2011年4月14日星期四

Surprise fall in inflation to 4%

Last updated 12 April 2011 to 11: 42 GMT Darren Morgan of the ONS said food prices consumers a record amount between February and MarchThe UK prices index (CPI) annual rate of inflation dropped to 4%, down 4.4% in February.

You fall was on a data set of each month in the price of food and non-alcoholic drinks, which was compared with an increase in fall 1.4% in the last year.

Retail prices index (RPI) inflation - which includes interest mortgage payments - fell to 5.3% from 5.5% in February.

Autumn facilitates pressure on the Bank of England to raise interest rates.

CPI is again recorded at the level in January.

The pound fell immediately after the figures to $1.6238 were announced, as investors decided almost 1.5 cents against the dollar, the Bank was unlikely to raise rates as soon as she had previously thought.

Against the euro, you fell a cent to 1.1237 euros.

More discounts

The Office for national statistics (ONS) said that their prices had reduced supermarkets in March.

The British Retail Consortium (BRC) said increased competition at a time when consumers less meant margins were spending were squeezed is.

A record 40% of supermarket sales now were discounted or a promotional offer, it has a part of it.

Read the main plot of
households so expressed, it was a mystery, as companies in all of this input prices could pass every month. In addition to the bad news from retailers taken, could today's numbers, could, suggest that consumers begin to say no. "
end quote image of Stephanie Flanders Stephanie Flanders Economics Editor, BBC News fruit prices fell by 4.7% and bread and deleted by a record last grain 2.6% compared to March the year", the ONS said.

Falls in the price of air flights, games and toys helped also to compensate for in energy costs and cars is increasing, it has.

But analysts warned that the rate of inflation could start to make again more quickly in the coming months.

The Bank itself expects that the inflation rate to pick up for the rest of this year, potentially climb as high as 5%, before he back to its target data rate of 2% by end of next year.

Interest rates

Economists had expected the CPI rate to stay at 4.4% in March, or perhaps even slightly increase.

"It is not only a surprise, it is a very welcome surprise," said Philip Shaw at the Investec.

But although lower than expectations, inflation is still twice the Bank of England target heart rate, and was for 16 months with at least one percentage point of aim.

This led to calls for the bank interest rates - the policy instrument to combat the rising prices raise used.

"There is little cause for celebration as the inflation rate remains above the average and further significant pressure on disposable household income and diskretion?re spend," said Neil Saunders, Director of consulting research group verdict.

Last week monetary policy Committee (MPC) gave prices to a record low of 0.5% of the Bank for the 25th consecutive month.

Next week it will show how members voted.

Graph showing UK inflation ratesMembers not agree

Three of the MPC members demanded an increase in the prices at last month's meeting.

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the prospect of a rate increase significantly today surprised declined may fall in UK CPI "
citing end James Knightley ING and some other economists have argued that prices must rise to fight the rising prices", consumers are being eroded purchasing power.

Argue those members taking place for prices, supported by a number of leading economists and business groups, that a rise in UK rates could endanger fragile economic recovery, in particular in the light of contraction of the economy 0.5% in the last three months of the previous year.

You say that high inflation due to the temporary and external factors, such as the recent rise in the value added tax and high commodity prices, and has even on wage increases, which would provide longer-term upward pressure on prices reflects.

The increase which is VAT entered calculations at the beginning of next year in January in force, and by inflation.

They insist, therefore, that given time, inflation will fall way out of their own accord, without the need to raise short term rates.

Their determination to keep rates on hold for more could strengthen the latest ONS figures.

"The prospect of a rate increase significantly today surprised declined may fall in UK CPI," said James Knightley at ING.

He added that record in love could help itself in high street sales in March, the BRC reported on Tuesday, also, the opinion of the Committee in the direction of keeping prices again vary.


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