© 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
Best Classical Music Promotions Company – UK
Finance
01/07/2016Best Classical Music Promotions Company – UK

From Sweden Productions are a London-based production company specialising in production management and promotions of large-scale high profile concerts, festivals and events with a Swedish connection.

Read Full PostRead - Eye Icon
Shaping the Future of Finance
Finance
09/01/2024Shaping the Future of Finance

Following its licensing from the Central Bank of Afghanistan in 2009, Ghazanfar Bank is a full-fledged licensed commercial bank that has become one of the leading entities of its kind.

Read Full PostRead - Eye Icon
As Rents Rise, Vanderbilt Mortgage Highlights Benefits of Homeownership
Finance
27/08/2015As Rents Rise, Vanderbilt Mortgage Highlights Benefits of Homeownership

National manufactured home lender provides customers with analysis of renting vs. buying

Read Full PostRead - Eye Icon
Mergers and Acquisitions Gain Momentum in European Medical Device Sector
M&A
14/04/2015Mergers and Acquisitions Gain Momentum in European Medical Device Sector

The contribution of US buyers to M&As in Europe is expected to increase, finds Frost & Sullivan.

Read Full PostRead - Eye Icon
Top 10 Strategies to Boost Your Writing Skills for a Successful Business Communication
News
06/10/2023Top 10 Strategies to Boost Your Writing Skills for a Successful Business Communication

Effective business communication largely depends on solid writing skills. Whether you’re writing emails, reports, proposals, or other documents, quality writing can dramatically improve your results and help you succeed. In addition, writing skills are e

Read Full PostRead - Eye Icon
What is harder: accounting or finance?
News
26/01/2022What is harder: accounting or finance?

The career paths that you can join on the basis of a finance degree or an accounting degree can both be rewarding and lucrative with a great deal of job security, so if you are torn between which one you should be studying, the determination could come down to

Read Full PostRead - Eye Icon
The New Solution for the Emerging Healthcare Industry
News
09/08/2022The New Solution for the Emerging Healthcare Industry

TIPS SA, as ‘2022's Leading Healthcare ICT Solutions Company’ for Latin America, has made itself an innovative, ingenuity-powered, and people-first business taking hospitals into the future.

Read Full PostRead - Eye Icon
Top 7 Services Which Will Help Your Marketing Team Flourish in 2023
News
27/02/2023Top 7 Services Which Will Help Your Marketing Team Flourish in 2023

Are you concerned about expanding your company because you’ve put quite some effort into it? Well, if you are, you’re not making a wrong decision in doing so.

Read Full PostRead - Eye Icon
relayr Completes Second Strategic Acquisition
Innovation
28/02/2017relayr Completes Second Strategic Acquisition

relayr, the global enterprise Internet-of-Things (IoT) platform provider, announces its second strategic acquisition within two months.



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