Category Archives: Inflation

Cookie Monster and Ohio senator make odd allies in shrinkflation complaint

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Democratic senator Sherrod Brown endorsed the Sesame Street star’s complaint on products getting smaller as prices remain same

The Ohio Democratic senator Sherrod Brown endorsed a key voice in the American public square – Cookie Monster – in a complaint about shrinkflation.

“Me hate shrinkflation!” the Sesame Street character posted on social media on Monday, referring to an economic phenomenon Merriam-Webster defines as “the practice of reducing a product’s amount or volume per unit while continuing to offer it at the same price”.

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Deal allows police to march in parade – as it happened

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This blog is now closed.

On the “broken promise” of changing the stage-three tax cuts (the latest Guardian Essential poll had Albanese falling in the trust stakes) the prime minister said:

We made not an easy decision. We made the right decision for all the right reasons. We know that families are under cost of living pressure.

The idea that we could sit back and ignore the clear recommendations that this was the best way that we could have an impact on providing that assistance to middle Australia without putting upward pressure on inflation – we couldn’t ignore that.

This is just a terrible incident that’s occurred here. The loss of the two young men and I feel for the grieving of the family, the friends. They obviously were full of life, because so many people interacted with them. It’s a really tough day for, as well, the queer community, and it’s been a very difficult time.

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UK grocery price inflation falls to two-year low amid supermarket price war

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Competition helped offset impact of Red Sea shipping crisis in February, says analyst Kantar

Grocery price inflation in the UK has slowed to a two-year low as fierce competition among supermarkets offset the impact of the Red Sea shipping crisis on goods prices.

In a boost to households, supermarket prices were 5.3% higher than a year earlier in February, the lowest rate since March 2022 and down from January’s 6.8%, according to the analyst Kantar. Grocery sales grew by 5.1% in the four weeks to 18 February.

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Bank of England governor dampens hopes of interest rate cut

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Andrew Bailey says cost of living had been higher than expected in December despite ‘encouraging’ inflation news

The Bank of England governor has doused hopes that better-than-expected inflation news last month will accelerate cuts in interest rates, stressing the need for further evidence of wage moderation before Threadneedle Street moves.

Appearing before the House of Lords economics committee on Wednesday, Andrew Bailey said it was “encouraging” that inflation had remained unchanged at 4% in January but the previous month’s figure for the cost of living had been higher than predicted.

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US inflation hotter than expected in January at 3.1%

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While inflation has fallen sharply since peaking above 9% in June 2022, many are still feeling the pinch of high prices

Inflation was hotter than expected across the US last month as it continues to fall back from its highest levels in a generation.

Price growth dropped to an annual rate of 3.1% in January, according to official data; above economists’ expectations of 2.9%. In December, the consumer price index stood at 3.4%.

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UK pay growth slows less than expected as workers bid up wages

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December figures prompt predictions Bank of England may cut interest rates later than previously expected

Pay growth slowed less than expected in December, prompting predictions the Bank of England could start cutting interest rates later than previously expected.

Earnings growth, excluding bonuses, fell only modestly to 6.2% in October to December 2023 from a revised 6.7% in the previous three months, as workers continued to bid up their wages amid skills shortages and a record number of people with long-term sickness.

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China has seen a fourth month of falling prices, but will it act to curb deflation?

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Plunge in consumer prices has fuelled calls for a stimulus package – yet Beijing may stick to the new normal of lower growth

• China consumer prices plunge at fastest rate for 15 years

China’s economy has gone from bad to worse – and it is only February.

Figures released on Thursday showed consumer prices fell by 0.8% in January compared with a year earlier, outstripping economists’ expectations and marking the biggest contraction in 15 years.

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China consumer prices plunge at fastest rate for 15 years as deflation fears deepen

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Plummeting food prices feed steep annual drop amid renewed calls to stimulate economy and offset weakening demand

China’s consumer prices fell at their fastest pace in 15 years in January, as the world’s second-largest economy sank deeper into deflation amid weakening demand.

Data released on Thursday showed that China’s consumer price index tumbled last month, falling by 0.8% compared with a year earlier. It marks the fourth consecutive month of declines, as well as the sharpest drop since September 2009, when the global economy was still grappling with aftershocks from the 2008 banking crisis.

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UK workers must accept lower pay deals to help beat inflation, says Bank ratesetter

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Deputy governor Sarah Breeden also says firms must rein in profits as there is ‘some way to go’ to meet 2% inflation target

Victory in the war on inflation will require British workers to accept lower pay deals and companies to rein in their profits, a senior Bank of England policymaker has said.

Sarah Breeden, one of the central bank’s four deputy governors, said there was still “some way to go” before inflation would fall back to the 2% target set by the government for the Bank to achieve on a sustainable basis.

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UK ditches post-Brexit Canada trade talks; Vodafone and Three UK merger under investigation – as it happened

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Live, rolling coverage of business, economics and financial markets as Canada says UK was unwilling to give access to agricultural products

Shares in US chipmaker Intel have slumped in pre-market trading after it revealed a weaker forecast of earnings.

Chipmakers have been flying in recent years as shortages followed by the huge hype over artificial intelligence – which is hungry for processing power – prompted investors to pile into the sector.

Although Intel beat estimates, investors’ disappointment in Intel’s datacentre GPU story’s growth can be primarily attributed to the slower-than-expected product delivery and ramp-up.

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BT scraps above-inflation price rises for mobile and broadband customers

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UK’s mobile and broadband firms were accused of ‘greedflation’ last year by the Guardian

BT has become the first major telecoms company to scrap controversial above-inflation price rises for mobile and broadband customers – but not before pushing through a final increase this year.

The owner of mobile operator EE has moved to address the pressure on consumers from rising household costs during the cost of living crisis, after telecoms companies were criticised for increasing bills.

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US inflation ticked up to 3.4% in December as policymakers mull rate cuts

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Consumer price index exceeds economists’ expectations as Fed weighs when to start cutting borrowing costs

Inflation ticked higher in the United States last month as the Federal Reserve weighs the latest stage of its battle against price growth.

The headline consumer price index increased at an annual pace of 3.4% in December, according to the Bureau of Labor Statistics, up from 3.1% in the previous month, and exceeding economists’ expectations of about 3.2%.

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Greggs enjoys bumper Christmas period as it hails easing inflation

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Reduced cost pressures and popular festive bakes and chocolate orange muffins boost bakery chain

Greggs has hailed easing inflationary pressures after the UK’s biggest bakery chain rang up bumper Christmas sales amid less travel disruption and enthusiasm for seasonal specialities such as festive bakes and chocolate orange muffins.

The company said sales at established stores had risen 9.4% in the three months to 30 December as it attracted more customers with extended opening hours and by offering online ordering.

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Eurozone inflation rises to 2.9% after increase in energy costs

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December data comes amid speculation over when European Central Bank will cut interest rates

Inflation across the eurozone rose in December after an increase in energy costs, reversing six months of consecutive falls and easing the pressure on the European Central Bank (ECB) to cut interest rates.

Figures from the EU statistical agency Eurostat showed consumer prices across the 20-country bloc rose at an annual rate of 2.9% last month, up from 2.4% in November. Economists polled by Reuters had forecast a slightly higher reading of 3% for December.

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Labor could raise welfare payments for cost-of-living relief without stoking inflation, economists say

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Albanese government would need to couple any increases in unemployment benefits and pensions with savings, experts say

Addressing competition issues and increasing unemployment benefits and pensions are ways the Albanese government could tackle cost-of-living pressures but they would have to be coupled with savings to avoid reigniting inflation, economists say.

The prime minister, Anthony Albanese, on Wednesday said he had asked Treasury and the finance department to develop “further propositions” for providing cost-of-living relief by the May budget.

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Data reveals most expensive Australian capital to buy petrol – and the cheapest

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Drivers in Brisbane bear brunt of record petrol prices this year – ‘only now are we starting to see some relief’

Australian motorists are copping the cost of volatile world oil prices but relief could be in sight.

Drivers in Brisbane bore the brunt of record petrol prices this year, making the Queensland city the nation’s most expensive capital to put fuel in the tank. Regular unleaded cost on average 193.4 cents a litre, an NRMA analysis of 2023 petrol prices across the country revealed.

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Britons cut back on dining out and buying clothes, Barclays reveals

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Annual card spending report says consumers are prioritising travel and nights out and buying value-range groceries amid cost of living crisis

Hard-pressed consumers cut back on eating out and buying new clothes to prioritise spending on travel, entertainment and a visit to the pub over the past year, as soaring inflation and rising bills sharply curtailed the rate of spending growth.

Consumer card spending increased by 4.1% year-on-year in 2023, almost two-thirds lower than the 10.6% rise in 2022, as the sharp increase in the cost of living took its toll on households.

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How a spring UK budget could fire the starting gun for an early election

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UK economic prospects are bleak but an agenda-setting fiscal event such as sweeping tax cuts in March offers another roll of the dice

To grasp the nettle, or wait in the hope that things somehow miraculously improve. This is the choice Rishi Sunak will be weighing for the next general election, as the Conservatives limp towards the finishing line of another challenging year.

After Jeremy Hunt announced the government would hold an earlier than anticipated budget, with a date set for 6 March, the possibility of a poll in May, in the afterglow of some electioneering tax cuts, is clearly being given considerable thought.

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Ikea warns Red Sea attacks could disrupt supplies and deliveries

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Firm says it is weighing up options to secure product availability amid Yemeni rebel attacks on shipping

Ikea has warned that the disruption to global trade caused by Yemeni rebel attacks in the Red Sea could delay its deliveries and affect availability of some products.

The world’s largest furniture company said it was “evaluating other supply options to secure the availability of our products” after many big shipping companies stopped sending vessels through the Suez canal in response to the attacks by Houthi militants’ protests against the Israel-Gaza war.

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UK inflation in unexpectedly steep fall to 3.9% amid lower bread and fuel prices

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Forecast-beating drop in November takes rate to lowest level in more than two years

Britain’s two-year cost of living crisis eased last month as cheaper petrol and less expensive food helped send the annual inflation rate sharply lower to 3.9% – its second big monthly fall in succession.

In a much bigger decline than had been anticipated by economists, the annual rate of price rises fell from 4.6% in October to its lowest level since September 2021.

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