Rachel Reeves is to blame for the 3.5% inflation spike
There is no positive spin to be put on this morning's inflation figures, which show the Consumer Prices Index (CPI) rising from 2.6 per cent to 3.5 per cent in a single month. If you want to do the trick of stripping out energy and food prices to arrive at so-called 'core' inflation (how you can have a cost of living index which excludes two of the biggest costs faced by households defeats me) the picture is even worse – core inflation is even higher, at 4.5 per cent.
If you want to use the government's preferred measure, CPIH, which includes an element of housing costs, then that too is higher than CPI, at 4.1 percent. Housing costs, energy costs, food, transport – all are going up – with just a small drop in prices of clothing and footwear, and furniture.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
10 hours ago
- Reuters
India May inflation likely cooled to 3% as food price pressure eases
BENGALURU, June 9 (Reuters) - India's consumer inflation rate likely eased to a more than six-year low of 3% in May thanks to a favourable base and a further moderation in food prices, a Reuters poll forecast, supporting last week's larger-than-expected interest rate cut. On Friday the Reserve Bank of India (RBI) stunned financial markets by slashing its key policy rate by 50 basis points, double what was predicted, to boost economic growth as inflation has remained subdued. The central bank, which targets inflation in the middle of its 2-6% range in the medium term, also shifted its policy stance to 'neutral' from 'accommodative'. A snap Reuters poll after the decision found the RBI was likely done with cutting rates, wrapping up one of its shortest and shallowest easing cycles in more than a decade. The June 5–9 Reuters poll of 50 economists, published on Monday, forecast inflation measured by the annual change in the consumer price index (CPI) fell even further to 3.00% in May from 3.16% in April. That would mark the fourth consecutive month below the RBI's 4.0% medium-term target, the longest such streak in nearly six years. It would also be the lowest inflation rate since April 2019, welcome news for many Indian households where food takes up a significant share of monthly expenses. Forecasts for the data due on Thursday at 1030 GMT ranged from 2.7% to 3.7%. "We are expecting a cooling of inflation to 3% on a combination of a favourable base effect and... sequential moderation in prices of cereals and pulses even as most other segments started to strengthen," said Kanika Pasricha, chief economic advisor at Union Bank of India. "Prices of most food segments though continue to slide but the pace of correction is losing ground," she added. While concerns over widespread heatwaves raised fears of an inflation spike last month, a healthy harvest and the early arrival of monsoon rains helped ease those risks. "Even though there were heatwaves, I think the early monsoons across the country are likely to have cooled things off... most of the categories of food inflation seem to be contained," said Indranil Pan, chief economist at Yes Bank. Core inflation, which strips out volatile food and energy items and is seen as a better indicator of domestic demand, was expected to have edged up to 4.20% year-on-year in May, from an estimated 4.00%-4.10% in April, the poll showed. India's official statistics agency does not publish core inflation data. Wholesale price index (WPI)-based inflation likely dipped to a 14-month low of 0.80% in May from 0.85% in April, the survey found.
Daily Record
12 hours ago
- Daily Record
People on New State Pension could be due up to £971 each month from next April
The annual uprating will be announced at the Autumn Budget but pensioners can start calculating the Triple Lock uplift now. Income tax rises for Scots in April - how the changes affect you Nearly 13 million State Pensioners across Great Britain, including over one million living in Scotland, should start to keep an eye on the Consumer Price Index (CPI) inflation rate as it forms part of the Triple Lock measure which determines the annual uprating for the contributory benefit. The latest figures from the Office for National Statistics (ONS) show UK inflation increased to 3.5 per cent in April, up from 2.6 per cent in March. Annual growth in employees' average wages for regular earnings (excluding bonuses) was 5.6 per cent and total earnings (including bonuses) was 5.5 per cent. Under the Triple Lock measure, State Pensions increase each year in-line with whichever is the highest of average annual earnings growth from May to July, CPI in the year to September or 2.5 per cent. The New and Basic State Pension increased by 4.7 per cent in April, which means someone on the full New State Pension currently receives £230.25 per week, or £921 every four-week pay period. Those on the full Basic State Pension receive £176.45 each week, or £705.80 every four-week pay period. State Pension uprating predictions for 2026/27 The Triple Lock is currently on track to be determined by the earnings growth element which is currently at 5.5 per cent. However, this figure may go up or down and isn't the final metric that will determine the level of uprating. The next CPI figure will be published by the ONS on June 18. That being said, a 5.5 per cent increase on the current State Pension would see people receive the following amounts. Full New State Pension Weekly: £242.90 (up from £230.25) Four-weekly pay period: £971.60 (up from £921) Annual amount: £12,630.80 (up from 11,973) Full Basic State Pension Weekly: £186.25 (up from £176.45) Four-weekly pay period: £744.60 (up from £705.80) Annual amount: £9,679.80 (up from £9,175.40) The annual uprating won't be confirmed until the Autumn Budget, but pensioners - and those due to retire next year - can start to plan their finances by following the Triple Lock measurements. The September CPI figure will be published in mid-October, but the wages growth figure is usually published in August. State Pension and tax The Labour Government confirmed earlier this year that the Personal Allowance will remain frozen at £12,570 until April 2028. If the New and Basic State Pension increased by the lower measure of the Triple Lock (2.5%), it would see the full New State Pension exceed the income tax threshold by nearly £79 in the 2027/28 financial year (£12,578.80). While the amount of State Pension to be taxed may seem relatively small - tax is only paid on the amount over the Personal Allowance - older people with other income streams could find themselves having to part with more cash to pay a tax bill - if it's not automatically deducted from private or workplace pensions through PAYE. And remember, that figure is based on the lower measure of the Triple Lock. Using the current projections, more pensioners could be dragged into the retirement tax net sooner, especially if they have additional income through a private or workplace pension. What is taxed Guidance on states: 'You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax rates. Your total income could include: the State Pension you get - Basic or New State Pension Additional State Pension a private pension (workplace or personal) - you can take some of this tax-free earnings from employment or self-employment any taxable benefits you get any other income, such as money from investments, property or savings Check if you have to pay tax on your pension Before you can check, you will need to know: if you have a State Pension or a private pension how much State Pension and private pension income you will get this tax year (April 6 to April 5) the amount of any other taxable income you'll get this tax year (for example, from employment or state benefits) You cannot use this tool if you get: any foreign income Marriage Allowance Blind Person's Allowance Use this online tool at to check if you have to pay tax on your pension. The full guide to tax when you get a pension can be found on here.
Reuters
4 days ago
- Reuters
Thailand May headline CPI falls 0.57% y/y, above forecast
BANGKOK, June 6 (Reuters) - Thailand's headline consumer price index (THCPI=ECI), opens new tab dropped 0.57% in May from a year earlier, after the previous month's annual decrease of 0.22%, the commerce ministry said on Friday. The figure compared with a forecast fall of 0.80% in a Reuters poll, and was below the central bank's target range of 1% to 3%. The core CPI (THCPIX=ECI), opens new tab, which excludes volatile food and energy prices, was up 1.09% in May from a year earlier, compared with a forecast rise of 0.94%.
