Latest news with #PlanforChange
North Wales Chronicle
41 minutes ago
- Business
- North Wales Chronicle
Inflation rises to 3.6 per cent with food costs hitting hard
The ONS said annual food price inflation hit the highest level since February 2024, while transport costs also pushed up the cost of living. ONS acting chief economist Richard Heys said: 'Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year. 'Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. 'However, it remains well below the peak seen in early 2023.' Chancellor Rachel Reeves said there was 'more to do' to help bring inflation down. She said: 'I know working people are still struggling with the cost of living.' 'There is more to do and I'm determined we deliver on our Plan for Change to put more money into people's pockets,' she added. The surprise increase in inflation will be watched closely by the Bank of England ahead of its next interest rate decision in August. Policymakers are widely expected to cut rates again next month, from 4.25% to 4%, given a slowing wider economy, but the latest unexpected rise in inflation may see the Bank tread cautiously further out, according to experts. Additionally, core CPI (CPI excluding energy, food, alcohol, and tobacco) rose by 3.7% in the 12 months to June 2025, up from 3.5% in the 12 months to May. The news has not been welcomed by those looking to secure or renew mortgages. Ranald Mitchell, Director at Charwin Mortgages, says: 'Inflation rising to 3.6% is a hammer blow for households and a warning shot for the economy. It shatters hopes of imminent rate cuts, leaves mortgage borrowers exposed, and offers little relief to savers still losing out in real terms. Once again, the Bank of England is left carrying the weight while the Government offers no plan, no leadership and no accountability. Without urgent action, this will only get worse.' David Belle, Founder at Fink Money, adds: 'Inflation is up and the spirit of businesses and consumers in this country is down. We are heading for stagflation without a backdrop for growth. The Bank of England is in for a tricky time now. "Try to cut and stimulate growth and shift inflation higher or raise rates and batter the economy even more to contain inflation. What's certain is that the government is totally out of its depth and running the economy into the ground." Recommended reading: Rob Mansfield, Independent Financial Advisor at Rootes Wealth Management, says: 'The cost of living crisis continues to bite. The rise in motor fuels was expected given the war in the Middle East and it shows how vulnerable our island is to events all over the globe. "Most people can't avoid these price rises, so they ask for higher wages, which can in turn drive up prices.' The figures come after gross domestic product (GDP) shrank by 0.1% in May, following a 0.3% fall in April and leading to fears of a contraction overall in the third quarter. Jobs figures on Thursday are expected to show a further slowdown in wage growth, which may help smooth the path for a rate cut.
STV News
41 minutes ago
- Business
- STV News
Inflation jumps to highest level for nearly 18 months as food prices rise again
UK inflation rose to a near 18-month high in June as food prices surged for the third month running, according to official figures. The Office for National Statistics (ONS) said Consumer Prices Index inflation rose to 3.6% in June, up from 3.4% in May and the highest since January 2024. The increase was unexpected, with most economists forecasting inflation to remain unchanged at 3.4%. The ONS said annual food price inflation hit the highest level since February 2024, while transport costs also pushed up the cost of living, as air fares saw the largest monthly rise in price for seven years. ONS acting chief economist Richard Heys said: 'Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year. 'Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. 'However, it remains well below the peak seen in early 2023.' Chancellor Rachel Reeves said there was 'more to do' to help bring inflation down. She said: 'I know working people are still struggling with the cost of living.' 'There is more to do and I'm determined we deliver on our Plan for Change to put more money into people's pockets,' she added. The surprise increase in inflation will be watched closely by the Bank of England ahead of its next interest rate decision in August. Policymakers are widely expected to cut rates again next month, from 4.25% to 4%, given a slowing wider economy, but the latest unexpected rise in inflation may see the Bank tread cautiously further out, according to experts. Suren Thiru, economics director at Institute of Chartered Accountants in England and Wales (ICAEW), said: 'June's uptick is the start of a slight summer surge in inflation with skyrocketing business costs and global trade turbulence likely to lift the headline rate moderately higher by the autumn, despite July's drop in energy bills. 'While June's hot inflation won't deter policymakers from sanctioning an August policy loosening, given mounting worries over economic conditions, these figures may increase caution over the pace of future rate cuts.' The figures come after gross domestic product (GDP) shrank by 0.1% in May, following a 0.3% fall in April and leading to fears of a contraction overall in the third quarter. Jobs figures on Thursday are expected to show a further slowdown in wage growth, which may help smooth the path for a rate cut. Adam Deasy, economist at PwC, said: 'While price growth remains far above target, the UK economy contracting for a second straight month in May means the Bank is likely to look through the volatility in this inflation reading and proceed with a rate cut in August. 'Tomorrow's payroll data release, the last major data release before the next Monetary Policy Committee meeting, may spark the Bank into action to support an economy that increasingly looks like it needs a lift.' The ONS data showed food and non-alcoholic drink price inflation lifted to 4.5% in June, up from 4.4% in May. Within transport costs, the ONS said air fares soared by 7.9% between May and June, marking the biggest rise since 2018. Rail fares also rose month-on-month, having fallen a year earlier, while fuel prices fell only slightly last month compared with a larger fall a year ago. The average price of petrol fell by 0.5 pence a litre during June, compared with a a drop of 3 pence a litre between May and June 2024. Elsewhere, the data showed the ONS's preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), lifted to 4.1% last month from 4% in May. Meanwhile, the Retail Prices Index (RPI) rate of inflation rose to 4.4% in June from 4.3% in May. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Daily Record
an hour ago
- Business
- Daily Record
Good Morning Britain paused for 'breaking news' in huge economy blow for Keir Starmer
Good Morning Britain halted the usual programme to announce some shocking breaking news regarding the economy which will come as a fresh huge blow to Keir Starmer and Rachel Reeves. Host Charlotte Hawkins announced that inflation has risen to 3.6 per cent. She said: "We've got breaking news on the rate of inflation. We've just had the figures in and it has gone up to 3.6% in June from 3.4% in the previous month. That's according to the official figures released in the last few moments from the Office for National Statistics. "It is a higher increase than was expected, and it does take us further away from the Bank of England's inflation target of 2%. The Chancellor says more needs to be done to get that figure down," she continued before passing to Louisa James outside Downing Street. She confirmed: "That increase is higher than economists had predicted, and that is said to be down to the cost of transport, particularly fuel, core inflation, which excludes food and energy is also up now. "For context, 3.6% is still much lower than the double figures we had a couple of years ago, and economists do expect inflation to start coming down towards the end of the year, beginning of next year. "But 3.6% is still much higher than the target of 2.2% set by the Bank of England, and it is a reminder that the cost of living is still a very real challenge for many, including for this government." This news will come as a further blow for Chancellor Rachel Reeves as she is under intense pressure over her handling of the economy, the Express reports. Inflation had been predicted to remain the same from the rate in May, where it had previously stayed for two months. Following the unanticipated inflation rise, the value of the pound has now also risen, which further confuses the picture for the Bank of England at its next meeting on interest rates. The pound's value was up 0.2% versus the dollar at $1.34. It does remain flat against the Euro, however, which was worth 86.7p. Last month, Rachel Reeves insisted she was "determined" to put more money in people's pockets. She said: 'I know working people are still struggling with the cost of living. 'That is why we have already taken action by increasing the national minimum wage for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus fare cap. 'But there is more to do and I'm determined we deliver on our Plan for Change to put more money into people's pockets.'
The Herald Scotland
an hour ago
- Business
- The Herald Scotland
Inflation rises to 3.6 per cent with food costs hitting hard
The ONS said annual food price inflation hit the highest level since February 2024, while transport costs also pushed up the cost of living. ONS acting chief economist Richard Heys said: 'Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year. 'Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. 'However, it remains well below the peak seen in early 2023.' Chancellor Rachel Reeves said there was 'more to do' to help bring inflation down. She said: 'I know working people are still struggling with the cost of living.' 'There is more to do and I'm determined we deliver on our Plan for Change to put more money into people's pockets,' she added. The surprise increase in inflation will be watched closely by the Bank of England ahead of its next interest rate decision in August. Policymakers are widely expected to cut rates again next month, from 4.25% to 4%, given a slowing wider economy, but the latest unexpected rise in inflation may see the Bank tread cautiously further out, according to experts. Additionally, core CPI (CPI excluding energy, food, alcohol, and tobacco) rose by 3.7% in the 12 months to June 2025, up from 3.5% in the 12 months to May. The news has not been welcomed by those looking to secure or renew mortgages. Ranald Mitchell, Director at Charwin Mortgages, says: 'Inflation rising to 3.6% is a hammer blow for households and a warning shot for the economy. It shatters hopes of imminent rate cuts, leaves mortgage borrowers exposed, and offers little relief to savers still losing out in real terms. Once again, the Bank of England is left carrying the weight while the Government offers no plan, no leadership and no accountability. Without urgent action, this will only get worse.' David Belle, Founder at Fink Money, adds: 'Inflation is up and the spirit of businesses and consumers in this country is down. We are heading for stagflation without a backdrop for growth. The Bank of England is in for a tricky time now. "Try to cut and stimulate growth and shift inflation higher or raise rates and batter the economy even more to contain inflation. What's certain is that the government is totally out of its depth and running the economy into the ground." Recommended reading: Rob Mansfield, Independent Financial Advisor at Rootes Wealth Management, says: 'The cost of living crisis continues to bite. The rise in motor fuels was expected given the war in the Middle East and it shows how vulnerable our island is to events all over the globe. "Most people can't avoid these price rises, so they ask for higher wages, which can in turn drive up prices.' The figures come after gross domestic product (GDP) shrank by 0.1% in May, following a 0.3% fall in April and leading to fears of a contraction overall in the third quarter. Jobs figures on Thursday are expected to show a further slowdown in wage growth, which may help smooth the path for a rate cut.
Glasgow Times
an hour ago
- Business
- Glasgow Times
Inflation rises to 3.6 per cent with food costs hitting hard
The ONS said annual food price inflation hit the highest level since February 2024, while transport costs also pushed up the cost of living. ONS acting chief economist Richard Heys said: 'Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year. 'Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. 'However, it remains well below the peak seen in early 2023.' Chancellor Rachel Reeves said there was 'more to do' to help bring inflation down. She said: 'I know working people are still struggling with the cost of living.' 'There is more to do and I'm determined we deliver on our Plan for Change to put more money into people's pockets,' she added. The surprise increase in inflation will be watched closely by the Bank of England ahead of its next interest rate decision in August. Policymakers are widely expected to cut rates again next month, from 4.25% to 4%, given a slowing wider economy, but the latest unexpected rise in inflation may see the Bank tread cautiously further out, according to experts. Additionally, core CPI (CPI excluding energy, food, alcohol, and tobacco) rose by 3.7% in the 12 months to June 2025, up from 3.5% in the 12 months to May. The news has not been welcomed by those looking to secure or renew mortgages. Ranald Mitchell, Director at Charwin Mortgages, says: 'Inflation rising to 3.6% is a hammer blow for households and a warning shot for the economy. It shatters hopes of imminent rate cuts, leaves mortgage borrowers exposed, and offers little relief to savers still losing out in real terms. Once again, the Bank of England is left carrying the weight while the Government offers no plan, no leadership and no accountability. Without urgent action, this will only get worse.' David Belle, Founder at Fink Money, adds: 'Inflation is up and the spirit of businesses and consumers in this country is down. We are heading for stagflation without a backdrop for growth. The Bank of England is in for a tricky time now. "Try to cut and stimulate growth and shift inflation higher or raise rates and batter the economy even more to contain inflation. What's certain is that the government is totally out of its depth and running the economy into the ground." Recommended reading: Rob Mansfield, Independent Financial Advisor at Rootes Wealth Management, says: 'The cost of living crisis continues to bite. The rise in motor fuels was expected given the war in the Middle East and it shows how vulnerable our island is to events all over the globe. "Most people can't avoid these price rises, so they ask for higher wages, which can in turn drive up prices.' The figures come after gross domestic product (GDP) shrank by 0.1% in May, following a 0.3% fall in April and leading to fears of a contraction overall in the third quarter. Jobs figures on Thursday are expected to show a further slowdown in wage growth, which may help smooth the path for a rate cut.
