Published: Thu, April 13, 2017
Medicine | By Daryl Nelson

China' CPI up 0.9%, PPI up 7.6% in March

China' CPI up 0.9%, PPI up 7.6% in March

"The CPI may stay muted in the near term, as agricultural supply side reform may continue to depress food prices and the headline CPI until the fourth quarter, which lowers the probability of aggressive monetary tightening, " said China International Capital Corporation in a research note. In 2016, air fares rose by 22% in March compared to a fall of 3.9% this year.

The ONS data showed food prices rose by an annual 1.2 per cent in March, their biggest increase in three years. The number of people claiming unemployment benefits jumped by 25.5k in March, well above expectations of a drop of 3k, while the prior month's figure was revised down.

Input prices, the amount British manufacturers pay for materials and fuel, recorded lower growth last month but remained at high levels, rising 17.9% annually in March.

Tesco Plc, the United Kingdom supermarket leader, said it would absorb some of the sterling-induced cost bump and keep prices low, which could ramp up pressure on competitors to do the same.

United Kingdom food prices saw their biggest annual increase in three years in March, according to the Office for National Statistics.

CPIH is the ONS's preferred measure of inflation, which includes costs associated with living in, maintaining and owning a home.

Sterling rose momentarily following the announcements before slipping back to a 0.1% drop against the USA dollar at 1.241, and a 0.1% fall versus the euro at 1.170.

Stephen Boyle, chief economist at Royal Bank of Scotland, said that with manufacturers' input prices growing at close to 18 per cent year-on-year, CPI would rise further in the coming months.

Outfield wall-scaling cat delays Marlins game
Marcell Ozuna had a night to remember Tuesday driving in a career-high six runs to fuel the Marlins' 8-4 win against the Braves . Outstanding!" said one Major League Baseball announcer as the cat leapt onto a chainlink fence and scaled the wall effortlessly.

Nonetheless, the MPC urged caution over a rates hike, with weakened pound since the Brexit referendum already affecting consumers as companies pass down their rising costs.

Members of the Bank's Financial Policy Committee (FPC) have also warned that a rapid rise in consumer debt fuelled by interest-free credit cards poses a risk to the United Kingdom financial system.

It is also important to note that inflationary pressures have been experienced across the region and have also been attributed to poor performance in the agriculture sector and increase in crude oil prices.

Ulster Bank's chief regional economist Richard Ramsey says the figures indicate that consumers in the north are experiencing the flawless storm of a simultaneous rise in the prices of food, petrol and gas/electricity bills for the first time since August 2013. The U.K.'s economic growth relies heavily on domestic demand, which is likely to falter as Britons' wages struggle to keep up with price increases.

Laurie Macfarlane, senior economist at the independent think tank New Economics Foundation, said: "Millions are struggling under record levels of debt".

United Kingdom living standards are under more pressure than at any time in 2 1/2 years and the squeeze is getting tighter.

But Dr Howard Archer, chief United Kingdom and European economist at IHS Markit, said: "Deteriorating consumer purchasing power and likely increasing business uncertainties and caution over Brexit are expected to take a mounting toll on growth and employment".

The number of people in work continued to increase - up by 39,000 on the latest quarter to 31.8 million, giving an employment rate of 74.6%, the joint highest since records began in 1971.

Like this: