Labour MPs may clamour for bolder spending, but – like their Tory and Reform counterparts – they ask for the unaffordable
Too many Labour MPs want it all, and no amount of pleading from the top of government about the depleted public finances seems to make a difference.
The mainly leftist MPs want all the wrongs of the last 15 years put right and quickly. Their next opportunity to demand more cash arrives when Rachel Reeves delivers her spring statement on 3 March.
Continue reading...Reserve Bank’s decision to leave cash rate on hold was widely expected and major banks predict no interest rates cut until 2026
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The Reserve Bank has left the official interest rate on hold, as it warned house prices and rents will rise in 2026 after a surprise rebound in inflation.
The RBA’s monetary policy board on Tuesday kept the cash rate at 3.6%, where it has sat since August. Economists and banks overwhelmingly expected no change.
Continue reading...Increase was largely driven by a 4.1% increase in gasoline prices despite Trump’s campaign pledge to ‘end inflation’
Prices continued to rise in September, increasing at an annual rate of 3%, according to the latest government inflation report.
The September 2025 consumer price index (CPI) was published approximately two weeks later than usual due to the federal government shutdown, which halted all Bureau of Labor Statistics operations.
Continue reading...Policymakers under pressure for rethink after price growth in UK remained at 3.8% in September
Has UK inflation peaked? The latest official figures showing price growth in the UK stayed at 3.8% in September seem to suggest so.
The statement cannot be made with absolute certainty yet but many economists reacted to the latest consumer prices index (CPI) data with a message that the only direction for inflation over the rest of the year was down.
Continue reading...Annual September rate confounds forecasts of a rise, as pace of food price growth slows for first time since March
UK inflation was unchanged last month at 3.8%, confounding expectations of a rise, in welcome news for the chancellor, Rachel Reeves, as she plans for her crucial budget next month.
The Office for National Statistics (ONS) said that inflation measured on the consumer prices index remained at the same level in September as in August and July.
Continue reading...Exclusive poll: Inflation remains a concern despite president’s pledge to reduce prices on ‘day one’
Nine months after Donald Trump took office, promising to reduce prices on “day one”, a clear majority of Americans say their monthly costs have risen by between $100 and $749, according to an exclusive new poll conducted for the Guardian.
The president has continued to insist that there is “virtually no inflation”. “Prices are ‘WAY DOWN’ in the USA,” Trump wrote on social media in late August.
Continue reading...Harry Melbourne’s froggy treat that cost 10p in its 1990s heyday sells for about 30p or even up to £1 now
The creator of the Freddo chocolate bar would be rolling in his grave if he could see the prices being charged for a treat that cost 10p back in its 1990s heyday, his daughter has said.
Leonie Wadin said she once waited impatiently for her father, Harry Melbourne, to come home with boxes of Freddos, but has now vowed never to buy another one.
Continue reading...BRC says food prices rose by 4% in July from 2024, while CBI blames economic uncertainty for people not spending
Britain’s largest retailers struggled to entice shoppers back to the high street in July as the rising cost of meat and butter drove up food prices, adding to the pressure on household finances.
According to the latest snapshot from the British Retail Consortium (BRC) food prices rose by 4% in July from a year earlier, up from 3.7% in June and above the three-month average of 3.5%.
Continue reading...ONS data shows jobless rate climbing to highest rate since June 2021 with growth in average earnings slowing to 5%.
Unemployment climbed and wage growth slowed in the three months to May, according to official figures that will pressure the Bank of England to cut interest rates next month.
Data from the Office for National Statistics, released on Thursday, showed that Britain’s official unemployment rate rose to 4.7% in the three months to May, up 0.1% from April to reach the highest level since June 2021.
Continue reading...Exclusive: poll shows 62% of women and 47% of men across political spectrum say economy and inflation getting worse
Women across the political spectrum are more concerned about the state of the US economy and inflation under Donald Trump than men are, according to a new exclusive poll for the Guardian.
More Democrats than Republicans are now concerned about the economy following the president’s return to power. But pessimism was higher for women even among Republicans and independents, according to a new Harris poll.
More women said they are very worried about food prices (52% of women compared to 39% of men)
More women said they’re spending more time trying to find deals or go to more affordable stores (36% versus 26%)
More women said their financial security is getting worse because of their difficulty in affording essential goods and services (55% versus 46%)
Continue reading...Annual rate slows in May from 3.5% in April despite record increase in chocolate prices
Inflation in the UK eased slightly to 3.4% last month as a steep fall in air fares and petrol prices was offset by a jump in the cost of food.
May’s decline in the consumer prices index (CPI), down from the official figure of 3.5% for April, complicates the Bank of England’s interest rates decision on Thursday, although policymakers are still almost certain to hold interest rates at 4.25%.
Continue reading...Bank of England’s Catherine Mann wary of firms looking to rebuild profit margins after a squeeze
Businesses will need to show they are keeping a lid on prices before there can be further interest rate cuts, according to the Bank of England interest rate-setter Catherine Mann.
In a warning to retailers and consumer goods companies to resist pushing up prices by more than the increase in their costs, Mann said she was wary of firms looking to rebuild their profit margins after a squeeze in recent years.
“I need to see the loss of pricing power, I need to see that firms are starting to be much more moderate in setting their prices,” she said.
Move follows run of downbeat economic data and looks to cushion UK from Trump’s trade war fallout
Bank of England policymakers have cut interest rates by a quarter point to 4.25% to cushion the UK economy against the impact of Donald Trump’s trade war.
The widely expected move from the Bank’s monetary policy committee (MPC), its fourth cut since last August, should lead to cheaper mortgages for homeowners.
Continue reading...Chancellor says wages are growing faster than prices but acknowledges many are still struggling with the cost of living
A government minister has reiterated the call for the Unite union to accept a deal and end the bin strike in Birmingham.
Speaking on GB News this morning, Lillian Greenwood, parliamentary under-secretary of state for the future of roads, said residents were facing “a completely unacceptable situation”
Continue reading...Sarah Breedon says too early to judge impact on inflation of ‘most significant change in trade policy in a century’
UK economic growth will be hit by US tariffs, which are the biggest trade policy change in a century, a senior Bank of England official has warned.
Sarah Breeden, the Bank’s deputy governor for financial stability, said on Thursday that business activity was likely to be adversely affected by Donald Trump’s tariff regime, dragging down the UK’s already weak growth rate.
Continue reading...Officials said to be looking at whether producers have conspired to increase prices or have held back supply
The justice department has reportedly opened an investigation into what is driving the sharp rise in egg prices, including whether top producers have conspired to increase them.
Officials are also said to be looking at whether companies have held back supply. Their investigation is in its early stages, and may not lead to any formal action, according to the Wall Street Journal, which cited sources familiar with the matter.
Continue reading...Annual CPI inflation rate hit 10-month high in January in blow to ministers amid rise in food bills and fuel costs
UK inflation accelerated faster than expected at the start of this year, eating into workers’ wages and reducing the chance of an interest rate cut next month.
The consumer prices index (CPI) measure rose to 3% in January, the Office for National Statistics reported, up from 2.5% in December.
Continue reading...Plan for ‘reasonable’ 2.8% rises may prove insufficient, forcing chancellor to find billions in extra funding
Rachel Reeves has been warned public sector unions will demand higher pay increases to compensate for accelerating inflation, heaping pressure on the chancellor to find billions of pounds in extra funding.
The government made recommendations in December for a 2.8% pay rise for teachers, NHS staff and other public sector workers for the financial year beginning in April, saying it was a “reasonable amount” given forecasts for the economy.
Continue reading...Impending tax rises from autumn budget fuel collapse in sentiment and rising redundancy intentions, surveys show
UK employers are preparing for the biggest redundancy round in a decade amid collapsing business confidence as firms brace for tax increases from April that Rachel Reeves announced in her autumn budget.
In a fresh blow for the chancellor, the Chartered Institute of Personnel and Development (CIPD), which represents human resources professionals, said a survey of 2,000 employers showed redundancy intentions at their highest level in 10 years, barring the Covid pandemic.
Continue reading...The president repeatedly claimed he would lower prices during the election campaign, but that’s not an easy task
As tens of millions of Americans prepared to watch the Super Bowl this weekend, Donald Trump sat for the customary pre-game presidential interview.
Trump was elected after pledging to bring down prices fast as much of the country grappled with the cost of living after years of heightened inflation. So when the Fox News anchor asked would families start to feel the impact, the president changed the subject.
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