Category Archives: Inflation

‘A dollar or two increase is devastating’: US consumers on toll of rising gas prices

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Guardian readers describe how their lives have been upended by cost hikes stemming from Trump’s Iran war

With the US and Israel’s war on Iran now in its seventh week, with a fragile ceasefire in place since earlier this month, Americans are continuing to feel the effects at the pump as global fuel prices rise.

For several readers who spoke to the Guardian, the impact has forced difficult trade-offs – from accessing essential medicines and groceries to facing the brink of homelessness amid an already rising cost of living.

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UK firms expect to raise prices more quickly as Iran war pushes up costs

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Bank of England survey in March shows chief financial officers foresee 3.7% increase over coming year

Companies in the UK expect to raise their prices more rapidly over the coming months as the war in the Middle East drives up costs, Bank of England research shows.

The Bank’s regular survey of more than 2,000 chief financial officers conducted last month, after the Iran conflict began, shows they now expect to raise their prices by 3.7% over the coming year.

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‘The stakes are enormous’: how a prolonged Iran war could shock the global economy

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Donald Trump’s ‘little excursion’ is likely to have long-term effects, from oil prices to inflation to growth, say experts

In the days after the US and Israel first bombed Iran, financial markets bet the economic fallout from Donald Trump’s “little excursion” in the Middle East would be short-lived.

“There are risks from higher oil prices longer term. But this is a tail risk,” one US-based fund manger said after the airstrike killing Iran’s supreme leader, Ayatollah Ali Khamenei. “History has shown time and time again that geopolitical flare-ups like this tend to be short-lived. This one should prove to be no exception.’’

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‘I don’t give a shit about Iran. I don’t want to pay higher gas’: Motor City motorists feel pinch as gas prices surge

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Drivers in Detroit are unhappy with the spike in gas prices, even if reactions are mixed to the US-Israel war on Iran

On a rainy Detroit afternoon at a gas station off Interstate 75, Victor Rodriguez watched the pump tally tick up as he filled up his F-250 diesel pickup truck for $4.19 per gallon. It totaled $110. “Ridiculous,” he said.

The US-Israel war on Iran has crippled major portions of the oil supply chain, sending gas prices soaring as the conflict enters its third week. Rodriguez said he supports “getting rid of this thug”, referring to Iran’s Ayatollah Ali Khamenei, who was killed by the US, but the cost is too high.

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US inflation stayed flat at 2.4% in February before effects of war on Iran kicked in

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Effect of war on prices not reflected in data, as Trump says only ‘fools’ would think oil price shocks would be significant

US inflation stayed flat at 2.4% in February, according to government data released Wednesday that provides a snapshot of the US economy before it was thrown into a tailspin by the US-Israel conflict with Iran.

The levelling comes after prices swung last year, reaching a four-year low in April before shooting back up in September. In late fall, inflation crept down again, reaching 2.4% in January.

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Nearly 4,000 US meatpacking workers to strike at plant run by top Trump donor

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Workers at JBS USA to strike Monday in what will be the first labor strike in the meatpacking industry in decades

About 3,800 workers at JBS USA, the world’s largest meat producer, are set to strike on Monday in what will be the first labor strike in the industry in decades.

The walkout threatens to put further strain on US meat prices – ground beef prices soared 15% last year – and could prove a headache for the Trump administration as it struggles with poor polling on cost of living issues.

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Don’t be fooled by recent good news, the UK economy is still in a precarious state

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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.

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RBA holds official interest rate at 3.6% while warning of rising house prices and rents

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Reserve Bank’s decision to leave cash rate on hold was widely expected and major banks predict no interest rates cut until 2026

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.

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US prices rose at a 3% annual rate in September, slightly beating forecasts

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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.

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Signs of peak inflation open door to earlier Bank of England interest rate cuts

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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.

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UK inflation unexpectedly remains at 3.8% for third month in a row

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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.

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75% of Americans report soaring prices as Trump claims inflation ‘over’

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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.

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Freddo bar creator would be ‘rolling in his grave’ at its price today, daughter says

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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.

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Rising UK food prices turn cash-strapped shoppers away from high street

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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%.

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UK unemployment rises and wage growth slows as jobs market ‘weakens’

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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.

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Women more worried about economy under Trump than men, poll finds

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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%)

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UK inflation eases slightly to 3.4% as food price rises offset transport cost falls

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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%.

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Rising goods prices could delay UK interest rate cuts, says Bank policymaker

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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.

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UK interest rates fall to 4.25% as Bank of England announces a quarter-point cut

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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.

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Reeves says inflation fall shows ‘plan for change is working’ – UK politics live

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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”

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