The UK is set to release its inflation figures for April on Wednesday, May 25th. Economists expect inflation to fall back into single figures, with the consumer price index (CPI) forecast to fall to 8.3%. This would be the first time since November 2021 that inflation has been below 10%.
The fall in inflation is expected to be driven by several factors, including the recent fall in energy prices. The UK government has also introduced several measures to help families with living costs, such as a £200 energy bill rebate and a £150 council tax rebate.
However, there are some concerns that the fall in inflation may not be as sharp as hoped. This is because food prices have been rising sharply in recent months. The Resolution Foundation, a think tank, has warned that food prices are now the biggest driver of inflation in the UK.
The Bank of England (BoE) will closely watch the inflation figures. The BoE has raised interest rates five times since December in an attempt to bring inflation under control. However, the BoE has said it will only be satisfied once inflation reaches its 2% target.
The release of the inflation figures will come a day before regulator Ofcom announces the new energy price cap. The cap is expected to drop bills by around £450 per household from the current level, and this will provide some relief to families struggling with the cost of living.
Overall, the UK economy is facing several challenges. Inflation is high, and the cost of living is rising. But the economy is showing such signs that it is starting to slow down, which could help to bring inflation under control. I will closely watch the release of the inflation figures on Wednesday for signs of how the economy is performing.
Here is a summary of the key economic events that are expected to take place in the UK this week:
- Wednesday, May 25th: UK inflation figures for April
- Thursday, May 26th: Bank of England’s Monetary Policy Committee (MPC) meeting
- Friday, May 27th: UK retail sales figures for April
The MPC is expected to raise interest rates by 0.25% at its meeting on Thursday. This would be the sixth consecutive rate rise. The MPC is under pressure to act to bring inflation under control. However, some concerns raising interest rates too quickly could damage the economy.
The retail sales figures for April are expected to show a decline, and this is because households are cutting back on spending due to the cost of living crisis.
In addition to the critical economic events listed above, several other factors could affect the UK economy this week. These include:
- The ongoing war in Ukraine
- The COVID-19 pandemic
- The global economic slowdown
The UK economy faces several challenges, but there are also some positive signs. I will closely watch The inflation figures on Wednesday for signs of how the economy is performing.
The UK inflation figures for April were released on Wednesday, May 25th. As expected, inflation fell back into single figures, with the consumer price index (CPI) coming in at 8.3%. This was the first time since November 2021 that inflation had been below 10%.
Several factors, including the recent fall in energy prices, drove the fall in inflation. The UK government has also introduced several measures to help families with living costs, such as a £200 energy bill rebate and a £150 council tax rebate.
However, there are still some concerns about inflation. Food prices have been rising sharply in recent months, and the Resolution Foundation has warned that food prices are now the biggest driver of inflation in the UK.
The Bank of England (BoE) is expected to raise interest rates by 0.25% at its meeting on Thursday, May 26th. This would be the sixth consecutive rate rise. The BoE is under pressure to act to bring inflation under control. However, some concerns raising interest rates too quickly could damage the economy.
The retail sales figures for April are expected to show a decline, and this is because households are cutting back on spending due to the cost of living crisis.
Overall, the UK economy is facing several challenges. Inflation is high, and the cost of living is rising. However, the economy is showing signs of this starting to slow down, which could help bring inflation under control. I will closely watch the release of the inflation figures on Wednesday and the MPC meeting on Thursday for signs of how the economy is performing.
UK inflation figures for April
The fall in inflation is expected to be driven by several factors, including the recent fall in energy prices.
However, there are some concerns that the fall in inflation may not be as sharp as hoped. This is because food prices have been rising sharply in recent months. The Resolution Foundation, a think tank, has warned that food prices are now the biggest driver of inflation in the UK.
Bank of England’s Monetary Policy Committee (MPC) meeting
The Bank of England’s Monetary Policy Committee (MPC) is scheduled to meet on Thursday, May 26th. The MPC is expected to raise interest rates by 0.25% at its meeting, the seventh consecutive rate rise. The MPC is under pressure to act to bring inflation under control. However, some concerns raising interest rates too quickly could damage the economy.
UK retail sales figures for April
The UK is set to release its retail sales figures for April on Friday, May 27th. Economists are expecting retail sales to have fallen in April, and this is because households are cutting back on spending due to the cost of living crisis.
Overall, the UK economy is facing several challenges. Inflation is high, and the cost of living is rising. But the economy is showing such signs that it is starting to slow down, which could help to bring inflation under control. I will closely watch the release of the inflation figures on Wednesday and the MPC meeting on Thursday for signs of how the economy is performing.
