Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Inflation Declines Slower Than Expected, Dampening Hopes of Immediate Rate Cuts

by April 17, 2024
April 17, 2024
Inflation Declines Slower Than Expected, Dampening Hopes of Immediate Rate Cuts

Inflation fell more slowly than expected last month thanks to strong petrol and communication goods price pressures, casting doubt on hopes for immediate rate cuts by the Bank of England.

Despite a drop in the consumer price index to 3.2% in March, from 3.4% in the previous month, the rate of decline falls short of forecasts by City analysts and the central bank, signalling potential delays in monetary policy adjustments.

Strong price pressures in sectors such as petrol and communication goods contribute to the tempered decline in inflation, amplifying uncertainties about the timing of future rate cuts. While food and energy inflation ease, elevated prices in the transport and communications sectors keep the headline consumer price index higher than anticipated.

Grant Fitzner, chief economist at the Office for National Statistics (ONS), attributes the slower decline in inflation to high fuel costs, influenced by a sharp rise in international oil prices amid tensions in the Middle East.

The pace of inflation decline, exceeding the Bank of England’s forecasts, reinforces speculations that the central bank may defer rate cuts until later in the year. With services inflation dropping to 6% from 6.1% in February, and core inflation falling from 4.5% to 4.2%, the Bank may opt for cautious monetary policy adjustments, closely monitoring economic indicators and market dynamics.

Analysts predict a gradual return to the official 2% inflation target over the spring, driven by factors such as a reduction in the energy price cap. However, concerns about price pressures persist, fueled by increases in the minimum wage and household bills tied to inflation, alongside geopolitical tensions impacting international energy prices.

Market expectations for the scale of interest rate cuts by the Bank of England have significantly diminished, with investors now anticipating two or three reductions of 0.25 percentage points this year. Bank Governor Andrew Bailey emphasises the receding nature of UK inflation but underscores the need for careful consideration amid global economic dynamics, contrasting with the approach of the US Federal Reserve.

As the UK navigates through inflationary challenges and economic uncertainties, the pace and scale of future monetary policy adjustments remain subjects of intense scrutiny, with implications for economic growth, unemployment, and overall market stability.

Read more:
Inflation Declines Slower Than Expected, Dampening Hopes of Immediate Rate Cuts

0
FacebookTwitterGoogle +Pinterest
previous post
New data suggest Welsh employees more focused on AI skills development
next post
Long-Term Sickness Absences Hit Record High

You may also like

What Are Hydroponic Systems and How Can They...

December 22, 2022

New Business Secretary announces £95m funding for super-materials...

November 4, 2022

5 Top Steps to Protect Your Business from...

February 8, 2024

Empowering Women’s Health in the Workplace: A Strategic...

August 28, 2024

InPost acquires struggling Yodel in deal to fast-track...

April 17, 2025

Festive season fuels 2.5 million visits to the...

December 23, 2022

ASOS explores sale of Topshop brand as part...

October 30, 2023

Secrets of Success: Fergus Bailie CEO of Bailie...

October 5, 2023

Experts predict that the US stock market will...

April 14, 2025

How to Position Your Business to Attract the...

May 20, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Maybe Most People Do Not Want Teacher-Led Public School Prayer—But They Do Want Chaplains

      June 27, 2025
    • Flashback: The debate night against Trump that threw Biden’s reelection campaign into a free fall

      June 27, 2025
    • How to Improve your Trading Odds and Increase Opportunities

      June 27, 2025
    • UK Export Finance unveils new tools to boost SME global trade

      June 27, 2025
    • Republicans raise alarm over US vulnerability to mass drone strikes after Israel-Iran conflict

      June 27, 2025
    • Manchester businessman cleared of hacking charges in ICO case

      June 27, 2025

    Categories

    • Business (8,329)
    • Investing (2,075)
    • Politics (15,826)
    • Stocks (3,173)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved