Good morning.
One more month, another rise in inflation.
The consumer price index rose to 9.4% in June, an increase from 9.1% in the previous month and a maximum of 40 years.
Once again, energy and food were the main drivers of the increase, which also covered spending during the Jubilee holiday weekend.
The figures are likely to increase pressure on the Bank of England to produce a sharp rise in interest rates at next month’s MPC meeting.
The bank has predicted that inflation will reach more than 11% in October when the energy price cap rises again. However, it must also balance efforts to curb prices with the risk of the UK falling into a recession.
5 things to start the day
1) Train operators seek to eliminate rail fares at peak and off-peak hours Passengers could face an increased pricing model in the style of airlines
2) Why the reduction in wages for British workers will last even longer than previously feared As companies run out of cash for staff, short-term measures to support income are fading
3) A million viewers leave Netflix Success of Stranger Things prevents even worse exodus
4) The weather is too hot for solar panels.
5) Britain dries up as waste water industry causes leak Another ban on hoses is planned in the UK, with water companies in the spotlight on waste and leaks
What happened overnight
Shares of Netflix rose nearly 8% in out-of-hours operations last night after the “better-than-expected” loss of streaming giant 1 million subscribers.
Asian stocks have picked up a global upturn this morning, as strong profits from U.S. companies and the expected resumption of Russian gas supplies to Europe have helped lift sentiment and allay fears of a recession, while the dollar was close to the two-week lows.
MSCI’s broader Asia-Pacific stock index outside of Japan rose 1.1% in initial Asian trade, driven by a 1.5% increase in Australia, with a large amount of resources, a 1.1% increase in South Korean shares and a 1.5% jump in Hong Kong shares. The Japanese Nikkei rose 2.1%.
Arrive today
- Economy: Consumer Price Index (UK), Producer Price Index (UK), Retail Price Index (UK), Interest Rate Decision (China), Consumer Confidence (EU)
- Corporate: Centamin (temporary); Antofagasta, Liontrust Asset Management, Premier Foods, Royal Mail (commercial update)