Arab Today, arab today british inflation falling faster than central bank forecast
Last Updated : GMT 17:20:01
Arab Today, arab today
Arab Today, arab today

British inflation falling faster than central bank forecast

Arab Today, arab today

Arab Today, arab today British inflation falling faster than central bank forecast

London - XINHUA

Figures released Tuesday showed British inflation fell for the third month running, which economists said indicated the central bank had underestimated disinflationary pressures. The inflation rate, as measured by Consumer Price Index (CPI), fell to 2 percent in December 2013, down from 2.1 percent the previous month. This is the first time the inflation rate has hit the Bank of England (BOE)'s target figure of 2 percent since 2009. Daiwa Capital Markets said in a note that it believed that the BOE had underestimated the disinflationary pressures in the economy in its most recent Inflation Report, in November. The BOE had forecast that a fall to 2 percent would be reached only in the first quarter of 2015. Lower food prices was a driver in the downward movement of CPI, however higher transport and fuel costs were also evident and may drive the index upwards in the coming months. HSBC Global Research chief Britain economist Simon Wells said that the BOE had overestimated inflation pressure throughout the second half of 2013. James Knightley, chief Britain economist with ING Bank, said this is the first time the BOE target has been met since November 2009 and reflected a big slowdown in food price inflation, from 2.8 percent in November to 1.9 percent in December. This was joined by a slowdown in service price inflation to 2.4 percent, once more the lowest such inflation rate since November 2009, said Knightley. Utility bill hikes made an upward contribution, said Knightley, but that will be felt more in the January data released next month. Producer price inflation remained benign with input prices falling 1.2 percent month on month, partly as a result of strong sterling keeping import prices down, said Knightley. The economist added that output prices rose just 1 percent year on year. "With pipeline inflation pressures at such low levels there is growing optimism that consumer prices will stay close to target this year," said Knightley. "With the labor market strengthening we will, hopefully, see wages start to pick up to the extent that incomes are rising faster than the cost of living," he said. Wages are currently going up at about 0.9 percent annually, far below the inflation rate. Knightley said upward pressures on wage growth would "ease the squeeze on household finances and allow consumer spending to continue growing strongly," providing further support for the continuing recovery.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today british inflation falling faster than central bank forecast Arab Today, arab today british inflation falling faster than central bank forecast

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Air raid kills eight women, child

GMT 06:42 2017 Friday ,17 February

Air raid kills eight women, child
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 05:26 2017 Sunday ,19 February

US natural gas market tightens

GMT 05:06 2017 Sunday ,19 February

Merkel: Euro is too low for Germany

GMT 04:58 2017 Sunday ,19 February

Swedish PM: Brexit deal in 2 years is unlikely

GMT 20:02 2017 Saturday ,18 February

Gold edges higher as global equities lose momentum

GMT 10:20 2017 Thursday ,16 February

New Zealand's Spark rings up interim profit rise
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 15:16 2017 Sunday ,19 February

Apple to start India operations with iPhone SE

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday