Annual June figure comes after new PM pledges to reduce cost of living and improve economy
UK inflation dropped by more than expected in June to 2.6%, in a boost for Andy Burnham’s plans to reduce the cost of living.
The new prime minister has pledged to bring down the cost of living to give households more disposable income and improve the outlook for the economy, announcing a winter VAT cut on electricity bills and lowering the cap on bus fares in England.
Continue reading...Turmoil likely as Trump officials say Canada unfairly discriminated against US autos, alcohol and dairy products
Donald Trump is imposing 50% tariffs on most Canadian goods, White House officials said on Monday, declaring Canada has unfairly discriminated against American autos, alcohol and dairy products.
The move could unleash a new wave of economic chaos, with risks of higher inflation and further fraying of relations between two nations that had been closely woven together before Trump’s return to the White House.
Continue reading...Health Foundation paper argues health is an economic asset and improving it could generate £72bn for public finances
Restoring the deteriorating health of the UK’s population to the level of 2014 would boost GDP by 2% and generate a £72bn dividend for the public finances, research suggests.
A paper by the Health Foundation thinktank, published on Sunday, argues the nation’s health should be valued by policymakers as an economic asset.
Continue reading...Worse-than-expected figures for three months to June come amid concerns over lopsided economy
China has posted worse-than-expected growth figures for the three months to June as its economy expanded by just 4.3% – one of its lowest quarterly readings on record.
The rate, which came in under the government’s target of 4.5% to 5%, was one of the weakest since reporting on official quarterly GDP figures began in the early 1990s.
Continue reading...Unesco report shows children lost out to servicing debt in 113 countries, with 18 spending five times more on loans
Most developing countries spent less on education than they did repaying debt last year, according to the UN, at the same time as global aid to education is predicted to decline by up to 30%.
More was spent on servicing foreign debt than on education in 113 developing countries in 2025, according to research by the UN’s culture and education agency, Unesco. In sub-Saharan Africa, countries spent 3.6 times more on debt than education.
Continue reading...How to hit the 3.5% of GDP defence spending promise would be a matter for ‘the next prime minister’, MPs told
The Treasury has as yet carried out no analysis of the trade-offs necessary for the UK to hit the 3.5% of GDP defence spending promise made to Nato, the department’s chief secretary has said.
Under robust questioning in a joint session of the Treasury and defence select committees on Wednesday, Lucy Rigby repeatedly said that how to fund additional defence spending would be a matter for “the next prime minister”.
Continue reading...July update projects GDP growth of 1% this year, making UK the third fastest-growing economy in the G7
The International Monetary Fund (IMF) has upgraded its growth forecast for the UK, while leaving those for other G7 countries weaker or unchanged, amid hopes the economic impact of the Iran war may be less severe than feared.
In a July update of its World Economic Outlook, which was finalised before the latest outbreak of hostilities in the Middle East, the Washington-based organisation projected UK gross domestic product to grow by 1% this year – up 0.2 percentage points from its April forecast.
Continue reading...PM says: ‘I love this country, I want this country to thrive, and I shall do everything I can to make sure it’s a success and thrives’
In her Q&A this morning Rachel Reeves, the chancellor, confirmed that she wants the government to approve the licences for the Rosebank and Jackdaw oil and gas fields in the North Sea.
She said:
I’ve been very clear that I think that the North Sea is a crucial asset for the UK, and that oil and gas will be an important part of our energy mix for years to come. And I’m very keen to make sure that we use that resource, to ensure our energy security.
There are decisions to be made shortly on both Rosebank and Jackdaw. Those are quasi-judicial decisions. But in our manifesto two years ago, we committed to honour existing licences, and I hope that we do.
Continue reading...Stock markets on both sides of Atlantic up as concerns ease over prospect of another inflationary shock
Oil prices have fallen to pre-Iran war levels as more oil tankers exited the strait of Hormuz.
Brent crude, the global benchmark, fell to a low of $72.24 a barrel on Thursday, slightly lower than the day before the US and Israel launched missile attacks on Tehran on 28 February. Prices have fallen more than 20% this month.
Continue reading...International firm owns up to breach of ethics after staff leaked confidential Optus information while bidding for telco contract
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KPMG has admitted to another breach of ethics after its staff leaked Optus’ confidential information to colleagues bidding for an audit contract with Telstra.
The consulting firm’s executives also surveilled a whistleblower’s laptop and dismissed the individual as someone with “workplace grievances”, a parliamentary inquiry heard on Friday.
Continue reading...Drop will put pressure on Bank of England to raise interest rates despite peace deal in Iran war
Unemployment fell and wages increased in April, official figures showed, putting pressure on the Bank of England to raise interest rates despite a peace deal in the Middle East.
The latest figures from the Office for National Statistics (ONS) showed unemployment slipped to 4.9% in the three months to April from 5% in the three months to March.
Continue reading...Exclusive: Economists find Brexit caused 12% depression in UK exports, most of which is due to leaving single market
Brexit has depressed UK exports to the EU by 12%, and rejoining the customs union would undo only a fraction of the damage, research shared with the Guardian shows.
With the UK’s future relationship with the bloc likely to feature prominently in a potential Labour leadership contest, the economists John Springford and Anton Spisak, of the Centre for European Reform, provide fresh evidence of the damage caused by exiting.
Continue reading...Country acts amid Iran war inflation pressures, but US Fed and Bank of England expected to hold rates
The Bank of Japan (BoJ) has raised interest rates to a 31-year high as it tries to dampen inflationary pressures created by the Iran war.
Policymakers in Tokyo raised the BoJ’s short-term policy rate by a quarter of one percentage point, to 1% from 0.75%, and warned that companies were passing on rising oil costs to each other at a “relatively fast pace”.
Continue reading...Reserve Bank of Australia decision on Tuesday comes after three consecutive cash rate hikes this year
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The Reserve Bank has warned it is ready to raise interest rates further despite leaving its official interest rate on hold at 4.35%.
The widely expected decision on Tuesday will bring little relief to mortgage holders, already strained by the RBA’s three consecutive rate hikes earlier in 2026.
Continue reading...Markets welcome US-Iran peace deal but prices may stay high as buyers race to refill depleted emergency crude stockpiles
After more than 100 days of the greatest recorded disruption to the world’s energy supplies, the global oil and gas markets have breathed a sigh of relief.
Hours after Donald Trump confirmed that a US-Iran peace deal would lead to the reopening of the strait of Hormuz for tankers carrying millions of barrels of oil and gas, the price of Brent crude tumbled to lows of $82 a barrel. Wholesale gas prices fell about 6%.
Continue reading...Brent crude falls as optimism rises that strait of Hormuz could reopen over the weekend
Global oil prices fell on Friday to lows not seen since the first week of the Iran crisis after Donald Trump claimed he was close to reaching a peace deal with Tehran.
The price of Brent crude began to tumble from about $93 a barrel in overnight trade after the US president called off further military strikes against Iran scheduled for the evening.
Continue reading...European Central Bank increases main deposit rate to 2.25%, with two further rises expected by next spring
The European Central Bank has raised interest rates for the first time since 2023 in response to higher inflation caused by the war in Iran.
The ECB raised its main deposit rate from 2% to 2.25% in a move that financial markets expect to be the first of three rises by next spring.
Continue reading...Cold storage and logistics body warns food supplies at risk from fuel shortages, cyber attacks and extreme weather
Ministers have been accused of being complacent about the risks to vital supplies of food into the UK amid concerns over fuel shortages, cyber attacks and extreme weather.
The trade body for cold storage and logistics has urged the government to make potential disruption to the UK’s food system an “immediate national priority”.
Continue reading...British Retail Consortium figures show footfall rose in May, with consumer confidence improving after spending squeeze
Greater numbers of consumers went shopping last month as spring sunshine brought welcome relief to retailers, which have faced a squeeze on spending since the US-Israel war on Iran.
Figures from the British Retail Consortium (BRC) and a separate survey by the accountancy firm BDO showed a bounce-back in footfall during May, reversing a sharp decline in April.
Continue reading...Data shows even if Iran war ends, shop price inflation on rise, while only 16% of firms left unscathed by conflict
Higher prices could persist over the summer even if ceasefire talks between the US and Iran bear fruit, consumers have been warned, with economic shock waves likely to be felt “for many months to come”.
Disruption to global shipping, coupled with soaring prices for energy and raw materials, have driven up costs for UK companies, with the impact already filtering through to prices paid at the tills, according to fresh inflation figures.
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