EU warns GDP could fall 1.5% after Putin’s latest gas threat
Another month, another rise in inflation.
The consumer price index jumped to 9.4% in June, from 9.1% the previous month and another 40-year high.
Once again, energy and food were the main drivers of the increase, which also covered spending over the Jubilee bank holiday weekend.
The figures are likely to increase pressure on the Bank of England to deliver a big interest rate hike at next month’s MPC meeting.
The Bank expects inflation to peak at over 11% in October when the ceiling on energy prices rises again. However, it must also balance efforts to rein in prices with the risk of tipping Britain into recession.
5 things to start your day
1) Rail operators seek to remove rail fares at peak and off-peak hours Passengers could instead face an airline-style peak pricing model
2) Why Britain’s worker wage squeeze will last even longer than previously feared As businesses run out of cash to return to staff, short-term measures to support revenue fade
3) One Million Viewers Abandon Netflix The success of Stranger Things prevents an even worse exodus
4) The weather “too hot” for solar panels Power output during the heatwave falls below levels typically seen in the spring
5) Britain dries up as wasteful water industry causes leak Another hosepipe ban looms in the UK as water companies come under fire for waste and leaks
What happened overnight
Shares of Netflix rose nearly 8% in after-hours trading last night following the streaming giant’s “better than expected” loss of 1 million subscribers.
Asian stocks extended their global rally this morning as strong US corporate earnings and an expected resumption of Russian gas supplies to Europe helped lift sentiment and ease fears of a recession, while the dollar was mired near its lowest level in two weeks.
MSCI’s broadest index of Asia-Pacific stocks outside Japan jumped 1.1pc at the start of trade in Asia, led by a 1.5pc jump in resource-rich Australia, a 1.1pc gain in South Korean stocks and a 1.5pc jump in Hong Kong stocks. The Japanese Nikkei jumped 2.1pc.
- Economy: Consumer Price Index (UK), Producer Price Index (UK), Retail Price Index (UK), Interest Rate Decision (China), Consumer Confidence ( EU)
- Company : Centamin (acting); Antofagasta, Liontrust Asset Management, Premier Foods, Royal Mail (trade update)