Latest news with #CPIH
Spectator
21-05-2025
- Business
- Spectator
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.
Fashion United
13-05-2025
- Business
- Fashion United
Consumer card spending increases 4.5 percent in April
The warm weather in the UK and the late Easter weekend boosted essential and non-essential spending in April, according to Barclays' monthly Consumer Spend report. Barclays reports that consumer card spending grew 4.5 percent year-on-year last month, the biggest uplift since June 2023, and above the latest CPIH inflation rate of 3.4 percent, for the first time in over two years. Non-essential spending reached a 21-month high, increasing by 5,1 percent, while essential spending returned to growth after two months of decline, at 3.1 percent. Retail spending rose by 6.8 percent year-on-year, with Barclays adding that every retail subcategory reported growth for the first time since tracking of these categories began in 2019. This included clothing spending up 3.6 percent, while transaction growth hit 6.2 percent. Pharmacy, health and beauty also saw spending growth of 15.1 percent. Barclays also adds that research conducted in late April showed that seven in 10 UK consumers (72 percent) were concerned about the impact tariffs could have on their household finances, although this was an improving picture compared to the start of the month (77 percent). Over a quarter (27 percent) reported trying to save more money each month to build up a buffer, in case prices rise in the future. UK shoppers are also prioritising British-made products, with seven in 10 (68 percent) looking to support UK businesses, while one in eight are willing to pay a premium for British or local products and brands, with this group also adding that they are happy to pay 22 percent more on average. Karen Johnson, head of retail at Barclays, said in a statement: 'April's sunny weather inspired consumers to embrace the best of Britain, with all retail, hospitality, and leisure subcategories in growth for the first time in over five years. 'While the long-term impact of any tariffs on household finances remains to be seen, given Thursday's announcement of a UK/US trade deal, shoppers are demonstrating a commitment to supporting British business, while still carefully managing their money.
Edinburgh Reporter
02-05-2025
- Business
- Edinburgh Reporter
With Inflation Rising and Markets Wobbling — Where Are Smart Investors Turning Now?
In March 2025, the UK Consumer Prices Index (CPI) rose by 3.4%. Rising costs are putting a strain on household budgets and hurting investor confidence. Stock markets are unstable, savings are shrinking, and many conventional investment strategies are ineffective. In this uncertain environment, it's clear that being cautious is not enough. So, where are smart investors looking to put their money now? And what can you learn from their new strategies? As per reports from the Office for National Statistics (ONS), the Consumer Prices Index, including housing costs (CPIH), also increased 3.4% in March 2025. With the value of the pound dropping, smart investors are re-evaluating their alternatives for growth and protection. Here's how they are changing their approach. Photo by Maxim Hopman on Unsplash Inflation Forces a Rethink on Traditional Investments UK inflation hit 3.7% in Q3 2025, mainly due to rising global energy prices and high food costs. This inflation reduces people's purchasing power, making low-yield savings and fixed-rate accounts less appealing. Traditional vehicles no longer offer real benefits. As a result, investors are looking for assets that can keep up with inflation instead of just protecting their capital. Investors Shift Gears Amid Market Volatility Thanks to its global connections, the FTSE 100 has largely stayed steady. In contrast, the FTSE 250, which focuses more on the UK market, has faced significant challenges. In response, many investors are changing their portfolios. There is a clear trend toward buying dividend-paying stocks and investing in safer sectors like healthcare and utilities. These areas are seeing increased investment. This shift shows a growing desire for investments that provide income and lower risk. 'A move toward safety is happening,' said a financial strategist in London. 'In a time when market swings are common, the need for stable income is critical.' Diversification Is No Longer Optional Investors are becoming careful about managing risks. They are diversifying their portfolios with a mix of multi-asset funds and global ETFs that cover different regions and asset types. A recent report from Investment Week shows that UK fund managers feel cautiously optimistic in early 2025 as they deal with geopolitical uncertainty and changing consumer behaviour. More investors are interested in Environmental, Social, and Governance (ESG) portfolios in this environment. These investments match what investors care about and provide a way to grow and stay strong in sectors focused on sustainability. As people look to make a positive impact with their money, ESG portfolios are becoming a wise long-term choice rather than just a passing trend. REITs Offer Property Access Without the Hassle Real Estate Investment Trusts (REITs) are becoming popular with investors who want to invest in property without owning it directly. They are appealing because they offer liquidity and help diversify investment portfolios. Take Edinburgh, for example. Its commercial property market is doing well due to high rental demand and a strong local economy, and many investors are taking notice. One expert states, 'You no longer need to be a landlord to enjoy the benefits of real estate. Without those annoying midnight phone calls, REITs give you the flexibility you want.' This makes investing smarter for everyone! Physical Assets Become a Hedge Against Uncertainty When markets become unstable, physical assets offer stability. Classic cars and rare art pieces are popular investment options. Recently, whisky cask investment has gained recognition as a smart option for those wanting to protect their money from inflation. This trend attracts collectors and new investors looking to explore this unique market. One option quietly gaining interest is whisky cask investment – long considered a niche collector's pursuit, but now entering the mainstream as a slow-growth, tangible alternative. According to a spokesperson from 'Whiskly casks are a good investment in times of high inflation and uncertainty. Whisky casks in particular are appealing to investors who want something physical, historically stable, and entirely separate from the stock market.' These assets are not only visually attractive, but they can also offer significant returns over time. Bonds Make a Comeback Despite Rate Cuts UK bond funds are gaining popularity, attracting £13.7 billion in net inflows, making them the top performers this year among all fund types. Many older investors are returning to NS&I products and Premium Bonds due to their stability and government backing. Recent interest rate cuts have led some to look for higher returns, but bonds still offer a safe option for cautious investors. These financial tools remain a trusted alternative for secure investing in uncertain times. Young Investors Are Prioritising Purpose Over Hype Interest in cryptocurrency is decreasing, and a new trend is increasing among younger investors, especially Millennials and Gen Z. These individuals focus on crowdfunded projects and community-driven businesses. Instead of looking for high investment returns, they invest in companies that match their values, such as ethical startups and local sustainability initiatives. For this generation, it is essential to actively shape the future they want to see and create positive change instead of only watching the market. Final Thoughts – What's Next for Investors in 2025? The old rules of investing are becoming outdated. As inflation changes the economy, savvy investors are changing their strategies for success. The future is not just about getting by; it's about being flexible, finding real value, and creating diverse portfolios. From sustainable funds to whisky casks and dividend-paying stocks, the best strategies combine strength with good returns. As we look toward 2025, remember that getting through tough times is insufficient. You need to change, adjust, and succeed. Don't wait for stability to come back. Change your portfolio now with a strategy focusing on being strong and earning good returns over the long term. Like this: Like Related
Yahoo
26-04-2025
- Business
- Yahoo
UK insolvency numbers fall slightly but economic pressures persist
The number of registered company insolvencies in the UK fell to 1,992 in March 2025, a decrease of 2% compared with February 2025, according to the latest official statistics for the first quarter. Despite the marginal drop, business conditions remain challenging, with persistent inflation, global instability and domestic cost pressures creating a volatile environment for many firms. Stephen Goderski, Partner at restructuring and insolvency firm PKF Littlejohn Advisory, said the UK economy continued to grapple with both domestic and international pressures during the first quarter of the year. 'The UK is facing a range of challenges, and the actions of an unpredictable US administration are adding to global uncertainty. This is pushing many businesses that rely on international trade to re-evaluate their credit and operational strategies,' he said. Inflation remains a key concern. The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 3.4% in the 12 months to March 2025, down slightly from 3.7% in February. Goderski noted that while the easing is welcome, the broader economic picture remains fragile. 'Businesses are under considerable pressure,' he said. 'Inflation, increased employer National Insurance contributions, rising minimum wages and higher borrowing costs are all contributing to a demanding environment.' Goderski cautioned that the fall in insolvencies should not be interpreted as a shift in trend. 'While a reduction in insolvencies is positive, it may not reflect a broader improvement in economic conditions. Many companies remain vulnerable. Effective cash management is critical – that means ensuring customers pay on time and that every part of the business is operating efficiently,' he said. He warned that weak credit control and delayed supplier payments can quickly lead to operational issues. 'It's a slippery slope. Boards must remain vigilant and ensure the fundamentals are in place.' Investment conditions also remain uncertain. 'Uncertainty is the biggest risk, particularly for businesses seeking external funding. Boards must stay agile and keep options open,' he said. The long-term impact of the government's economic strategy is not yet clear. 'It remains to be seen whether current policies will generate stability and growth or whether we are heading toward a renewed downturn.' Goderski advised businesses experiencing early signs of financial distress to act quickly. 'Seeking professional advice at an early stage is essential. There may be opportunities to navigate through the turbulence, but contingency planning is equally important. Responsible boards will prepare for the worst while exploring the best possible outcomes.' "UK insolvency numbers fall slightly but economic pressures persist" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Inflation slows further to 2.6% after drop in petrol prices
UK inflation slowed down for the second month in a row in March on the back of falling petrol prices, according to official figures. The Office for National Statistics (ONS) also said a drop in the price of computer games contributed to the lower inflation reading. The rate of Consumer Prices Index (CPI) inflation eased to 2.6% for the month, from 2.8% in February, the statistics body said. It was a steeper fall than predicted by economists, who had expected a reading of 2.7% for March, and marks the lowest reading since December. The bigger-than-expected drop in inflation will be positively received by Chancellor Rachel Reeves, as it moves closer to the Bank of England's 2% target rate. The reading is also likely to increase calls for interest rates – which are typically kept high to help bring inflation down – to be reduced from their current rate of 4.5% at the Bank's next rate-setting meeting in May. However, economists have predicted that inflation will shoot higher in April after a raft of consumer bill increases – such as energy and water prices – as well as the potential impact of higher taxes and labour costs for businesses, which are likely to pass some costs on to customers. ONS chief economist Grant Fitzner said: 'Inflation eased again in March, driven by a variety of factors including falling fuel prices and unchanged food costs compared with the price rises we saw this time last year. 'The only significant offset came from the price of clothes, which rose strongly this month, following the unusual decrease in February.' Motor fuel prices were 5.3% lower for the month, marking the biggest decline for four months. It was partly driven by a fall in the average price of petrol by 1.6p per litre between February and March to stand at 137.5p per litre. It was down from 144.8p per litre in March 2024. The ONS also said prices in the recreation and culture sector rose at their slowest level for more than three years in March, with a 2.4% increase. This was partly driven by a fall in the cost of video games for the month. Meanwhile, clothing and footwear prices rose again for the month as many retailers reduced discounting, with a 1.1% increase after a surprise drop in February. Ms Reeves said: 'Inflation falling for two months in a row, wages growing faster than prices, and positive growth figures are encouraging signs that our Plan for Change is working, but there is more to be done.' The ONS's preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), eased back to 3.4% for March, from 3.7% the previous month. Meanwhile, the Retail Prices Index (RPI) rate of inflation declined to 3.2% from 3.4%. Sign in to access your portfolio
