UK Economics Update Inflation Report highlights squeeze on real pay Today’s figures from the ONS highlight how employees’ real earnings have fallen to levels last seen in 2003. And the Bank of England’s February Inflation Report suggested that the squeeze on... 13th February 2013 · 1 min read
UK Data Response Bank of England Inflation Report (Feb.) The Bank of England has presented another gloomy Inflation Report, showing inflation projected to be stronger over the next couple of years even though the recovery is still expected to be sluggish... 13th February 2013 · 1 min read
UK Data Response Consumer Prices & Producer Prices (Jan.) Inflation held at 2.7% for the fourth month in a row in January and is likely to rise further before falling later this year. Tomorrow’s Inflation Report will paint a nasty picture of weak growth and... 12th February 2013 · 1 min read
UK Economics Update What would more flexible inflation-targeting achieve? Mark Carney suggested last Thursday that, rather than changing the monetary framework altogether, introducing more flexibility into the existing inflation-targeting regime is his preferred option. The... 11th February 2013 · 1 min read
UK Economics Focus Will inflation throw another spanner in the works? The continued strength of inflation, resulting in further falls in households’ real pay, raises the question of whether we can ever look forward to a period when it finally eases and so supports... 11th February 2013 · 1 min read
China Economics Update Surge in credit causes headache for policymakers Policymakers will pay little attention to last month’s drop in inflation or the acceleration in exports, given the usual volatility around Chinese New Year. But a surge in off-balance-sheet bank... 8th February 2013 · 1 min read
Latin America Economics Update Brazil inflation: from bad to worse Brazil’s inflation data are going from bad to worse. Headline inflation rose to a 12-month high of 6.2% last month and is likely to remain above 6% for at least the first half of this year. The... 7th February 2013 · 1 min read
China Economics Update Inflation Monitor (Jan.) The usual rollercoaster around Chinese New Year will have caused inflation to fall in January before sending it soaring this month. Once the seasonal volatility has faded, current evidence suggests... 7th February 2013 · 1 min read
Emerging Europe Economics Update Russia: pick-up in inflation rules out near-term rate cuts Russian inflation picked up to its fastest rate since late 2011 in January, giving the Central Bank a strong argument to withstand pressure from the government to start easing policy in the face of... 5th February 2013 · 1 min read
Africa Economics Update Inflation taking divergent paths across the region Inflation remains lower in both east and South Africa compared to west Africa, but a combination of slowing inflation in west Africa and the fact that central banks here set higher inflation targets... 1st February 2013 · 1 min read
Europe Data Response Euro-zone Flash CPI (Jan.) & Unemployment (Dec.) January’s fall in euro-zone inflation is good news for consumers, but with unemployment still at a record high in December, incomes and spending will remain under severe strain. 1st February 2013 · 1 min read
Emerging Europe Economics Update Inflation looks to have bottomed out Having dropped to a near-three-year low, EM inflation looks to have now bottomed out. Inflation is likely to rise further in the near term due to strengthening demandside pressures and increases in... 1st February 2013 · 1 min read
Asia Economics Update India's stubborn inflation limits room for further loosening The Reserve Bank of India (RBI) met expectations that it would cut its key policy rate today. However, the accompanying policy statement suggests there may be only limited further policy loosening... 29th January 2013 · 1 min read
Canada Data Response Consumer Price Index (Dec.) The surprising drop in December's official core inflation rate to 1.1%, from 1.2% in November, suggests that there is much more slack in the economy than most economists previously thought. With sub... 25th January 2013 · 1 min read
Latin America Economics Update Brazil: rising inflation narrows space for further easing A recent pick-up in inflation has reduced the space for further policy easing in Brazil, and we expect the Selic rate to remain at 7.25% until at least mid-year. Further ahead, if we are right to... 17th January 2013 · 1 min read
US Data Response Consumer Prices & Industrial Production (Dec. 12) Inflation dipped further below the Fed's 2% target in December, leaving it free to focus its policy efforts on reducing the still elevated unemployment rate. 16th January 2013 · 1 min read
