Rolling coverage of the latest economic and financial news
- Latest: UK consumer credit rose in May, first time since August 2020
- Consumer credit borrowing outstrips repayments…due to car loans and personal loans
- Households put less into bank accounts, as shops and hospitality reopened
Earlier:
- SMMT: UK jobs at risk without more battery factories
- Nationwide: Prices jumped 13.4% in last year in race to avoid stamp duty…
- …but outlook is “harder to foresee”
Inflation in Germany has eased, but remains above the official European Central Bank’s target….and may head higher this summer.
Harmonised consumer price inflation in Europe’s largest economy rose by 2.1% year-on-year in June, down from May’s 2.4% – but above the ECB’s goal of just below 2%.
– #German #inflation falls slightly to 2.3 percent in June
– In May, the rate of inflation had climbed to 2.5 %, its highest level since September 2011
– Experts assume that inflation will rise again in the coming months and reach 3 or 4 % https://t.co/UCu3JHGdt7
In July, the full base effects from the VAT reversal will show for the first time, probably pushing inflation to above 3%. A continuing surge in headline inflation together with what currently could be the most fertile breeding ground for second-round effects will further fuel the tapering debate.
Higher producer prices on the back of supply chain disruptions, higher commodity prices and the gradual reopening of the economy are all impacting consumer prices.
According to data from regional states, prices for household goods, services and hospitality services were the main drivers of headline inflation, with food prices and prices for leisure activities slightly taking off inflationary pressure in June. But don’t be fooled by today’s drop in headline inflation – there is more to come soon.
German inflation cools off but about to resurge soon | Snap | ING Think – The drop in German headline inflation masks another surge that we think is around the corner, adding to an increasingly heated debate at the ECB about… https://t.co/D8YlZyqQP3
Overseas business leaders will no longer need to quarantine when arriving in England if their trip is likely to be of significant economic benefit to the UK, the Government has announced.
Press Association’s Simon Neville explains:
Company executives wishing to travel to England to make a “financial investment in a UK-based business” or for “establishing a new business within the UK” will be exempt but they will need written permission first.
The Department for Business said: “This exemption is designed to enable activity that creates and preserves UK jobs and investment, while taking steps to ensure public health risks are minimised.”
Related: Business leaders arriving in England granted exemption from Covid quarantine