Following the highest rise in UK inflation for four years, David Kerns, corporate commercial lead for currency specialists, Halo Financial, commented,
“This morning’s inflation data report caught the markets off guard, with UK Consumer Price Inflation climbing to its highest level in four years, up to 2.9% year on year, way ahead of consensus.”
“The UK’s consumers are now feeling the squeeze on their incomes more than ever, as food, energy and clothing costs rise, driven by the demise of Sterling, while, at the same time, wage increases fail to keep pace.”
“Although inflation is now running well in excess of then Bank of England’s 2% target rate, today’s release is unlikely to sway the hand of the Monetary Policy Committee members to consider raising interest rates now at such a delicate time.”
The UK’s consumers are now feeling the squeeze on their incomes more than ever.
“With the UK economy so fragile and the political environment far from certain, the Bank of England (BoE) will need to tread carefully and weigh up what can be done to maintain economic support – without driving the Pound lower and still stoking further inflationary pressures.”
“Increased inflation is also a concern for UK businesses, who will feel the pinch on their margins and investment opportunities.”
Sterling remained steady after the announcement, even strengthening slightly against the US Dollar as the news broke.
About Halo Financial
Halo Financial is a leading UK foreign exchange brokerage, offering a comprehensive range of services to individuals and businesses since its inception in 2005. The business prides itself on offering a flexible and personalised approach for each of its clients, simplifying the seemingly complex foreign exchange market to maximise savings in currency transactions, protect against currency risk and make money go further.
Staffed by qualified technical analysts, the company is authorised by the Financial Conduct Authority and HM Revenue and Customs.
“Excellent”, “Reliable”, “Professional”, “Knowledgeable”, and “Helpful”– just some of the great feedback received as a Gold Trusted Service Provider for Feefo.com. The team at Halo are proud that customers rate their services so highly and are happy to recommend to others. The company is always striving to provide the best possible service and to innovate services and products in line with customers’ ever-evolving needs.
Halo Financial won Best Customer Focus category in the 2016 Best Business Awards; received OPP Gold for Best Supporting Service; the Gold Award for Financial Support and Innovation from Relocate Magazine, Commendations in the 2016 and 2017 Moneyfacts Awards and has 5 out 5 Star Customer Gold Merchant Status via independent review website, Feefo.com, winning their Gold Trusted Service award.
For more information, infographics and the latest currency insights, visit www.halofinancial.com/news