UK | Inflation surprise triggers a change of MPC tone
Another upside inflation surprise points to the CPI measure peaking much higher than we previously thought. But June’s rise in prices did little to confirm fears that elevated inflation will become a persistent problem.
What you will learn:
- Comments by two MPC members suggest that the odds of the committee tightening policy earlier than expected have risen. And a strong performance from labour market indicators in June errs in the same direction.
- Economic indicators have had a habit of surprising to the upside in recent months. And while this has been a pleasing development in the case of, say, retail sales, an unexpectedly big jump in inflation in June was a less welcome eye-opener.
- The annual CPI measure rose to 2.5% from 2.1% in May. June’s reading compared with a recent low of only 0.2% last August and was the highest outturn since August 2018.
Tags:
Related Services
Post
Housing affordability lowest in Greek, Danish, and German cities
House prices across Europe have soared over the past decade, especially in cities. During this time, incomes in Europe have not kept pace with house price hikes on average, squeezing the purchasing power of homebuyers in many European cities.
Find Out More
Post
Parsing US federal job cuts by metro
Cuts to the Federal government workforce, which we estimate to be 200,000 in 2025, will have a modest impact nationally, but more significant implications for the Washington, DC metropolitan economy as it accounts for 17% of all non-military federal jobs in the US.
Find Out More