Daily Trends Now
Daily Trends Now


UK firms plan biggest pay rises since 2008, boosting rate hike case

UK firms plan biggest pay rises since 2008, boosting rate hike case

Tuesday's numbers showed consumer price inflation (CPI) held at an annual rate of 3.0 per cent in January, unchanged from the month before and above a consensus forecast of 2.9 per cent.

The dogs that didn't bark were the U.S. dollar, virtually unchanged after the number, and the real (inflation-adjusted) USA 10-year yield, which is slightly down.

Economists were pencilling in a drop to 2.9%.

US stocks opened lower as fears of firming inflation intensified after a report showed consumer prices in January rose faster than expected.

"But in fact the rate remained at 3.0%, with price rises driven by clothing, footwear and recreational goods/services".

If the market believed that the CPI surprise represented a trend rather than a blip, it would bid up real yields, expecting the Federal Reserve to raise interest rates in the future (expectations about the future federal funds rate are the big near-term determinant of real yields).

"The BoE's rhetoric echoed that of September's meeting minutes, which preceded last November's rate hike, and it now looks like the next rise may well happen in May".

"Indeed Bank of England policymakers said last week they'll try and bring inflation back to target more quickly than previously expected, which means rates could rise faster and further than anticipated".

ONS senior statistician James Tucker said: "Headline inflation was unchanged with petrol prices rising by less than this time previous year".




'However, the cost of entry to attractions such as zoos and gardens fell more slowly. Higher borrowing costs slow economic growth.

At the pumps, petrol prices rose by 1.1p per litre on the month to 121p per litre, while diesel rose 1p to 124.5p per litre.

The consumer food basket inflation eased a little to 4.7 per cent in January.

Other items contributing to the gain in CPI included rents and owners' equivalent rent, which both rose 0.3 percent from December; medical care, up 0.4 percent; and motor vehicle insurance, which advanced 1.3 percent, the most since 2001. Inflation may increase in the coming months due to oil price hike and food inflation not coming down.

Against the euro, the pound was trading flat at 1.12 euros.

The recent market correction started in the U.S., largely driven by its own concerns over rising wages, and a number higher than the 0.3% month-on-month forecast could be taken negatively by the market.

Economists now expect the Monetary Policy Committee to hike rates from 0.5pc to 0.75pc in May.

India's industrial production growth declined again in December to 7.1% from a high of 8.8% in the previous month but the retail inflation bettered in January after a 17-month high in the previous month.

USA bond markets began the week on the back foot after comments at the weekend by Mick Mulvaney the White House budget director that interest rates could spike as a result of the new budget plans.

follow

editors' picks

February 12, 2018
Western's Weather Wrap: Snow Tonight, Sunday Sunshine
The weather service issued a " hazardous weather outlook " about the possibility of some accumulating snow starting Friday . Watch for a rain or snow shower mixing with a pocket of sleet , freezing rain or freezing drizzle through Saturday morning.

February 11, 2018
New snow ice warning issued by Met Éireann
A status yellow warning, issued by Met Éireann , says strong winds with gusts up to 110 kph are possible from 3pm this Saturday. Temperatures in the north will be 8C at their highest, with the south-west enjoying slightly higher temperatures of 12C.

February 10, 2018
Omarosa on Trump White House: 'It's gonna not be OK'
Mathews asks who does have the power to change the president's mind and Manigault-Newman says she doesn't know anymore. She went on to break her silence about what she went through as Trump's Director of Communications.

February 09, 2018
NVIDIA Corporation Stock Soars After Earnings Beat
Toronto Dominion Bancorporation has 227,484 shares for 0.13% of their portfolio. (NASDAQ: NVDA ) opened at $228.80 on Thursday. Oppenheimer & Company Inc bought 84,281 shares as the company's stock declined 2.40% while stock markets rallied.

February 09, 2018
Detroit Pistons add Jameer Nelson, James Ennis before trade deadline
Nelson is playing his 14th season in the National Basketball Association , averaging career lows in most major stat categories. He later landed with the New Orleans Pelicans and became a trade chip in return for Nikola Mirotic .

February 08, 2018
Probe ordered after quack infects 46 with HIV in UP
The state government has registered a case against the fake doctor, Rajendra Kumar, and has intensified efforts to arrest him. On inquiry, locals said that people used to go to a quack for treatment who used to use a single syringe on everyone.

February 07, 2018
Upcoming PlayStation 4 update includes play time management
This is the type of content most users will not return to, so it's nice to know they don't ever have to see them in their Library. One of the primary complaints on the original Gold Headset was that the foldable hinges were flimsy and would break over time.

February 05, 2018
Streaker runs onto fairway at PGA Tour event in Arizona
If you know anything about the Waste Management Phoenix Open , you know how WILD things get on that 17th hole. Fowler wore a pin on his hat with a picture of Griffin Connell, the area boy who died January 23 at age 7.

February 04, 2018
Twitter is destroying Raheem Sterling after his Unbelieveable miss v Burnley
Burnley responded well to going behind as Mee was found unmarked 12-yards out and volleyed at goal but Ederson saved well. Raheem Sterling suffers nightmare miss.

February 03, 2018
Woodson for Black History Month
Planning for Black History Month began during the latter half of the fall semester with finalizations beginning in January. Promoting Woodson's important contributions to academia and American culture is central to Burnis R.