FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
47 499.18

Inflation grips Britain: Up 2.5% over last year

14 July 2021

Information from the Office of National Statistics has shown that inflation, a huge bugbear which has raised its head over the past few months, is most certainly an unpleasant reality in the United Kingdom. Inflation has risen 2.5% year on year, having increased once again in June, outstripping economists' predictions and exceeding the government's target of 2%.

The Consumer Price Index has shown a rise of 2.5% in 12 months ending June this year, which has been largely a result of the devastating lockdowns inflicted on the country by the government. This now stands inflation at its highest point since August 2018, and the cost of most essential items such as food, clothes and transport are all now at high levels.

Interestingly, the GBPUSD pair has remained stable, and is at 1.39 today, having not displayed much volatility for a long period of time. The British inflation issue is not affecting the Pound's price against the Dollar, likely because the United States has also been riding a wave of inflation, with levels increasing to a 13 year high in June this year.

In the US, consumer prices increased by 5.4 per cent in the year to the end of June, up from 5 per cent the previous month, marking the largest increase since August 2008. The Office of National Statistics' Deputy National Statistician for Economic Statistics Jonathan Athow today made a public statement, saying "The rise was widespread, for example coming from price increases for food and for second-hand cars, where there are reports of increased demand."

"Some of the increase is from temporary effects, for example, rising fuel prices which continue to increase inflation, but much of this is due to prices recovering from lows earlier in the pandemic. "An increase in prices for clothing and footwear, compared with the normal seasonal pattern of summer sales, also added to the upward pressure this month" said Mr Athow.

In terms of category, the least affected by the inflation increase has been the health sector, whereas alcohol and tobacco have been slightly affected, yet the most affected services and products have been the essential ones such as housing, furniture, transport and clothing and footwear. Traders in Willesden Market in north-west London interviewed by the BBC said they were feeling the effects of those supply shortages, with their wholesale costs going up sharply.

However, they added that they were finding it difficult to pass on those costs to their customers, who were unwilling or unable to pay more. Despite this, the GBPEUR pair has experienced the rise of the pound against the Euro over the past few days and this morning stood at a 5 day high before settling slightly lower at 1.17, so currency volatility is not a feature at all.

Risk warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.5% of retail investor accounts lose money when spread betting or trading CFDs with ETX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money.
Authorised and regulated by the Financial Conduct Authority, with Firm Reference Number 124721.


Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Are investors sleeping on systematic risk in China?
Are investors sleeping on systematic risk in China?

It’s time to talk about China. The situation is getting dicier as the nation’s second-largest property developer - Evergrande - is on the verge of default. Trading in the company...

16 Sep 2021

Sentiment sours as the S&P 500 tests key support
Sentiment sours as the S&P 500 tests key support

We head to quadruple witching in the US on Friday and notably options expiration (OPEX), and the weakness we see time and again in the week before seems...

15 Sep 2021

Dollar unscathed by soft inflation, equities resume slide
Dollar unscathed by soft inflation, equities resume slide

Dollar takes little damage despite signs US inflation has peaked - Wall Street resumes selloff - all eyes on China contagion risks - Canadian data coming up ahead of elections, gold wakes up...

15 Sep 2021

US inflation under the microscope
US inflation under the microscope

With the Fed having almost locked in a November taper announcement, the question now is whether Chairman Powell will use next week’s policy meeting to give the markets...

14 Sep 2021

Forex Forecasts

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.