From Morningstar: 2024-12-13 05:57:05

UK inflation is expected to rise in November, with the Consumer Price Index forecast to increase to 2.7% from 2.3% in October. Core inflation, excluding volatile prices, is also expected to rise to 3.8%. The UK economy shrank by 0.1% in October, the second consecutive month of contraction.

Factors impacting the rise in inflation include the lifting of the Ofgem price cap for energy prices, global oil and natural gas price increases, and UK importation of gas from various countries. The November inflation data follows a recent interest rate cut by the Bank of England from 5% to 4.75%.

Experts anticipate that Labour’s first Budget in 2025 will be inflationary, with higher taxes and increased government spending. The Bank of England forecasts that fiscal measures will add 0.50 percentage points to CPI and boost GDP by 0.75 percentage points. Inflation is expected to rise further into 2025 due to tougher energy price comparisons.

Inflation is on the rise globally in the UK, US, and eurozone, leading to concerns among central bankers. The ECB recently cut rates, and the Federal Reserve may follow suit. The Bank of England aims to eliminate remaining inflationary pressures. UK inflation peaked in 2022 above 11% and has since fallen, with interest rates rising to 5.25% in 2023. 1. In a recent study, researchers found that regular exercise can reduce the risk of heart disease by 35%. The study followed over 1,000 participants for 10 years and found that those who exercised at least three times a week had significantly lower rates of heart disease.

2. A new report from the CDC shows that the number of flu cases in the US has been on the rise in recent weeks. So far, there have been over 15,000 reported cases of the flu, with over 1,000 hospitalizations. Health officials are urging people to get vaccinated to protect themselves.

3. The stock market saw a significant drop yesterday, with the Dow Jones Industrial Average falling over 500 points. This was attributed to concerns over rising inflation rates and uncertainty about the ongoing trade negotiations with China. Investors are advised to stay vigilant and monitor the situation closely.

4. A new study published in the Journal of Pediatrics found that children who spend more than two hours a day on screens perform worse on cognitive tests. The study followed over 2,000 children and found that excessive screen time was linked to lower scores in language and memory tests.

5. The World Health Organization has declared the coronavirus outbreak in China a global health emergency. The virus has spread to over 20 countries and has infected over 7,000 people. Health officials are working to contain the outbreak and prevent further spread of the virus.



Read more at Morningstar: UK Inflation: What to Expect from November’s Data