U.K. Inflation Returns to BOE Target on Air Fares, Car Prices
Wednesday, 19 June 2019 15:53 WIB | ECONOMY |UK Inflation

Falling air fares and car prices saw U.K. inflation return to the Bank of England™s target last month.

Consumer prices rose 2% from a year earlier, down from 2.1% in April, the Office for National Statistics said Wednesday. Core inflation slowed to 1.7% from 1.8%.

Air fares, which surged in an Easter-related boost in April, fell 5.2% in May compared with a 10% increase a year earlier. Vehicle prices declined 0.3%, and there was also downward pressure from the cost of auto fuel, which rose less than it did last May.

Upward pressures came from rising prices for games, toys, hobbies, furniture and accommodation.

The BOE expects inflation to fall back below target this year, giving officials breathing space to keep interest rates on hold amid the continuing uncertainty over Brexit. Policy makers will announce their latest decision at noon on Thursday.

While the labor market remains tight, growth in the wider economy is slowing sharply as the first-quarter boost from stockpiling evaporates.

Inflation in the services sector, seen as a proxy for domestically generated inflation, slowed to 2.6% in May from 2.9% in April, while goods-price inflation edged up to 1.5%.

Other figures showed pipeline pressures remained subdued, with producer input prices rising just 1.3% from a year earlier, the weakest reading in three years. Cheaper oil drove the slowdown. Output prices gained 1.8%, also the least since 2016.

House prices in England and Wales rose an annual 1.4% in April amid concerns over Brexit and higher property taxes. In London, they fell 1.2%. Prices rose on the month, however, in a sign the property market may be stabilizing.

Wales was the strongest U.K. region, with house prices up 6.7% on the year, the biggest increase since 2014.

Source : Bloomberg

RELATED NEWS

BOE Rate Cut in Doubt Amid Signs of Post-Election Growth Bounce
Friday, 24 January 2020 16:43 WIB

A closely watched measure of U.K. economic activity surged to the highest since 2018 in January, undercutting the case for a Bank of England interest-rate cut next week. IHS Markit's flash index for output across the whole economy jumped to 52.4 as firms cited reduced political uncertainty in the w...

Germany Starts to Shake Off Slump With Better Start to 2020
Friday, 24 January 2020 15:49 WIB

Germany economy took a big step to putting the horrors of 2019 behind it, opening the new year with a pickup in activity and business confidence. IHS Markit's composite Purchasing Managers' Index rose to a five-month high of 51.1 in January, beating forecasts for a reading of 50.5. While manufactur...

Australia jobless rate falls to 9-month low, may head off rate cut
Thursday, 23 January 2020 08:59 WIB

Australian employment outpaced forecasts for a second month in December pushing the jobless rate to a nine-month low, a much-needed improvement that could forestall a near-term cut in interest rates. The local dollar climbed 0.47% to $0.6874 as the market pared the chance of an easing from the Rese...

U.K. Retail Sales Extend Worst Run on Record Despite Discounting
Friday, 17 January 2020 16:47 WIB

U.K. consumers stayed away from the stores during the key Christmas trading period, despite widespread discounting and a break in the political impasse over Brexit.  The volume of goods sold in stores and online fell 0.6% in December, confounding expectations of a 0.6% increase. Sales excludin...

China's Economy Grew 6% in Fourth Quarter as Demand Stabilized
Friday, 17 January 2020 09:14 WIB

China™s economy stabilized last quarter after slowing to the slowest pace in almost three decades, as rising demand and easing trade tensions supported sentiment. Gross domestic product rose 6% in the final quarter of 2019 from a year earlier, the same as in the previous three-month period a...

ANOTHER NEWS
Stocks end lower on worries over coronavirus outbreak
Saturday, 25 January 2020 04:19 WIB Stocks ended lower Friday, giving up early gains after authorities confirmed a second U.S. coronavirus case. The Dow Jones Industrial Average fell around 170 points, or 0.6%, to end near 28,990, according to preliminary figures, while the S&P...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.