British inflation speeds down in February

British inflation speeds down in February

In February, British inflation turned to be weaker than anticipated because the impact of the 2016 Brexit vote vanished, relieving some of the squeeze on British households' spending power, although doing little to alter bets on a BoE rate lift in May.

According to official data, consumer prices inched up by 2.7% the previous month, which is the weakest ascend since July of 2017 and down from a 3% soar in January.

The figure happened to be below the median estimate of 2.8% in a Reuters survey of market experts.

Market participants told that the softening of inflation won’t probably challenge the BoE's message from February that interest rates will most likely require going up more rapidly than it had previously anticipated.

British inflation has managed to surpass what’s observed in France and Germany. What’s more – it’s even higher than in America, where the Fed seems set to proceed with its series of interest rate lifts this week.

The UK currency headed south after the report, although held on to most of its 1% rally from Monday, when the United Kingdom had a Brexit transition deal secured from the European Commission. The BoE considers this fact to be another reason to lift rates in May.

By the way, Tuesday's report also dropped a hint at less pressure on consumer prices.

Moreover, British manufacturers ramped up the prices they charged since November 2016 because the cost of their raw materials, mostly imported inched up 3.4%. That’s way down from a maximum annual jump of approximately 20% in January 2017.

In the United Kingdom inflation headed north to 3.1% in November, underpinned by voters' June 2016 revolutionary decision to break up with the European Union that hammered the value of the UK currency and made imports less affordable.

 

Similar

News to trade on December 11

Today the British PM Theresa May plans to discuss the current conditions of the Brexit deal with the European leaders. Is it happening again? What else will move the world of Forex today? Read the news!

China property will decelerate in 2019

In 2019, China's massive property market is anticipated to speed down further, with smaller price leaps as well as diving home sales contributing to pressure on the world's number two economy, according to a Reuters survey…

Japanese economy contracts most for four years

In the third quarter, the Japanese economy shrank the most for more than four years due to the fact that Japanese companies reduced spending, thus threatening to affect the investment outlook next year because the export-reliant Asian country grapples…

Latest news

Greenback edges down

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera