• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

UK CPI Falls To A One Year Low

By Kurt Osterberg · On April 18, 2018

The office of National Statistics released the CPI data for the month of March, which missed analysts’ forecasts. The data showed that the consumer prices increased by 0.1% during the month. Analysts were expecting the data to show an inflation of 0.3%, a point lower than February’s growth of 0.4%. On an annualized basis, the CPI rose by 2.5% which was lower than the 2.7% traders were expecting. The CPI that includes housing fell from 2.5% to 2.3% which was the lowest level since March 2017.

The biggest contributor to low inflation was the changes to clothing and footwear whose inflation rose at a lower rate than it did a year ago. They were followed by the prices in alcoholic and drinks and tobacco which was contributed by the changes in budget cycle. The taxes on these products were announced in November 2017 instead of March.

As you recall, inflation in the UK reached the critical 3.1% mark in December, prompting the necessity of the Bank of England governor to write a letter to the exchequer treasurer explaining the reason. In the following months, the annual rate has continued to slide with inflation rising by 3.0%, 2.7%, and 2.5% in January, February, and March respectively.

The sluggish growth on inflation now removes the urgency for the BOE to hike interest rates. As I have explained before, central banks use interest rates as a tool for limiting the growth in inflation. A surging inflation at a time of stagnant wage growth is usually not a good thing for the population who are forced to pay more for goods at services with their stagnant wages.

Yesterday, the government data showed that while the unemployment rate had declined to 4.2%, the wage growth issue was still a problem. Last month, wages grew by 2.8% just like it did a month before. This was lower than the 3.0% growth investors were expecting. 55K people were employed while the claimant claims declined.

The data comes at a time when the pound has been strengthening. In the earlier article today, I wrote that the pound had risen significantly in the past one year. In the article, I concluded that the cable had just completed the impulse Elliot Wave and that there was a possibility that it would fall to the 1.4050 level.

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

  • Finance

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

  • Finance

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

No Comments

Leave a reply Cancel reply

Top Finance

  • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
  • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
  • Hedge Funds In The US Hedge Funds In The US
  • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

New Posts

  • STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    June 20, 2022
  • NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    June 20, 2022
  • 5 NFTs Trending on Twitter Going Cheap to Invest in Now

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

    June 20, 2022
  • Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    June 20, 2022
  • Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    June 20, 2022
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018-2021 NJCEE. All Rights Reserved.