. . World News – GB – UK inflation rises to 0. 7% with rising clothing prices ???? Live work

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In town, the FTSE 100 made a quiet start to the morning, down 18 points or 0. 3% at 6,347 points.

Insurance group RSA leads the rally, 4% after taking in £ 7. A $ 2 billion takeover bid from Danish firm Intact Financial and Tryg.

But overall, European markets are muted as recent optimism over the progress of a Covid-19 vaccine eases anxiety over the looming winter..

Yesterday’s disappointing US retail sales numbers (growth recorded to a six-month low) dampened the mood, leaving the European Stoxx 600 index flat this morning..

â ?? Initial vaccine euphoria is under pressure as Covid-19 cases continue to rise, highlighting the gap between detection and distribution.

With many US states implementing more restrictions and hospitalizing an additional 70,000 cases, the impact on the economy continues.

Weak retail sales from the US also poured some cold water on the sentiment, as the second wave had an impact on consumers ???? Propensity to spend. The continuation of any closure during the holiday season that would impede the citizens ???? Capacity to travel, while the latest data tends to indicate that the fiscal stimulus package is still needed to kickstart an interrupted recovery.

Looking ahead, Laith Khalaf, financial analyst at AJ Bell, predicts that inflation could pick up as companies try to offset their losses this year:

â ?? The current close may lead to some short-term fluctuations in the number, but the overall picture is one of low, gradually rising inflation. The economic damage of the epidemic means that many companies will not want to deter important customers by raising prices for some time in the future.

â ?? There is a legitimate question about whether all the fiscal and monetary stimulus thrown into the pandemic will create inflationary pressures in the future.. When confidence returns, we can see companies looking to offset losses by driving higher prices. While the pandemic has cost some of their livelihoods, we know that many people have already seen a push of their money from the forced economy, allowing them to endure future price increases..

Many economists predict that the current restrictions of Covid-19 will drag inflation down again in the short term.

ONS # data shows #UK CPI at 0. 7% in October 2020, up from 0. 5% in September. The increase is driven largely by rising food prices. & CLOTHES. The # Lockdown2 effect is likely to push inflation close to zero in the near term as restrictions stifle & activity. Pic. Twitter. com / FCbt1aGTew

Debapratim De, Deloitte’s chief economist, predicts that weak wage growth and high unemployment will keep inflation under control:

The inflation numbers for October came in slightly above expectations. However, it reflects an adverse environment for inflation, given the current background of weak wage growth, high unemployment rates and ample spare capacity..

â ?? Inflation will likely remain subdued until the economy regains most of the activity lost due to the epidemic. â €

Tom Stephenson, Fidelity International’s personal investment manager, suggests that the vaccine rollout should help the economy recover:

â ?? Inflation has risen to zero. 7% in October on the back of a slight rise in food. As prices head higher, the rallies are likely to calm down for a longer period. COVID-19 infections continue to rise, large swaths of the UK are subject to strict lockdown rules, spending opportunities are limited, and unemployment is rising.. This is not a recipe for inflation hitting the 2% target anytime soon.

â ?? However, there is light at the end of the tunnel in the form of a possible vaccine. Reopening the economy will revive animal lives. The widely discussed shift to negative interest rates appears less likely now and this is good news for investors. The Bank of England increased its quantitative easing program to encourage consumer spending and investment and must now keep its powder dry. a????

Used car prices also rose last month – in a sign that people are trying to avoid using public transportation due to the pandemic.

Used car prices increased by 1. 4% between September and October 2020, compared to 0. 2% fall between the same two months a year ago.

This upward movement continues from last month, which is said to be due to increased demand for used cars as people search for alternatives to public transportation..

despite rising to 0. 7% last month, UK inflation is still well below the 2% target:

While this graph shows how clothing and food had the largest upward contribution to the cost of living last month:

Good morning and welcome to our renewed coverage of the Global Economy, Financial Markets, Eurozone and Business.

Figures released this morning by the Office for National Statistics show that the Consumer Price Index rose to 0. 7% in October, up from 0. 5% in September. This is the highest in three months, after the CPI fell to just zero. 2% in August.

Most of the upward contribution to clothing prices has come from women’s clothing, says the Office for National Statistics, with smaller upward contributions from men’s and children’s clothing. .

â ?? Inflation rose slightly as clothing prices rose and returned to their normal seasonal pattern after this year’s turmoil. a????

â ?? The cost of food also increased, while used cars and computer games also saw prices rise. This was partly offset by lower energy and vacation costs.

Commenting on today’s inflation figures, the deputy national statistician for economic statistics, jathers_ONS: 1/2 photo. Twitter. com / JloneWJspT

Elsewhere, European stock markets are expected to be calm as investors consider further growth of Covid-19 cases and tightening restrictions..

Overnight, coronavirus cases in Tokyo recorded a record high of 493, and South Australia announced a six-day lockdown.

European Opening Calls: #FTSE 6328-0. 59% # DAX 13077 -0. 43% # CAC 5471 -0. 22% # AEX 599 -0. 33% # MIB 21370 -0. 30% # IBEX 7903 -0. 39% # OMX 1917 -0. 27% # STOXX 3455 -0. 39% # IGOpeningCall

Meanwhile, Bitcoin remains on alert – reaching a new three-year high of $ 18,000 overnight setting its record high.. . .

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Inflation, UK

World News – Great Britain – UK inflation rises to 0. 7% with rising clothing prices ???? Live work
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It& # 39; Not just food prices, the Covid pandemic has also helped push inflation to 7. 6% in India

Ref: https://www.theguardian.com

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