GCI

UK inflation rate jumps to 1.6%

Inflation hit its highest rate since July 2014 last month as air fares and food prices rose.
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  • Financial markets are forward-looking. At least that’s what business school professors teach us.They believe traders look at the future and decide how much a stock will be worth in 10 years. The current price is based on that future price.You might be shaking your head in disbelief. But that’s what Wall Street analysts do.They create spreadsheets to forecast the future. Then they make assumptions about interest rates, and the spreadsheets tell them what to pay for a stock.It sounds scientific, but it’s not. The whole process depends on the chart below.(Source: Federal Reserve)This is a chart of what investors believe inflation will average over the next 10 years. It’s based on what the current interest rates are.It’s always close to the current rate of inflation. In other words, investors believe inflation will stay about the same.That’s a surprisingly accurate assumption. Inflation generally does stay within a narrow range.But when it unexpectedly jumps, like it did in 1968, the stock and bond markets fall.The Federal Reserve calls this important metric “inflation expectations.” It understands that if expectations are stable, markets are fine.But if inflation jumps, expectations will jump. The Fed’s goal is to manage expectations.When inflation jumped in 1968, expectations stayed high for more than 20 years. Stocks suffered four distinct bear markets from the next 15 years. A bear market in this case is a decline of at least 20% in the S&P 500.If inflation and inflation expectations jump, that will happen again.Investors will see volatility and declines more often. Consumers will suffer as prices rise at stores. Overall, it will simply be terrible.And it’s likely to happen within the next few years.Regards,Michael Carr, CMTEditor, Peak Velocity Trader
  • Inflation unexpectedly slows to 2.6% in June The UK's inflation rate dropped unexpectedly to 2.6% in June, from 2.9% in May,...
  • Credit Agricole CIB FX Strategy Research discusses its outlook for the FX market next week, noticing that the thematic focus would be on the inflation data releases from the US, Canada, UK, and the Eurozone.  In the US, CACIB thinks that the USD may get little help from US inflation data given that CACIB doesn’t expect any acceleration in the core CPI reading.  In Canada, CACIB thinks that the CAD should be in a better position to benefit from any pick-up in inflation and maintains a short USD/CAD* position. In the UK, CACIB believes that the UK CPI could put the BoE’s view that inflation is close to peaking to test, arguing that it remains to be seen whether any evidence of a persistent inflation overshoot would help GBP on a re-pricing of the BoE’s rate outlook. Finally in the Eurozone, CACIB notes that the final HICP print may help investors to focus their attention on the likely positive impact from higher-than-expected oil prices and the weaker EUR TWI on the near-term inflation outlook. CACIB keep EUR longs against both USD* and CHF*.  Source: Credit Agricole CIB Research The article is published by one of the foremost sources of Forex trading information. Link to the original article above. from eFXNews
  • Consumer Confidence Unexpectedly Drops On Inflation, Rate-Hike Fears UMich consumer sentiment declined from 100.7 to 97.8 in the preliminary November print, disappointing expectations of a small rise as anticipation of a pickup in inflation and higher interest rates weighed on the gauge. Even with the decline, sentiment was the second-highest since January, reinforcing other reports that Americans remain optimistic about employment and the economy. Other… View On WordPress
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UK inflation rate jumps to 1.6%
Inflation hit its highest rate since July 2014 last month as air fares and food prices rose.
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Inflation rate jumps to 5.58 pc
Ukraine’s Finance Minister reveals inflation rate, exchange rate forecasts
Finance Minister of Ukraine Natalie Jaresko hopes that the economic growth in 2016 will be 2% of GDP, the inflation rate will be at the level of 12% and the exchange rate will be UAH 24.1 /USD 1.
Eurozone Inflation Rate Falls Sharply Despite Drop in Jobless Rate
Eurozone Inflation Rate Falls Sharply The eurozone’s annual rate of inflation fell more sharply than expected in May despite a drop in the jobless rate to a seven-year low, a combination that is likely to reinforce the European Central Bank’s reluctance to quickly unwind its stimulus programs.
Singapore Inflation Jumps
Singapore Inflation Jumps Singapore's consumer inflation was higher than expected in March, highlighting a stubborn problem the central bank moved to tackle earlier this month with a surprise tightening of monetary policy.
Inflation Jumps in Australia
Inflation Jumps in Australia Australian consumer prices rose 0.8% in the December quarter and climbed 2.7% from a year earlier, numbers that were significantly higher than expected.
U.K. Households Squeezed as Inflation Jumps in May
U.K. Households Squeezed as Inflation Jumps Consumer prices in the U.K. rose in May at the fastest annual rate for almost four years, intensifying a squeeze on households just as the country faces a prolonged spell of political uncertainty.
Dollar Gains After U.S. Inflation Jumps in May
Dollar Gains After U.S. Inflation Jumps in May The dollar rose against major currencies after a report showing consumer prices soared in May lifted Treasury bond yields.
Indian Inflation Jumps to Seven-Month High
Indian Inflation Jumps to Seven-Month High Indian inflation rates continued to accelerate in September, adding to concerns that the country's central bank is likely to increase key interest rates again.
Euro Zone's Inflation Jumps Far Above Target
Euro Zone's Inflation Jumps The rate of inflation in the euro zone soared to a full percentage point above the European Central Bank's preferred level in September. But signs that the economy is flagging badly mean the central bank is still likely to ease its policy stance in coming months.
Pound Jumps After Inflation Data Tests BOE's Patience
The British pound hit a one-year high against the dollar after official figures showed inflation accelerated sharply in August, reinforcing expectations that the Bank of England may soon be forced to raise interest rates.
Venezuela Inflation Jumps Sharply as Shortages Rise
Venezuela Inflation Jumps Sharply as Shortages Rise Venezuela's consumer prices surged in December at the fastest pace in nearly three years as the oil-rich South American country grappled with severe shortages of consumer goods, the central bank reported.
Stac
Is it possible to estimate individual rate of inflation for a person as against the avg inflation rate for that country? Even though normally we all use a specified inflation rate per country for financial calculations (i.e real returns, salary increases, etc..) isn't it possible for the inflation rate to have different ...
Why is a Vanguard fund based on U.S. treasury inflation-protected securities (TIPS) returning more than the rate of inflation? VIPSX says it has returns of >= 5% over 5 years and almost 9% in the last year. It appears to be based on U.S. inflation-protected securities. However, U.S. treasuries are returning near zero, and ...
Calculating composite rate from fixed rate and inflation rate for I-bonds For I-bonds: Composite rate = [Fixed rate + (2 x Semiannual inflation rate) + (Fixed rate x Semiannual inflation rate)] I wonder how to understand the above way of calculating the composite rate?...
Home loan repayment: Indian inflation rate vs Interest rate vs Investment in USA I am getting a home loan in India for 8.65%, 30 year term. I work in USA in H1B visa for a US based product company. How should I go about the repayment: Accelerated - say 6 to 7 years Full term - ...
Determining annual inflation rate from bimonthly cpi growth rate? I've been unable to find a concrete answer to this question so I assume I am overlooking something incredibly simple. In order to determine the real interest rate, I am required to use the nominal ...
How do I convert an annual inflation rate into a monthly rate? For the sake of argument, let's say that the annual rate is 12%. What is the corresponding monthly rate and how do I compute that? I'm assuming it's not as simple as 1%, and there is some compound ...
AC
In normal cirucmstances is there a short run tradeoff between the rate of inflation and the rate of unemployment? Yes. Inflation causes businesses to have to cut costs, and labor is one of the easily cuttable costs. See the Phillips Curve.
What happens to the future value of money when the inflation rate exceeds the interest rate?
What is nominal interest rate minus the expected rate of inflation? The expected real interest rate.
What is the unemployement rate and inflation rate for England? the unemployment rate in England is 7.90% as of July. the inflation rate in England is 1.3%
What does the inflation rate indicate?
How can you lower the inflation rate?
What is the inflation rate in America?
How inflation rate is calculated?
How do you figure inflation rate?
What is the inflation rate since 1885?
What is Australia's rate of inflation? Well according to the 2007 estimates (not sure who made these estimates) the Australian rate of inflation is 3%. The official CPI (Consumer Price Index) issued Quarterly from the 'Australian Bureau of Statistics' (/>
What is the effect of inflation on the discount rate?
What is relation between inflation and interest rate? Interest rate is the rate that borrowers pay extra for using money from a lender. Inflation is a rise in price level for goods and services over a period of time. When the price level rices, each unit of currency buys fewer goods and services. As a general rule of thumb, loaners like inflation and lenders dislike inflation because inflation decreases the value of money. This causes lenders to increase the interest rate, so that they do not become poorer than when they started off lending out money. Inflation increases interest rate. When lenders loans out money, they want to make a profit. I
What was the inflation rate from 2007 to 2009?
What was the inflation rate in Germany in 1930?
What is the rate of inflation in Pakistan for last 5 years?
What was the Russian inflation rate during the Great War?
What is the expected inflation rate for 2010?
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Carney Says Rate Hike Needed to Meet Inflation Goal - Nov.02 -- Bank of England Governor Mark Carney speaks at a news conference in London about the decision to raise interest rates by 25 basis points to 0.5%.
RBI keeps repo rate unchanged at 6% on back of rising inflation, lowers growth forecast - RBI kept the repo rate unchanged at 6 per cent. The reverse repo rate too has been kept at 5.75 per cent. Subscribe to Times Of India's Youtube channel here: ...
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