Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020
News Every Day |

UK inflation hits lowest level since 2015 after government's dining-out scheme cuts prices at restaurants

Bank of England
  • UK inflation hit a near five-year low in August, the Office for National Statistics (ONS) said Wednesday. 
  • August's Consumer Price Index 12-month rate fell to 0.2% in August, down from 1% in July. 
  • The drop was partly fueled by the government's Eat Out to Help Out scheme, which slashed prices for dining out at restaurants and cafes, the ONS said.
  • Visit Business Insider's homepage for more stories.

UK inflation hit a near five-year low in August, in part thanks to a government scheme that cut the price of dining out.

The Office for National Statistics (ONS) said the Consumer Price Index (CPI) 12-month rate was 0.2% in August, down from 1% in July.

It is the lowest reading since December 2015. 

The ONS said the government's Eat Out to Help Out scheme, which gave diners 50% off food up to a cap of £10 during August, contributed to the rate falling. Other downward contributions came from reduced air fares and the falling price of clothes. 

The results come after UK unemployment rose to a two-year high of 4.1% in August, up from 3.9% in the previous three-month period.

Read more: MORGAN STANLEY: Buy these 6 stocks poised for gains as the economic recovery continues and Congress mulls more coronavirus stimulus

"The UK has dodged a deflationary bullet and avoided the fate of the Eurozone, which slipped into deflation of 0.2% in August," said Richard Berry, founder of goodmoneyguide.com.

The Bank of England's Monetary Policy Committee is due to announce its next interest rate decision on September 17, and most market watchers expect August's inflation reading to have limited impact on the central bank's policy-making. 

"As a result the Bank of England is unlikely to be bounced into knee-jerk action at this week's Monetary Policy Committee meeting," Berry said. "The prospect of business as usual on monetary policy will soothe market nerves and has set UK stocks on course for another strong day."

Read more: Morgan Stanley pinpoints the most attractive opportunity it sees for investors as a new bull run takes shape — and shares 3 strategies for generating market-beating returns

Naeem Aslam, chief market analyst at Avatrade, said: "The inflation numbers have largely moved because of the government Eat Out scheme and this is the reason that we have not seen much of the movement in the Sterling price. Moreover, today is all about the FOMC, and therefore, traders are unlikely to bet big ahead of this key event."

But Sam Cooper, vice president of market risk solutions at Silicon Valley Bank, said the 0.2% rate "will provide further argument for the BOE to ease policy further should headline inflation continue to remain stubbornly below the central bank's 2% target."

The UK's FTSE index is down 0.3% as of 3:54 a.m. ET. 

Read the original article on Business Insider


Read also

Koch-backed advocacy group launched a 'full-scale' campaign to push Amy Coney Barrett's Supreme Court confirmation

Can Trump-Biden & Pence-Harris Moderators Tip the Balance in Favour of One Contender?

Towie’s Kelsey Stratford breaks down in tears as she discusses baby brother’s death and sister’s life-limiting disease



News, articles, comments, with a minute-by-minute update, now on Today24.pro




Today24.pro — latest news 24/7. You can add your news instantly now — here