UK Inflation

Dollar weakness and strong job market figures help pound rally

Markets expect rate increase to take effect in 2016 amid lack of consensus among MPC members.

Consumer Price Index shrinks from 0.3% to 0% but was unchanged in the year to February 2015.

OBR has upgraded their short-term GDP growth forecasts at 2.5% in 2015.

BoE inflation survey on Friday is key, but the market will wait for the US jobs data to be released on Friday.

In February, Sterling was up 3% vs dollar, climbs to 2.5% vs euro.

UK inflation forecast to be lower than previous month as Greek bailout issue weighs on market.

Bank of England (BoE) chief Mark Carney said on Thursday (12 February) that British inflation could turn negative and that he expected stronger growth on the back of lower oil prices.

UK inflation at 0.5% in December is no need for alarm, says the Chancellor.

Edmund Shing says that ultra-low interest rates means you should give your cash savings a workout

Out of nine members, Ian McCafferty and Martin Weale voted for a hike in the Bank Rate to 0.75% while the rest wanted to hold.

Inflation rose to 1.3% in October, well below the Bank of England's target rate of 2%

September inflation data and latest BoE inflation report indicate more downside risks to UK economy.

The Bank of England governor says it is probable he will have to write a letter to the Chancellor.

Pound already under pressure with no strong data support.

Sterling 1.67% off eleven-month low of 1.5952 touched on 3 October.

The ONS says that CPI inflation fell to 1.5% in the year to August, down from 1.6%.

Travellers face the annual hike in rail fares as politicians look to election promises.

The US dollar rallied against most majors as Yellen said the overall view of the US economy is positive.

All the measures of consumer price inflation released surprised markets on the higher side in a big way.

ONS says CPI grew by 1.9% in June, an acceleration on May, putting pressure on household incomes.

For Mark Carney, BoE policy review provides an opportunity to clarify present situation or future.

DWP data shows housing costs and falling wages push 600,000 more below absolute poverty line.

At the BoE inflation report hearings, the market will be looking for more cues for Sterling as governor Carney has already given a big verbal boost to the currency.

ONS said UK CPI inflation fell to 1.5% in May, but higher commodity prices may force this back up.

UK consumer price and factory gate inflation data and Germany ZEW survey are watched ahead of US CPI inflation and housing starts.

Week to June 20 marked by FOMC policy decision and policy meeting minutes from BoE, RBA and BoJ.

Inflation data and BoE minutes next week will be carefully watched to see if indications substantiate what Carney said.

The people of UK expect the price rise to slow down in the years ahead, according to a BoE survey.

Higher transport costs drives up CPI inflation, but falling food prices offset some of increase.