© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - The Return of Inflation
Posted 15th September 2015

The Return of Inflation

The key figure within the recent inflation data was not the headline of the Consumer Price Index (CPI) rate, but instead, the surprise jump in core inflation was an eye opener this time around.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

The Return of Inflation

The Return of Inflation

Image

The key figure within the recent inflation data was not the headline of the Consumer Price Index (CPI) rate, but instead, the surprise jump in core inflation was an eye opener this time around.

This figure, which strips out volatile components like food and energy, jumped sharply to 1.2%, confounding expectations for it to remain flat at 0.8%. Surprisingly, the largest contribution to the increase came from clothing and footwear, with retailers discounting far less heavily than at the same time last year.

The rise in the core figure suggests that underlying inflationary pressures could be building in the economy, and is possibly the clearest indication yet that the Bank of England might have to raise interest rates sooner rather than later. Currency markets seem to agree, sterling has jumped around a cent against the dollar, and almost a cent against the euro immediately after the figures were released.

Headline CPI is only 0.1%, largely driven by a factor outside of the central banks’ control, namely the oil price. Recent further falls mean that it could depress the headline rate of inflation well into next year. However, policymakers know this is ultimately a temporary factor, and as such are increasingly looking at the core measure when deciding whether higher interest rates are appropriate.

These numbers will increase speculation over a rate rise later this year. It will take some time for more MPC members to be persuaded to vote for higher rates and therefore, early 2016 could be more likely. Thereafter the path of rate rises is likely to be a slow incline, and it would not be a surprise to see them stuck on 0.75% for some time.

Categories: Finance


You Might Also Like
Read Full PostRead - Eye Icon
Longstanding Xero Director Launches Libeo in the UK
Leadership
12/05/2022Longstanding Xero Director Launches Libeo in the UK

With the leadership of newly appointed Glen Foster, Managing Director for the UK and Northern Europe, the move will be powered by Libeo’s competitive advantage and its innovative differentiating features.

Read Full PostRead - Eye Icon
The Role of Construction Accident Statistics in Business Planning and Risk Management
News
16/10/2024The Role of Construction Accident Statistics in Business Planning and Risk Management

Construction accident statistics are the central component of risk management in the construction industry. By analyzing and understanding accident data, companies can identify potential hazards, implement safety measures, create a safer environment for their

Read IssueRead - Eye Icon
Issue 9 2024
Issues
05/09/2024Issue 9 2024

As we approach the end of 2024’s third quarter, we take another moment to appreciate what has gone in the months before. Recently, we have crowned a range of tenacious and committed individuals and businesses and, here, we wish to showcase and celebrate thei

Read Full PostRead - Eye Icon
Xplore Agrees to Purchase Motion Computing
Finance
Read Full PostRead - Eye Icon
A Look at Careers with Elevated Risks of Cancer and Occupational Diseases
News
23/08/2024A Look at Careers with Elevated Risks of Cancer and Occupational Diseases

Certain careers pose significant health risks due to inherent job-related hazards. Safety risks such as repeated stress injuries and dangerous chemicals are frequently encountered by workers in these industries. This exposure has the potential to cause major h

Read Full PostRead - Eye Icon
Debt Consolidation: The Benefits, Options, and How to Get Started
News
10/06/2022Debt Consolidation: The Benefits, Options, and How to Get Started

If you’re struggling to keep up with multiple monthly payments from a list of cash advance apps, debt consolidation may be a good option for you. This process involves combining all of your outstanding debts into a single balance that has a lower interes

Read Full PostRead - Eye Icon
A Notary for Your Diary – The Seal of Approval That Every Business Needs
Legal
22/01/2015A Notary for Your Diary – The Seal of Approval That Every Business Needs

With only 800 in the country, finding and accessing a Notary Public for England and Wales can take up valuable time and resources.

Read Full PostRead - Eye Icon
All Wheels All Ages All Abilities
Innovation
20/11/2017All Wheels All Ages All Abilities

All Wheels All Ages All Abilities

Read Full PostRead - Eye Icon
How to Create a Feedback-Driven Workplace
News
24/06/2024How to Create a Feedback-Driven Workplace

How to Create a Feedback-Driven Workplace A lot of us find feedback in the workplace to be terrifying, and it has a negative reputation to boot. It makes us appear lazy and uninspired by highlighting all the things we should have done differently. However, thi



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow