© 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
Sight and Sound Success
Innovation
11/03/2021Sight and Sound Success

The value of the audio-visual market has increased dramatically over the last few years. Companies in every industry have taken on the amazing potential of this technology, which has led to the rise of companies specializing in this field. The most impressive

Read Full PostRead - Eye Icon
Protecting Clean Energy: The Importance of Bird-Proofing Your Company’s Solar Panels
News
03/11/2023Protecting Clean Energy: The Importance of Bird-Proofing Your Company’s Solar Panels

Solar panels are a great way to get the energy your office needs without using as many natural gases. Being able to get your own energy clean and long-lasting is good for both your company and the environment. Even though solar panels are a clean and long-last

Read Full PostRead - Eye Icon
Early Development Programmes Vital For Data Centre Skills Shortage
Innovation
22/05/2024Early Development Programmes Vital For Data Centre Skills Shortage

In the current digital landscape, the demand for professionals is rapidly increasing while the skills gap is also widening.

Read Full PostRead - Eye Icon
Tremendous Technological Triumph
Innovation
29/04/2020Tremendous Technological Triumph

Technology is currently playing a major role in society, changing the way in which people live and work. It’s a time of immense choice, which can be overwhelming. Leading the way forward in making the complex simple is AdEPT, with a talented team guiding com

Read Full PostRead - Eye Icon
Taylor Wessing Advises THMMS’s Acquisition of EliteMedianet
Legal
13/08/2015Taylor Wessing Advises THMMS’s Acquisition of EliteMedianet

Taylor Wessing Advises THMMS's Acquisition of EliteMedianet

Read Full PostRead - Eye Icon
7 Ways To Grow Wealth by Saving Money on Everyday Expenses
News
06/04/20227 Ways To Grow Wealth by Saving Money on Everyday Expenses

When we spend money day-to-day, we rarely focus our efforts on saving money here and there. Most people buy without a conscious effort to save for the future. However, if you take a few steps to save money gradually on everyday expenses and purchases, it will

Read Full PostRead - Eye Icon
Prepare for the Future with These Investment Strategies
Finance
01/10/2021Prepare for the Future with These Investment Strategies

Don’t just leave your money sitting in your bank account to earn hardly anything in interest. Instead, check out the investment options that are outlined in this infographic from HotForex, and continue reading to learn more.

Read Full PostRead - Eye Icon
A Distinguished Leader in Financial Restructuring
Finance
12/10/2023A Distinguished Leader in Financial Restructuring

As one of the ‘Big Four’, KPMG hardly needs an introduction. The company represents a leading player on the world stage, with thousands of employees working diligently to deliver truly distinguished results – together, for better. It’s a company that u

Read Full PostRead - Eye Icon
4 Essential Components of Power Plant Maintenance
Innovation
25/11/20214 Essential Components of Power Plant Maintenance

Power plant maintenance aims at supporting a smooth workflow in a power plant. It involves procedures such as routine inspection, equipment adjustment, repair or replacement, and general systems integration and monitoring.



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