Sweden's Inflation Slows In January

Sweden's Inflation Slows In January

The NBS said consumer price inflation rose by 2.5% from a year earlier, a figure that was higher than the 2.1% increase of December and market expectations for an acceleration to 2.4%. Retail sales rose 0.4 percent, exceeding the median estimate of economists for a 0.1 percent rise, Commerce Department data showed.

Consumer prices in the United States jumped in January by the most since 2013 as higher oil prices continue to make their impact around the world.

The Consumer Prices Index - the Bank of England's official inflation benchmark - rose from 1.6% to 1.8% in January, pushing closer to the Bank's 2% inflation target.

"We've all been relieved that average hourly earnings have, broadly speaking, been improving, but with inflation now ticking higher and the average workweek having fallen over the a year ago, consumers may not be as well off as we hoped", he said.

"The costs of raw materials and goods leaving factories both rose significantly, mainly thanks to higher oil prices and the weakened pound".

Deputy chief investment officer Chris Leyland said, 'Around £269bn is sitting in cash ISAs with Inflation at 1.8% compared to average high street cash ISA rates of 0.82%.

Inflation is trending higher as prices for energy goods and other commodities rebound as global demand picks up. A separate report from the Labor Department showed hourly earnings adjusted for inflation fell 0.5 percent in January from the prior month, the biggest drop since August 2012, and were unchanged over the past 12 months.

WPI inflation figures on Tuesday revealed that it had jumped to a 30-month high of 5.25% in January due to firmer global crude oil prices, which were up 78.8% year on year (yoy) last month on a smaller base of $30 per barrel in the same month last year.

The U.S. central bank slashed interest rates to almost zero during the recession in a bid to boost economic growth, but most economists say the recovering U.S. economy no longer needs such support.

British inflation reached a 2½-year high in January as rising fuel prices bumped up the cost of living.

As per data, WPI inflation in vegetables, at (-) 32.32 percent in January, saw deflationary pressure for the fifth consecutive month.

The yield on the 10-year Treasury note rose to 2.51 percent Wednesday, up from 2.47 percent late Tuesday. But the monthly fall matched economists' expectations.

Williamson pointed to the build-up in pricing pressures which were likely to further drive up inflation, with the fall in the pound following the Brexit vote having sparked the steepest rise in manufacturing costs in 25 years.

Related:

Comments


Other news