Will the world economy avoid an inflationary bust? March 23, 2022 Today’s high inflation is being compared to the 1970s. However, robust consumer spending, fuelled by pandemic savings, makes for a different set of circumstances. Memories of the 1970s were evoked as the price of Brent crude oil temporarily climbed above $139 a barrel in the wake of Russia’s invasion of Ukraine. That was a period [...]
A ‘policy light’ spending review must still grapple with cost of living woes March 22, 2022 Chancellor Rishi Sunak wants onlookers to pay little attention to Wednesday’s spring statement. Policy-light has been the line from the Treasury. Very few have been tempted into believing the Chancellor will sit on his hands and Sunak’s announcements tomorrow are set to finally reveal his true preference for the level of state intervention in the [...]
Rampant inflation to push tax bills £12bn above forecasts March 16, 2022 Rampant inflation is set to deliver an even harsher hit to households’ tax bills than first thought, reveals fresh analysis released today. A higher cost of living will result in a £12.5bn larger tax hike, piling more pressure on Brits’ already stretched finances, according to the Institute for Fiscal Studies (IFS). Chancellor Rishi Sunak’s decision [...]
Interview: Former rate setter Andrew Sentance on Governor Bailey’s ‘off the cuff’ remarks and where the BoE went wrong March 16, 2022 It is often a mark of how dire an economy’s situation is when incremental rises in interest rates hit the front pages. The worst cost of living crunch in a generation has, however, sent the Bank of England to the front of many households’ minds. Those outside of the City care less about the vagaries [...]
Roaring jobs market steps up case for another Bank of England rate hike March 15, 2022 A roaring jobs market in the UK is stepping up the case for another rate hike by the Bank of England on Thursday. Strong demand for workers rubbing up against weak labour supply is intensifying inflationary pressures in the jobs market, demonstrating the UK economy is ready for more rate hikes, according to economists. The [...]
We need to build up Britain’s piggy bank and help young workers saving for the future March 15, 2022 Ten years ago, a government policy came into law that would go on to financially benefit over 10 million people in the UK, giving them a greater stake in our economy and more security later in life. Automatic enrolment is an untold, underappreciated success story that we should look to build on and expand. For [...]
Wages continue to surge amid tightening jobs market March 10, 2022 Strong competition for workers amid a tight jobs market is accelerating starting pay at near record highs, reveals a fresh survey published today. A shortage of available workers is driving businesses to hike pay to out muscle competitors from poaching top talent, according to research from the Recruitment and Employment Confederation (REC) and KPMG. Starting [...]
Brits’ inflation expectations climb to record high piling pressure on BoE to launch more rate hikes February 28, 2022 Britons’ expectations for inflation in a decade’s time is running at a joint record high, heaping further pressure on the Bank of England to continue its rate hike cycle. Households think the cost of living will land at 4.1 per cent in ten years’ time, up from 3.8 per cent last month, the joint highest [...]
UK inflation to trend higher as firms hoist prices amid cost barrage February 28, 2022 Inflation will trend even higher in the coming months driven by UK businesses lifting prices to cope with intensifying wage pressures, reveals a fresh survey published today. Nearly half of firms are expecting to hike pay at least one per cent over the coming year, leading to them raising prices to protect margins, according to [...]
Ukraine war day four: Russian Army enters country’s second-largest city as fighting continues February 27, 2022 Russian troops have entered Ukraine’s second-largest city of Kharkiv and fighting is under way in the streets, Ukrainian authorities have said. Oleh Sinehubov, head of the Kharkiv regional administration, said Ukrainian forces are fighting Russian troops in the city and asked civilians not to leave their homes. Russian troops approached Kharkiv, which is located about [...]