BUSINESS LIVE: Inflation drops to 2.5%; Serco wins $247 million contract; Fuller’s is enjoying a strong Christmas season
By THIS IS MONEY
Updated:
According to the Office for National Statistics, the consumer price index fell to 2.5 percent in the year to December, amid falling hotel prices.
Among the companies with reports and trading updates today are Serco, Fuller’s, Currys, Hays, Vistry Group and Frontier Developments.
Inflation is falling marginally
‘Inflation dip in December won’t last long’
Thomas Pugh, economist at RSM UK, comments on the latest UK inflation figures:
The fall in inflation in December will not last long. The combination of businesses experiencing the big increase in labor costs imposed by the budget, tax increases and rising energy prices means inflation will exceed 3% in the spring, forcing Governor Bailey to write his first letter to Rachel Reeves.
Although the declining inflation level in December increases the chance of an interest rate cut in February, rising inflation this year means that the Bank of England will cautiously cut interest rates.
Inflation drops from 2.6% to 2.5%
Controversial Rachel Reeves was offered a surprise reprieve today as inflation dropped unexpectedly.
The head CPI Interest rates fell from 2.6 percent the month before to 2.5 percent in December, with core inflation also declining.
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