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 supply front and centre for policy makers
The passing of the previously delayed Housing Australia Future Fund (HAFF) means that all the Albanese government's announced housing policies are now in place. These policies represent a minimum funding pool of $5.5 billion stretching to the end of the decade, potentially lifting as high as $10 billion if all targets are met and excess fund returns achieved.
Find Out More
Post
BoJ will continue effective zero interest rate policy anyway in Japan
The Bank of Japan (BoJ) maintained the policy rates at its September meeting, following a tweak in its yield curve control policy in July. Although this decision was widely expected, the markets are starting to speculate policy changes within the coming quarters, especially after the BoJ governor's recent interview.
Find Out More