UK inflation jumps past Bank of England target, hits 2.1%
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
SUNDAY, MAY 29, 2022
SUNDAY, MAY 29, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
UK inflation jumps past Bank of England target, hits 2.1%

Global Economy

Reuters
16 June, 2021, 12:55 pm
Last modified: 16 June, 2021, 01:01 pm

Related News

  • Rishi Sunak’s helicopter drop makes the bank of England’s life easier
  • BB governor calls on banks to discourage imports of luxury items  
  • Pak to offer cash aid for households under Tk18,000 monthly income
  • Gangs, inflation and political crisis bring Haiti economy to brink
  • Prince William holds future of British monarchy in his hands

UK inflation jumps past Bank of England target, hits 2.1%

Sterling was little changed by the ONS figures

Reuters
16 June, 2021, 12:55 pm
Last modified: 16 June, 2021, 01:01 pm
A woman in a protective mask is seen at Andreas Grocery store after it received a delivery of fresh fruit and vegetables, as the spread of the coronavirus disease (Covid-19) continues, in London, Britain, March 20, 2020. Photo :Reuters
A woman in a protective mask is seen at Andreas Grocery store after it received a delivery of fresh fruit and vegetables, as the spread of the coronavirus disease (Covid-19) continues, in London, Britain, March 20, 2020. Photo :Reuters

British inflation unexpectedly jumped above the Bank of England's 2.0% target in May when it hit 2.1% and looks set to rise further as the country re-opens its economy after its coronavirus lockdowns.

The rise in price growth from April's 1.5% was driven in large part by the comparison with prices in May 2020 when the country was in its first tight lockdown, especially for clothing, motor fuel, games and take-away food.

A Reuters poll of economists had pointed to a rise in inflation to 1.8%.

Investors around the world are assessing the risks of a sustained jump in inflation, especially in the United States where annual inflation hit 5.0% in May, the highest in almost 13 years, and where US President Joe Biden has proposed a $6 trillion stimulus package.

Jack Leslie, an economist at the Resolution Foundation think tank, said the speeding up of price growth from 0.3% in November to 2.1% in May represented the fastest six-month rise since sterling collapsed after the 2008-09 financial crisis.

"But UK inflationary pressures are different - and nowhere as near as large - as those causing fierce debate in the US," Leslie said.

Sterling was little changed by the ONS figures.

The BoE has said it expects inflation to hit 2.5% by the end of this year as the economy reopens after its coronavirus lockdowns and as global oil prices rise.

Core inflation, which excludes the price of food, energy and other volatile items, rose to 2.0% in the 12 months to May, the Office for National Statistics said.

Governor Andrew Bailey and most colleagues say the increase in inflation will be temporary and does not require the central bank to scale back its huge stimulus programmes. It is expected to leave policy unchanged on June 24 after its latest meeting.

But Chief Economist Andy Haldane said last week that the BoE's policymakers faced the "most ­dangerous moment" since 1992 when the government removed sterling from the European Exchange Rate Mechanism, a precursor to the euro.

There were signs of further price pressure ahead in Wednesday's data.

Prices paid by manufacturers for their inputs rose by 10.7% in the 12 months to May, the highest since September 2011, and the prices they charged rose by 4.6%, the biggest increase since January 2012.

Top News / World+Biz

UK / inflation / Bank of England

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Central bankers’ refusal to embark into ‘hard helicopter money’ experiment have been a good idea. Photo: Reuters
    Interbank exchange rate for dollar set at Tk89
  • A Regio regional passenger train operated by Deutsche Bahn AG travels on a bridge in Berlin. Photographer: Krisztian Bocsi/Bloomberg
    Why Germany is offering a summer of cheap trains
  • Patients opting to delay crucial treatment amid rising costs
    Patients opting to delay crucial treatment amid rising costs

MOST VIEWED

  • The logo of Gazprom Germania is pictured at their headquarters, in Berlin, Germany April 1, 2022. REUTERS/Fabrizio Bensch
    Russia's Gazprom continues shipping gas to Europe via Ukraine
  • FILE PHOTO: Chinese and US flags flutter near The Bund, before US trade delegation meet their Chinese counterparts for talks in Shanghai, China July 30, 2019. REUTERS/Aly Song
    US extends tariff exclusions on Chinese Covid-19 medical products
  • Russian Rouble coins are seen in front of displayed US Dollar banknote in this illustration taken, February 24, 2022. REUTERS/Dado Ruvic/Illustration
    Russia working on new mechanism to service foreign debt
  • A worker sits on a truck being loaded with coal at a railway coal yard on the outskirts of the western Indian city of Ahmedabad, Nov 25, 2013. REUTERS/Amit Dave
    Coal India to import for first time in years as power shortages loom
  • The Federal Reserve building is seen before the Federal Reserve board is expected to signal plans to raise interest rates in March as it focuses on fighting inflation in Washington, US, January 26, 2022. REUTERS/Joshua Roberts
    Fed carrying $330b in unrealized losses on its assets according to Q1 financial statement
  • Picture: Collected
    Sri Lanka to pay $72.6m for 90,000 T Russian oil, minister says

Related News

  • Rishi Sunak’s helicopter drop makes the bank of England’s life easier
  • BB governor calls on banks to discourage imports of luxury items  
  • Pak to offer cash aid for households under Tk18,000 monthly income
  • Gangs, inflation and political crisis bring Haiti economy to brink
  • Prince William holds future of British monarchy in his hands

Features

Central bankers’ refusal to embark into ‘hard helicopter money’ experiment have been a good idea. Photo: Reuters

Venice has a 400-year-old Covid monetary lesson

2h | Panorama
Aiman R Khan. Illustration: TBS

Why ‘marry your rapist’ court orders are not always what they seem

4h | Thoughts
Photo: Collected

Top 3 The Ordinary products that give extraordinary results

6h | Mode
Photo: Courtesy

KVN Beauty: Channel your inner Bangalee baddie

6h | Mode

More Videos from TBS

Paper industry worth thousands of crores in Bogura

Paper industry worth thousands of crores in Bogura

1h | Videos
Photo: TBS

Tips to help you become a successful lawyer

7h | Videos
People bid adieu to Abdul Gaffar Chowdhury

People bid adieu to Abdul Gaffar Chowdhury

7h | Videos
Photo: TBS

Harassment over 'indecent clothing': Women gather at Narsingdi railway station to protest, show solidarity

7h | Videos

Most Read

1
Bangladesh Bank GM, DGM’s designation changed
Banking

Bangladesh Bank GM, DGM’s designation changed

2
Corporates go cashless…tax cut on cards
NBR

Corporates go cashless…tax cut on cards

3
Photo: Courtesy
Panorama

Misfit Technologies: A Singaporean startup rooted firmly in Bangladesh

4
British International Investment (BII) CEO Nick O’Donohoe. Illustration: TBS
Economy

BII to invest $450m in Bangladesh in 5 years

5
Representational image. Picture: Pixabay
Economy

Govt raises regulatory duty to discourage imports of 130 products

6
Photo: Collected
Industry

Spanish recycled cotton producer opens new facility in Bangladesh

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab