Connect with us

Business

UK inflation reaches 2.1%, exceeding the Bank of England target

Published

on

UK inflation reaches 2.1%, exceeding the Bank of England target

Article content

LONDON – British inflation unexpectedly jumped above the Bank of England’s target in May when it hit 2.1%, part of a post-lock price hike that is expected to pick up the pace.

The acceleration in the consumer price index from 1.5% in April largely reflected weak inflation in May 2020, when the economy was reeling from its first tight shutdown.

The figure represents the first time inflation has exceeded the Bank of England’s 2% target in nearly two years and was above 33 forecasts in a Reuters poll of economists that pointed to inflation rising to 1.8. %.

Yields on British government bonds rose early Wednesday and yields on two-year government bonds, which are sensitive to speculation about the Bank of England’s policy moves, briefly hit their highest level at nearly a year. month.

Investors around the world are evaluating the risks of a sustained rise in prices, especially in the United States, where annual inflation reached 5.0% in May, the highest in nearly 13 years, and where President Joe Biden proposed a $ 6 trillion stimulus package.

“Today’s inflation rate was much stronger than anticipated and confirms that as the UK economy moves into its reopening, inflationary pressures continue to mount,” said Ambrose Crofton, Global Market Strategist at JP Morgan Asset Management .

Commercial

Article content

CPI data showed that fuel prices in May were nearly 18% higher than the previous year, while clothing and footwear costs rose 2.1% as people came out of isolation and new equipment was bought.

Price data was collected around May 11, before pubs and restaurants were allowed to serve customers indoors and cinemas and hotels reopened as of May 17.

“All eyes now turn to the Bank of England meeting next Thursday for an indication of how and when it plans to start on the path to more normal politics,” Crofton said.

The Bank of England has said it expects inflation to hit 2.5% by the end of this year before returning to its 2% target as the impact of post-lock energy price increases fades along. with other cost pressures, such as bottlenecks in supply chains.

Sudden increases in inflation since the 2008 financial crisis proved temporary, as the labor market was too weak to create the kind of price and wage spirals that occurred in the 1970s.

The central bank is expected to leave the policy unchanged on June 24 after its last meeting.

SIX MONTH MARCH

Jack Leslie, an economist at the Resolution Foundation think tank, said that accelerating price growth from 0.3% in November to 2.1% in May represented the fastest rise in six months since the British pound collapsed after the fall. 2008-09 financial crisis.

“But UK inflationary pressures are different, and nowhere near as great, as those causing fierce debate in America,” Leslie said.

The British pound rose slightly after the ONS figures.

Commercial

Article content

Core inflation, which excludes the price of food, energy and other volatile items, rose to 2.0% in the 12 months through May, the National Statistics Office said.

While Bank of England Governor Andrew Bailey and most of his colleagues say the rise in inflation will be temporary, Chief Economist Andy Haldane said last week that the central bank faced the “most dangerous moment” since the crisis of the European exchange rate mechanism in 1992.

There were signs of increased price pressure in Wednesday’s data.

Prices paid by manufacturers for their inputs increased 10.7% in the 12 months to May, the highest since September 2011, and the prices they charged increased 4.6%, the largest increase since January 2012. (Report by William Schomberg and David Milliken; edited by Giles Elgood)

Commercial

In-depth reports on the economics of innovation from The Logic, presented in association with the Financial Post.

Comments

Postmedia is committed to maintaining a lively but civilized discussion forum and encourages all readers to share their views on our articles. Comments can take up to an hour to moderate before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications – you will now receive an email if you receive a response to your comment, there is an update from a comment thread you follow, or if a user you follow comments. Visit our Community Principles for more information and details on how to adjust your E-mail settings.

Advertisement
Advertisement

Lifestyle

LifeStyle1 week ago

How to Prioritize Self Care as a New Parent

A bundle of joy has joined you in your life and you couldn’t be happier. But, at the same time,...

LifeStyle1 week ago

5 Reasons Why You Can’t Stay Asleep

You have likely heard it most of your life: getting a good night’s sleep is important for your overall health....

LifeStyle1 week ago

4 Ways to Spread Joy This Fall

Traditionally, many people strive to spread as much joy as they can in the weeks leading up to Christmas. But...

LifeStyle4 weeks ago

Tips to Boost Your Energy and Ensure Life Longevity with NMN Supplements

Australia’s median age limit increased by two years recently. Higher NAD+ can improve your metabolism rates and prolong natural aging....

LifeStyle2 months ago

5 Tips on Writing APA Research Paper

When students reach college education, they understand that it won’t all be flowers and sunshine. There are different courses with...

Support group for businesses to overcome challenges Support group for businesses to overcome challenges
LifeStyle2 months ago

Support group for businesses to overcome challenges

All-day brunch and soup kitchen Cafe Coco suffered as walk-ins dwindled significantly. It’s a tourist-dependent cafe that’s nestled in the...

S’pore startup Shiok Meats acquires clean red meat company Gaia Foods S’pore startup Shiok Meats acquires clean red meat company Gaia Foods
LifeStyle2 months ago

S’pore startup Shiok Meats acquires clean red meat company Gaia Foods

According to Technology in Asia, Shiok Meats has acquired a stake of more than 90% in Gaia Foods for an...

Marianna Hewitt’s home proves that neutral decor can be full of personality Marianna Hewitt’s home proves that neutral decor can be full of personality
LifeStyle2 months ago

Marianna Hewitt’s home proves that neutral decor can be full of personality

If anyone understands the importance of maintaining your brand, it is Marianna Hewitt. The trusted influencer and founder of the...

The 16 best stuffed pepper recipes for every occasion The 16 best stuffed pepper recipes for every occasion
LifeStyle2 months ago

The 16 best stuffed pepper recipes for every occasion

Something you may not know about me is that I absolutely adore a pepper. Raw, cooked, marinated, bathed: each and...

Top 10 Bedroom Plants That Work As Air Purifying Plants Top 10 Bedroom Plants That Work As Air Purifying Plants
LifeStyle2 months ago

Top 10 Bedroom Plants That Work As Air Purifying Plants

Setting a specific tone in a bedroom can happen in many ways. A beautiful candle, plush rugs, soft bedding, soothing...

Advertisement

Sport

Sports2 months ago

5 Tips for Setting Up Your PC for Online Gaming

Due to advances in technology, online gamers can enjoy a gaming experience that was unthinkable even a decade ago. High-resolution...

Sports2 months ago

How to Succeed in Poker Tournaments

Perhaps your first big poker tournament is coming up, or you’ve been gathering skills ready to enter – no matter...

Sports2 months ago

Is The Olympics Still Relevant?

As the Tokyo Olympics has come to a close, competitors must move on from the excitement of experiencing an Olympic...

Fernández reflects on the game against Dart: ‘Honestly, I can’t think of anything positive’ Fernández reflects on the game against Dart: ‘Honestly, I can’t think of anything positive’
Sports2 months ago

Fernández reflects on the game against Dart: ‘Honestly, I can’t think of anything positive’

var adServerUrl = “”; var $ el = $ (“# video_container-985707”); var permalink = $ el.closest (‘. snet-single-article’). data (‘permalink’);...

Tammy Abraham to Roma – Mourinho is the perfect coach for the striker Tammy Abraham to Roma – Mourinho is the perfect coach for the striker
Sports2 months ago

Tammy Abraham to Roma – Mourinho is the perfect coach for the striker

It seems that not too long ago, a young English Target Man was a troubling prospect for most Premier League...

Explanation: Why Barcelona had to let Messi go Explanation: Why Barcelona had to let Messi go
Sports2 months ago

Explanation: Why Barcelona had to let Messi go

Barcelona’s Argentine forward Lionel Messi cries during a press conference at Barcelona’s Camp Nou stadium on August 8, 2021. –...

Are Arsenal and Spurs left out of the top 6 in dispute as the 2021/22 season approaches? Are Arsenal and Spurs left out of the top 6 in dispute as the 2021/22 season approaches?
Sports2 months ago

Are Arsenal and Spurs left out of the top 6 in dispute as the 2021/22 season approaches?

Manchester United, Manchester City, Liverpool, Chelsea, Spurs and Arsenal are the teams that are widely regarded as the top 6...

What should team Canada’s men’s hockey roster look like? What should team Canada’s men’s hockey roster look like?
Sports2 months ago

What should team Canada’s men’s hockey roster look like?

We have sent an email with instructions to create a new password. Your current password has not been changed. We...

Haaland, but staying in Dotmund, can BVB get the title on 21/22? Haaland, but staying in Dotmund, can BVB get the title on 21/22?
Sports2 months ago

Haaland, but staying in Dotmund, can BVB get the title on 21/22?

There are almost twenty days left in the transfer window. The window is in full swing as deals that would...

Knicks agree to deal with Dwayne Bacon: reports Knicks agree to deal with Dwayne Bacon: reports
Sports2 months ago

Knicks agree to deal with Dwayne Bacon: reports

Dwayne Bacon # 8 of the Orlando Magic shoots as John Collins # 20 of the Atlanta Hawks defends during...

Advertisement

Entertainment

Venice adds Doc ‘Ennio’;  Netflix Confirms Sanjay Leela Bhansali Series – News Block Venice adds Doc ‘Ennio’;  Netflix Confirms Sanjay Leela Bhansali Series – News Block
Entertainment2 months ago

Venice adds Doc ‘Ennio’; Netflix Confirms Sanjay Leela Bhansali Series – News Block

Venice adds Giuseppe Tornatore’s Ennio Morricone film The Venice Film Festival incorporates the Out of Competition screening of Ennio Morricone’s...

The Jeffrey Epstein Victims Fund has finished paying $ 121 million The Jeffrey Epstein Victims Fund has finished paying $ 121 million
Entertainment2 months ago

The Jeffrey Epstein Victims Fund has finished paying $ 121 million

After awarding more than $ 121 million to about 150 applicants, a compensation program for survivors of Jeffrey Epstein’s sexual...

Matt Roloff and Karyn Chandler move in together, discuss marriage Matt Roloff and Karyn Chandler move in together, discuss marriage
Entertainment2 months ago

Matt Roloff and Karyn Chandler move in together, discuss marriage

Small people, big world star Matt Roloff and his girlfriend, Karyn Chandlerhave revealed their big summer plans in a new...

Mike Shouhed wants Reza Farahan to apologize for being a ‘traitor’ Mike Shouhed wants Reza Farahan to apologize for being a ‘traitor’
Entertainment2 months ago

Mike Shouhed wants Reza Farahan to apologize for being a ‘traitor’

Shouhed says his Shahs of Sunset co-star “cuts deep and says things that are hard to forgive.” While a sexting...

Joey Lawrence and Samantha Cope are engaged Joey Lawrence and Samantha Cope are engaged
Entertainment2 months ago

Joey Lawrence and Samantha Cope are engaged

He put a ring on it! Joey lawrence is engaged to the actress Samantha cope one year after filing for...

Christine Applegate was diagnosed with multiple sclerosis Christine Applegate was diagnosed with multiple sclerosis
Entertainment2 months ago

Christine Applegate was diagnosed with multiple sclerosis

August 10, 2021 Christine Applegate was diagnosed with multiple sclerosis (MS). Christina Applegate The 49-year-old actress took to Twitter on...

UK advertisers form tapestry with clients Coel, Fassbender, Foy – News Block UK advertisers form tapestry with clients Coel, Fassbender, Foy – News Block
Entertainment2 months ago

UK advertisers form tapestry with clients Coel, Fassbender, Foy – News Block

EXCLUSIVE: UK advertisers Donna Mills and Emma Jackson, longtime representatives of London-based Premier Communications, have launched the new advertising agency...

Christina Applegate: actress reveals multiple sclerosis diagnosis Christina Applegate: actress reveals multiple sclerosis diagnosis
Entertainment2 months ago

Christina Applegate: actress reveals multiple sclerosis diagnosis

prime time Emmy-winning actor Christina applegate has revealed a multiple sclerosis condition through a Twitter post late on Monday night....

Prince Harry and Meghan Markle wanted to move to New Zealand in 2018 Prince Harry and Meghan Markle wanted to move to New Zealand in 2018
Entertainment2 months ago

Prince Harry and Meghan Markle wanted to move to New Zealand in 2018

Prince harry and Meghan Markle according to Queen Elizabeth IIRepresentative to New Zealand, Governor General Patsy Reddy… She said Associated...

Alarming new UN climate report says humanity has really screwed itself up Alarming new UN climate report says humanity has really screwed itself up
Entertainment2 months ago

Alarming new UN climate report says humanity has really screwed itself up

The last evaluation of climate science is a “code red for humanity,” the United Nations chief said on Monday, while...

Advertisement

Tech

Tech5 days ago

How to Provide Cybersecurity for Firefox

Mozilla Firefox is one of the first browsers that come to mind when thinking about the best privacy-oriented browsers available...

Tech3 weeks ago

6 Important Questions to Ask Your Internet Provider

Choosing the best internet provider can be challenging, especially when you don’t know what questions to ask. You want to...

Tech4 weeks ago

How Serious is Plagiarism in College?

Studying in college often demands writing essays and course papers. You may study technical subjects and do not have many...

Tech1 month ago

Three Possible Ways of How You Can Transfer Contacts from Outlook to iPhone

MS Outlook plays an important role in putting daily life in order, especially with regard to email management. If you...

Tech1 month ago

Importance of Email Validation

According to recent stats, 30% of users change their email every year. Therefore, if your mailing list is more than...

Tech1 month ago

Before Doing Virtual Staging, Here’s What You Should Know

The majority of people today go online to look for homes. When a potential buyer spots a house online that...

Tech1 month ago

What Technologies are Online Casinos Using?

Online casinos have become an ideal choice for a lot of players, especially because they let players take their games...

Tech2 months ago

Grow Your Brand With These 5 Social Media Tips

Whether you’re operating a new business or working to grow your brand, social media is an excellent place to start....

Tech2 months ago

Is Mining Ethereum Still Profitable in 2021?

Globally, there have been lots of innovations and modernization in different aspects of life. This fact has contributed to the...

Tech2 months ago

Popularity Of the Blockchain Technology: How Familiar Are You with It?

Cryptocurrencies are a form of digital currency that stands out because it is decentralized. Cryptocurrency also stands out because it...

Advertisement
Advertisement