News Worms
News Worms

United Kingdom inflation rises less than expected, producer prices soar

United Kingdom inflation rises less than expected, producer prices soar

Despite recognizing that retail inflation has fallen to its lowest level in two years, the Reserve Bank of India (RBI) last Wednesday surprised the market by holding policy rates unchanged and shifting its stance from accommodative to neutral, blaming stubborn non-fuel, non-food inflation.

As per the data, food inflation basket witnessed contraction for the second month in a row with inflation at (-) 0.56 per cent in January as against (-) 0.70 per cent in December.

Figures released by the U.S. Labor Department said on Tuesday its producer price index for final demand jumped 0.6% last month, the biggest hike since September 2012 and followed a 0.2% rise in December.

China's producer prices rose faster than expected in January while consumer inflation quickened, reinforcing views that economic growth is firming up and putting the central bank's policy moves in focus.

More news: CONFIRMED: Newest Mitsubishi SUV Is Known As The Eclipse Cross

On the other hand, the index for fuel and power (weight 14.91 per cent) rose by 4.7 per cent to 201.2 from 192.1 for the previous month due to higher prices of coking coal, aviation turbine fuel, furnace oil, high speed diesel, petrol, bitumen and kerosene.

January also saw its largest 12-month CPI increase in almost five years, rising 2.5 percent over January 2016.

Inflation has been climbing as the fall in the pound - which makes imported goods more expensive - pushes up costs. Excluding shelter costs, which rose 3.5 percent between January 2016 and January 2017, core inflation would've been only 1.3 percent. This was below analysts expectations of a rise to 1.8 percent.

True Potential deputy chief investment officer Chris Leyland warned the rising figure - not matched by rising interest rates from the BoE - would continue to hit savers hardest.

More news: UK Workers back Tata Steel Rescue Plan

The rise in WPI is in contrast to the fall in retail inflation to a five-year low of 3.17 percent in January.

Meanwhile, Yellen's positive remarks regarding the growth of the US Economy boosted optimism on the upcoming USA retail sales and inflation data to be published on Wednesday along with the inflation rate and automobile sales which rose by 0.4% last month. It was the largest monthly increase in over a year.

It had been falling for more than two years amid a supermarket price war, but this now appears to be grinding to a halt. It is just a comment that CPI (consumer price index) excluding food and fuel has been hard to bring down.

More news: Verizon/Yahoo to share breach liability; Discount could be $300M


editors' picks

February 17, 2017
ZTE will showcase a gigabit phone at MWC
The introduction of the forward-looking smartphone , the ZTE Gigabit Phone , marks an important cornerstone for the 5G mobile era. ZTE has said that it's going to unveil the ZTE Gigabit Phone at the Mobile World Congress 2017 later this month.

February 17, 2017
Trump To Appoint Rich Wall Street Guy To Investigate American Intelligence Agencies
According to Trump , the "real scandal" was that "so many illegal leaks [were] coming out Washington". The president has railed against government leaks in the past few days.

February 17, 2017
Palaniswami, a CM with multiple bosses
Sasikala loyalist and strongman of Salem, Edappadi K Palaniswami, has been elected as the AIADMK legislative party leader . Palaniswami held the PWD, highways and minor ports portfolios in the Jayalalithaa and Panneerselvam cabinets.

February 16, 2017
United States ethics office: Investigate Kellyanne Conway for promoting Ivanka Trump products
The only defense the White House has offered for Conway's promotion of Ivanka's products was that it was intended as lighthearted. Shaub gave the White House until February 28 to respond with the findings of their investigation.

February 16, 2017
Future Links With Maroon 5 for New Song "Cold"
Adam Levine is showing off all his good works to Ellen DeGeneres! Future then expounded the message with his snappy verses and in his rap solo.

February 16, 2017
Laidlaw ruled out of Six Nations
Scottish Rugby confirmed the 58-time capped player sustained ligament damage against the French. When we train, they switch in and out with Greig all the time.

February 16, 2017
Qualcomm's new 802.11ax chips will ramp up your Wi-Fi
IT executives are reporting their biggest challenges are capacity and scalability, given the enormous growth of users. The IPQ8074 offers the optimal 11ax configuration to sport unprecedented capacity and coverage to Wi-Fi networks.

February 16, 2017
India launches rocket with record number of satellites
The other satellite, manufactured by Israel-based SpacePharam Inc., carries a lab controlled from the earth by an app. So far, Isro has launched 226 satellites, including 179 belonging to foreign countries.

February 16, 2017
Brock Lesnar's MMA Career Over
Lesnar informed UFC reps of his decision on Tuesday, bringing a chequered career in the promotion to an end at the age of 39. As recently reported in the Inquisitr WWE star Paige was suspended twice in 2016 for breaching the WWE's wellness policies.

February 16, 2017
Retail sales surged in January
There was an upward revision in December sales to 1.0% from the originally reported rise of 0.6%. Excluding motor vehicles and parts total retail sales grew by 0.8% on the month in January.