Westminster wrangling distracts from ongoing economic woes

The ongoing cost of living crisis and domestic politics have dominated the agenda this week in the UK.

The bunting from last weekend’s spectacular Platinum Jubilee Celebrations hadn’t even been packed away before the news was out that the Prime Minister would face a vote of no confidence on Monday. We discussed this in an article yesterday, so we won’t go into detail here. Needless to say, the fallout from this has been going on all week.

The biggest shock this week was in the form of fuel prices. On Wednesday, prices saw their biggest one-day hike since 2005. The price of fuel has been climbing and breaking new records every week, however this week it broke the new milestone of being £100 to fill up the average car in the UK. Analysts are suggesting that the average price of £2 a litre is now close (as for the first time we’ve now seen a UK forecourt charging this price, £2.02 in Twickenham.)

This week also saw news of new government plans to help extend home ownership. It came more in the form of allowing people to buy existing properties rather than building new homes.

Moving to currencies, despite some minor fluctuations, Sterling remains in a similar position against the Euro compared to this time last week. The picture is very similar when looking at the Sterling-Dollar pairing.

This week saw some big data be released from multiple different countries. In China, we saw CPI figures rise by 2.1%. In Australia we saw an Interest Rate rise, in Japan we saw GDP figures that were better than expected and in the EU we saw plans announced for an Interest Rate rise for the first time in over a decade.

Later on this afternoon we can expect to see CPI data out of the USA.

To finish on a lighter note, the popular TV show Neighbours, a staple of many a British home wrapped up its final scene after 37 years of filming. One of its most famous and surprising fans was none other than HM the Queen Mother!

Previous updates...

GDP falls for the second quarter in a row.

GDP falls for the second quarter in a row.

This week has been considerably quieter economic data front, perhaps a relief given the volume of negative news recently. US inflation figures were released on Wednesday with consumer prices rising 8.5% in July, the rate of increase has been calmed slightly as fuel prices fell. No increase was recorded in

BoE Governor: Expect 13%+ Inflation and a Recession!

BoE Governor: Expect 13%+ Inflation and a Recession!

The key update of the week is that the Bank of England has increased its interest rate by 0.5%, the largest increase since the Bank’s operational independence in 1997.  The rate rise comes on the back of a dismal economic forecast by the BoE that forecasted inflation rates of 13%

Fears of recession loom as inflation spirals and confidence declines

Fears of recession loom as inflation spirals and confidence declines

This week has been dominated by the fears of a looming recession following the release of key GDP and confidence data. Significant news was released on Thursday when it emerged that the US economy shrank for a second consecutive quarter. This technical recession is due to a 0.9% GDP contraction

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