Category Archives: Inflation

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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Trump tariffs likely to drag down weak UK growth, Bank policymaker warns

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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.

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Justice department opens investigation into soaring US egg prices – report

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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.

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UK inflation jumps to 3%, reducing chance of early interest rate cut

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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.

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Reeves warned UK inflation will push public sector unions to seek higher pay rises

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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.

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UK firms mull biggest layoffs in a decade as business confidence slumps

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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.

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New inflation numbers are at odds with Donald Trump’s promise to lower prices

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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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‘Stagflation’ fears as Bank of England cuts growth forecast and warns of price rises

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UK economy expected to grow by just 0.75% this year, in fresh blow to Rachel Reeves’s attempts to raise confidence

Rachel Reeves’s plans for growth suffered a double blow after the Bank of England halved its forecast for the year and warned households would face mounting pressure from rising prices.

In a downbeat assessment as it cut interest rates for a third time in six months, Threadneedle Street warned people would face a fresh squeeze on living standards from rising inflation even as the economy stalled.

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Bank of England cuts interest rates to 4.5% and halves UK growth forecast

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Latest quarter-point reduction comes with warning households face inflation of 3.7% by autumn

The Bank of England has cut interest rates to 4.5%, as it halved its UK growth forecasts for the year and warned households would face renewed pressure from rising prices.

With the government under fire over the sluggish economy, the Bank’s monetary policy committee (MPC) voted by a majority of seven to two to reduce its key base rate, down from 4.75%, to provide some financial relief to borrowers.

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UK grocery inflation slows for first time in six months amid rise in promotions

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Kantar figures could be good news for government as food price rises have fuelled persistent UK inflation

Grocery inflation slowed in January – for the first time in six months – as retailers ramped up promotions to attract budget-conscious shoppers.

The price of groceries increased by 3.3%, easing from 3.7% in December, as the costs of toilet roll and cat food fell but those of chocolate, butter and chilled juices rose, according to analysts at Kantar.

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AstraZeneca cancels £450m Liverpool investment, blaming UK government funding cuts – business live

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Pharmaceutical company says that it will not go ahead with investment at Speke, near Liverpool

Donald Trump’s White House will invoke emergency powers to introduce tariffs on Canada and Mexico, Reuters reports:

Two sources familiar with the matter said that Trump was expected to invoke the International Emergency Economic Powers Act (IEEPA) as the legal basis for the tariffs, declaring a national emergency over fentanyl overdoses that killed nearly 75,000 Americans in 2023 and illegal immigration.

The statute enacted in 1977 and modified after the 9/11 attacks in 2001 gives the president broad powers to impose economic sanctions in a crisis.

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High food prices becoming ingrained in Australian economy, analyst warns

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Economic data shows food and beverage prices still rising faster than long-term average, even as inflationary pressures ease

High food prices are now embedded in the economy, a retail analyst has warned, after new inflation data released on Wednesday.

Egg prices surged 11% last year, and the cost of cooking oil is up 7%; lamb prices have jumped 17%, while shoppers are paying about 6% more for fruit and vegetables. Beer prices have lifted by 4%.

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