacks Consensus Estimate for the current year has improved 8.6% over the last 60 days. The Zacks Consensus Estimate for the current year has improved 0.4% over the last 30 days. These returns cover a period from 1988-2017. Spirit of N. Ranko Berich, head of market analysis at Monex Europe, said the inflation figure "will be a spanner in the works for the Bank of England". The figure was well below economists’ average expectation in a Reuters poll for it to hold at 2.7 percent.

Britain has officially got a smidgen of a pay rise, with average wage increases up to 2.8 per cent in February - a whole 0.1 per cent above the inflation figure for that month. Global debt rises to new record high $164 trillion, or 225% of world GDP, says @IMFNews . So, the interest rate on student debt is going to be as much as 6.3% from this autumn (up from 6.1%). This is the lowest annual growth in London since September 2009, when it was negative 3.2%.

Surprise inflation fall 'good news for consumers but a headache for Bank'

Inflation has unexpectedly dipped to a one-year low, providing relief for cash-squeezed households and easing pressure on the Bank of England to hike interest rates next month.

UK consumer price inflation fell in March to 2.5%, the lowest rate in a year, according to the Office for National Statistics. The BBC is not responsible for the content of external sites. For the first quarter as a whole, annual inflation averaged 2.7 percent — below the forecast of 2.9 percent that the BoE made in February. A statue is silhouetted against the Bank of England in the City of London, Britain, December 12, 2017.

Predictably, IMF urges govts to reduce debt levels. Will govt really let tuition fee interest rate go up to 6.3% in autumn on basis of today’s RPI? London has shown a general slowdown in its annual growth rate since mid-2016. If you wish to go to ZacksTrade, click OK . However, following the release of the new economic data, the pound sterling declined. J Sainsbury plc  ( JSAIY - Free Report ) is a major food, general merchandise and clothing retailing company in the U.K.

UK inflation falls to lowest in a year

A slowdown in womenswear price rises during March sent UK consumer price inflation down to 2.5%.

The ONS also said house prices in February rose by 4.4 percent year-on-year across the United Kingdom as a whole compared with 4.7 percent in January, the weakest increase in seven months. The strength of feeling has got stronger since and even the decent dip in inflation failed to change minds. Brent crude has jumped over 2% to $73.30, the highest level since November 2014. Those affected may feel aggrieved that RPI, rather than the (lower) CPI, is used.

A significant decline in inflation across the pond came as a breather for the key U.K. indexes on Apr 18. Most of the big British companies and blue-chips have significant exposure in the global market. This London-based company has a Zacks Rank #2. The expected earnings growth rate for the current year is 12.62%. The monthly returns are then compounded to arrive at the annual return. The data appears to show that the squeeze on UK households may be coming to an end as wages rise.

Falling price data sends sterling to four-day low

Sterling briefly hit a four-day low on Wednesday after British inflation cooled unexpectedly, raising concerns that the Bank of England might not implement further increases to interest rates after next month's expected hike.

But the committee is also looking at other data showing domestic price pressure still in the pipeline, notably a pick-up in wage growth and firm input prices. Good news from service component bringing 0.67pt to inflation after 0.58pt prior month. Recent economic data also weighed on the pound sterling, which turns out to be a boon for British blue-chip giants that generate their revenues in foreign currencies.

The expected earnings growth rate for the current year is 6.07%. The Zacks Consensus Estimate for the current year has improved 6.4% over the last 60 days. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Despite the inflation fall, economists still expect the Bank of England to raise interest rates in May. It later trimmed some of those losses to stand only 0.4 percent down at $1.4233.

Editing by Catherine Evans and Toby Chopra Our Standards: The Thomson Reuters Trust Principles. Wages rising by more than inflation are bandied about as a component of that. That’s because only the better-paid borrowers will clear their debts within the 30-year timescale anyway, due to the way they are repaid. Soft UK inflation data will sow seeds of doubt over a May Bank of England rate hike. Wages are still worth less than before the financial crisis, leaving many working people struggling to get by.

Inflation drops to its lowest level in a year as the Brexit spending squeeze finally lets up

On Apr 17, the IMF showed optimism in the British economy’s growth potential as it raised its year-over-year economic growth projection from the earlier 1.5% to 1.6%. The Zacks Consensus Estimate for the current year has improved 1.8% over the last 30 days. RELX has gained 9.2% in a year. Zack Ranks stocks can, and often do, change throughout the month. Laith Khalaf, senior analyst at Hargreaves Lansdown, said that while he expected the Bank to proceed with the increase, he believes the Monetary Policy Committee will move slowly.

But inflation appears to have peaked in November, when CPI hit 3.1 percent, the highest reading in more than five years. Apps Newsletters Reuters Plus Advertising Guidelines Cookies Terms of Use Privacy All quotes delayed a minimum of 15 minutes. I have quite a few doubts that the Bank will actually hike in May, butI think a rate rise would be a wise move. This change in interest rate will make no impact on a borrowers’ monthly repayments and very few people are likely to be affected by the increase.

Surprise inflation drop muddies outlook for interest rates

British inflation unexpectedly cooled to a one-year low in March, calling into question whether the Bank of England will raise interest rates more than once before the end of the year.

Real time prices by BATS. The ONS said the biggest downward contribution to inflation came from clothing and footwear, mainly women's clothing. Against the euro, sterling weakened by 0.5 percent EURGBP=D3 to 87.03 pence. Sterling has recovered some of its value in recent months and had reached a post-Brexit referendum high of $1.4377 on Tuesday. See here for a complete list of exchanges and delays. © 2018 Reuters.

Once the loans are in repayment, only borrowers earning over £45K are charged the maximum rate. Sterling has now fallen by a whole cent against the US dollar, to $1.419. The drop in Britain’s inflation rate is welcome news for UK households. Additionally, core CPI data came in at 2.3% last month, lower than 2.4% registered in February. British Stocks to Buy Now Following the fall in inflation, wages, industrial and manufacturing production, rate hike worries have abated.

Surprise fall in inflation in March is good news for cash-squeezed households

Inflation unexpectedly dropped last month, providing some relief for squeezed households.

That should help to ease some of the inflation pressure which has hurt the spending power of many households. The Office for National Statistics said alcohol and tobacco helped ease inflation pressures in March. TSB meltdown: Locked out of your account? Bitcoin vs the South Sea, Mississippi and other bubbles. At the start of this week, a May rate hike looked to be nailed on. With inflation falling back towards the Bank of England’s 2% target and wage growth overtaking inflation for the first time in over a year, it finally looks like the squeeze on living is easing.

Additionally, a weaker pound has brought focus back on British stocks that have strong foothold in the international market. The expected earnings growth rate for the current year is 41.57%. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. Internal Use only. Alcohol and tobacco also helped ease inflation pressures.

Lowest Jobless Rate Since 1975 Fails to Spur UK Wage Growth

Basically: the biggest bubble in history. Though the impact of a weakened pound appears to be dropping out of the inflation numbers, three other factors are likely to exert an offsetting upward pressure on the pace of price increases. These positive signs of a strengthening economy could be all the Bank of England needs to pull the interest rate lever in May – moving policy back towards monetary normalisation.

These stocks also flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). The Zacks Consensus Estimate for the current year has improved 7.3% over the last 30 days. RELX PLC (RELX) - free report >> Fiat Chrysler Automobiles N.V. (FCAU) - free report >> Barclays PLC (BCS) - free report >> J. But we shouldn't lose sight of the fact that inflation is still above the Bank of England's target and wage growth remains below its pre-financial crisis average.

Euro zone bond yields DE10YT=RR extended their falls after the UK inflation numbers as British gilt yields tumbled. Picture taken March 20, 2018. The headline inflation rate has now fallen from 3.1% to 2.5% between November and March. To do this we will link your MailOnline account with your Facebook account. Given current financial conditions, risks to financial stability and growth are high over the medium-term.

SIMON LAMBERT: Raising interest rates is a good idea - but doing it because wages are rising faster than inflation is not

Low wages have been a persistent problem for the British economy and we need to avoid killing off real pay rises just as they begin.

Moreover, decline in food prices also weighed on producer price performance, with Producer Price Index (PPI) coming in at 4.2% in March - its lowest since 2016. You can see the complete list of today’s Zacks #1 Rank stocks here . Barclays has gained 15.6% in a year’s time. On average, the full Strong Buy list has more than doubled the market for 29 years. For the Bank of England, it reduces pressure to raise rates," he added. "The headline inflation rate has now fallen from 3.1% to 2.5% between November and March.

Reporting by Saikat Chatterjee; Editing by David Goodman Our Standards: The Thomson Reuters Trust Principles. Junior finance minister Mel Stride told Sky News that the latest inflation figures pointed to a “potential turning point” for real wages. Gender pay gap reporting has uncovered the inequality in top jobs across the UK – but the We Can scheme in Norfolk is hoping to coach ambitious women to help their journey up the career ladder.

This reflects the fact that recent years of low interest rates—needed to support economic growth—have provided an environment in which vulnerabilities have been building. The Bank of England should not therefore treat this latest fallback in inflation as a dovish signal for interest rate policy. Since the shock vote to leave the EU, consumers have continued to spend despite immense pressure on their pockets – meaning they have likely accumulated debt.

Fiat Chrysler Automobiles N.V.  ( FCAU - Free Report ) is a designer, manufacturer, distributor and seller of vehicles, components and production system in the global market. Aptiv PLC  ( APTV - Free Report ) is a manufacturer of vehicle components and provider of safety technology solutions to the global automotive and commercial vehicle markets. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.

Yet in the City, the probability that traders put on an interest rate rise next month barely shifted - from 90% to 80%. Apps Newsletters Reuters Plus Advertising Guidelines Cookies Terms of Use Privacy All quotes delayed a minimum of 15 minutes. Britain’s Trades Union Congress said wages were still worth less in real terms than before the financial crisis, and that an interest rate hike was the last thing British workers needed.