China's consumer inflation steady amid firming economy — China Focus

  • China's consumer inflation steady amid firming economy — China Focus

China's consumer inflation steady amid firming economy — China Focus

The figures mean that many people's take home pay is going up by less than price increases for essentials like food and clothes.

On the hike in food prices, the ONS said: "For the past two years, the price changes for food in the United Kingdom remained well below the other countries".

Mr Ramsey said goods inflation had been accelerating fast over the last five months, and reached 2.5% year-on-year during March - the highest rate since June 2013.

Sterling rose momentarily following the announcements before slipping back to a 0.1% drop against the U.S. dollar at 1.241, and a 0.1% fall versus the euro at 1.170.

Inflation has jumped in the past year because of the pound's decline since the Brexit vote and that, coupled with lackluster wage growth, is eating into the spending power of consumers, the engine of the economy.

Consumer prices increased in March by 2.3 per cent compared with a year earlier, the Office for National Statistics said on Tuesday, in line with economists' forecasts in a Reuters poll.

China's producer prices rose for the seventh straight month in March from a year earlier. "This will affect the path of inflation because plane ticket prices soar close to the holiday".

China's consumer price inflation edged up to 0.9 percent year-on-year, slightly softer than expected and compared with 0.8 percent in February.

Core inflation figures, which strip out volatile goods like oil and food, actually fell, dropping from 2.0% in February, to 1.8% in March. Costs for health care, housing, transportation and communication all were seen rising.

"It is very unlikely wages will be able to keep pace, leading to a squeeze in the spending power of United Kingdom shoppers".

For years, the world economy has been mired in tepid inflation or deflation which, if persistent, tends to be bad for industrial prospects and economic growth because customers delay purchases in the hope of getting cheaper deals in the future, starving companies of business and funds.

The largest upward impact came from food and non-alcoholic beverages, climbing 0.4% between February and March after falling 0.6% over the same period in 2016.

The inflation for clothing and footwear increased to 4.60% in March 2017, while the CPI inflation of fuel and light surged to 5.56% in March 2017.

United Kingdom living standards are under more pressure than at any time in 2 1/2 years and the squeeze is getting tighter. In the latest three months, the jobless rate remained at 4.7 percent, the lowest since 2005, and the number of people in work rose by 39,000 to a near-record 31.8 million.