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

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

"But there are signs that the dynamics in the labour market are finally driving some level of domestically generated inflation".

The consumer price index rose 0.5 percent from the previous month, above the median estimate of economists for a 0.3 percent increase, a Labor Department report showed Wednesday.

The single biggest contributor to the unexpectedly high increase in the Core CPI (0.3% vs.an expected 0.2%) was a big jump in the price of apparel.

The market is down roughly 7 percent overall from its January 26 high.

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

In terms of the United Kingdom nations, average prices in England rose 5.0 per cent to a typical £244,000; Wales saw an increase of 5.4 per cent to stand at £154,000; in Northern Ireland prices grew 4.3 per cent to £130,000.

The US snapback looks set to spill over into this morning's European open and while further gains are a welcome development, they remain small potatoes in the context of recent losses, to paraphrase out of context, recent comments by William Dudley of the New York Fed.

On a month-on-month basis, the core sub-index increased by 0.68 per cent in January 2018 was higher from 0.51 per cent recorded in December.

Red Raiders No. 3 seed in NCAA bracket preview
The committee is no longer using RPI top 50, top 100, top 200, and 201 and above as five dividing categories. The Sooners will be back in action Tuesday night when they face Texas Tech at 6 p.m.

Consumer price index (CPI) rose 5.07 percent in January from a year earlier, data released by the Ministry of Statistics showed on Monday.

The year-over-year increase in prices was moderated by sharp price increases in January 2017, when headline inflation rose 0.6%, the sharpest rise in four years. It was trading at US$1.3892 by 1650 GMT, up 0.4 per cent on the day, having climbed more than six per cent against the dollar over the past three months.

Today's inflation report shows prices rising across a broad spectrum of categories, not just energy. Meanwhile, soft retail sales are probably the result of two factors - one, adverse weather shuttered sales at the start of the month (e.g. motor vehicles -1.3%); two, January may be a "pause to refresh" after a gangbusters 4Q.

"It seems domestically driven inflation could seamlessly take over from the sterling-related price rises we have seen since the Brexit vote". Higher borrowing costs slow economic growth.

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).

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

The central bank's preferred gauge of inflation - a separate figure based on consumer purchases and issued by the Commerce Department - has mostly missed its 2 percent goal in the past five years.

Related Articles

  • Freezing rain threat Sunday

    Freezing rain threat Sunday

    Forecasters warn that the storm could cause flash flooding on roadways, low-lying areas and areas near streams, creeks or rivers. The National Weather Service in Buffalo said travel may become hard due to mixed precipitation resulting in icy conditions.
    USA  dismisses fears of wider war in Syria

    USA dismisses fears of wider war in Syria

    This latest attack raises questions about whether USA troops might exchange fire with Russian forces, which back Assad. A US -led coalition in Syria killed more than 100 troops allied with Syrian President Bashar al-Assad on Wednesday.
    Brian McBride advises Christian Pulisic to choose Liverpool over Man United

    Brian McBride advises Christian Pulisic to choose Liverpool over Man United

    Liverpool and United are not the only clubs hoping to count Pulisic among their ranks in the future. As for Pulisic, this certainly doesn't seem like a smart move for him.
  • American Mikaela Shiffrin has another event postponed as weather halts skiing

    American Mikaela Shiffrin has another event postponed as weather halts skiing

    American star Mikaela Shiffrin is poised to become the first alpine skier to successfully defend an Olympic slalom title. It's the third time in four days an alpine skiing race was shelved because gusts made it too risky for competition.
    OxyContin Maker Purdue To Stop Promoting Opioids In Light Of Epidemic

    OxyContin Maker Purdue To Stop Promoting Opioids In Light Of Epidemic

    Instead, any questions doctors have will be directed to the Stamford, Connecticut-based company's medical affairs department. It later acknowledged that its promotions exaggerated the safety of the drug and minimized its risk for addiction.
    Amsterdam to London fast trains start in April at €40 per seat

    Amsterdam to London fast trains start in April at €40 per seat

    This means passengers will have to change at Brussels, leaving the return journey time at an estimated four hours and 49 minutes. It will target potential converts by saying a London-Amsterdam Eurostar journey emits 80% less carbonthan the equivalent flight.
  • Helicopter collapse in Grand Canyon causes three fatalities

    Helicopter collapse in Grand Canyon causes three fatalities

    The helicopter had at least seven people on board when it crashed, FAA spokesman Allen Kenitzer said, citing local authorities. Bradley said rescue crews were hampered by high winds and darkness Saturday night along with rugged terrain.
    FireEye Stock Puts the Squeeze on Shorts After Earnings

    FireEye Stock Puts the Squeeze on Shorts After Earnings

    The company had revenue of $202.30 million during the quarter, compared to the consensus estimate of $193.74 million. Wealthcare Advisory Partners LLC purchased a new position in FireEye during the third quarter worth about $129,000.
    Another ice warning for Cornwall

    Another ice warning for Cornwall

    A status yellow warning, issued by Met Éireann , says strong winds with gusts up to 110 kph are possible from 3pm this Saturday. Tomorrow will be a colder and brighter day for many with spells of sunshine. "Snow will settle on higher ground".
  • Newcastle United fans will love Islam Slimani's latest comments

    Newcastle United fans will love Islam Slimani's latest comments

    A rising wage bill for players has cut into the latest quarterly profits from Manchester United. Honestly, I've always felt attractive matches but hard matches.
    Aguero Scores Four As Iheanacho, Ndidi Go Down With Leicester At City

    Aguero Scores Four As Iheanacho, Ndidi Go Down With Leicester At City

    The brilliant Belgian may not have scored for Manchester City but he was superb and created three goals for Pep Guardiola's side. Leicester will once again be without Riyad Mahrez who's head isn't right at the moment according to manager Claude Puel .
    Leak of Stale iOS Source Code Could Trigger Fresh Problems

    Leak of Stale iOS Source Code Could Trigger Fresh Problems

    Apple recently began using Secure Enclave processors that ensure greater security and made jailbreaking nearly obsolete. In a statement, the company said the security of the iPhone did not rely on "the secrecy of its source code".