Britain’s economy shrank by a fifth in the last quarter, much worse than the US or the eurozone
- What the economists say
- UK faces ‘Nike Swoosh’ recovery
- Rishi Sunak says ‘hard times’ are here
- Newsflash: UK economy shrank 20.4% in Q2
- Worst slump on record…and worse than other countries
- But GDP did rise 8.7% in June
- Full story: Worst slump since records began
Meanwhile in America, inflation has risen faster than expected.
Consumer prices jumped by 0.6% in July compared to June, pushing annual inflation up to 1%.
#UnitedStates Annual #Inflation at 1.0% https://t.co/LjdvxZ14rQ pic.twitter.com/iGHD1DaFyr
US core inflation unexpectedly rose to 1.6% in July, rather than edging down to 1.1% as the consensus expected, as the prices of various travel-related items among other things started picking back up again pic.twitter.com/giBFhilu9U
July US CPI: on a year ago basis inflation up 1%, core pricing up 1.6%. Monthly food index declined 0.4% which will provide some relief to beleaguered consumers after rising 0.6% in June. Inflation remains a low risk to the outlook.
No theme is more important in the macro space right now than inflation. We are going to see a series of upside surprises in the inflation data… and it isn’t going to be “good” inflation. It’s going to be stealth “bad” inflation. Read everything you can about Stagflation.
The City continues to brush aside the UK’s slide into recession.
The FTSE 100 index has now jumped by 84 points today, or 1.3% to 6,238, the highest in nearly three weeks.