UK: lagging inflation
Article Abstract:
UK inflation could rise due to a skills shortage pushing up wage rates, according to Merrill Lynch. Unemployment could drop to under 7% in 1997, Merrill Lynch argues, and this could lead to higher average wages. Wages are the most important business cost, so higher wages will tend to mean higher inflation. Inflation is subdued over the short term with competition between retailers and low mortgage interest rates, but the rise could occur some 12 months from Sep 1996.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Growth optimism
Article Abstract:
Richard Jeffrey from Charterhouse forecasts stronger economic growth than expected for the UK in 1996. Consumer spending should help boost growth. Windfalls from sources such as the National Grid flotation should also aid growth. Consumer spending grew by 1.8% in 1995, and could rise to 3% in 1996. Inflation is likely to be subdued, aided by restraint from retailers. The Bank of England may press for higher rates of interest, and rates could rise from spring 1996.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: UK: nearing the peak. UK interest rates: inflation shock
- Abstracts: Getting the best deal you can. Crest to hit small deals
- Abstracts: Out of the Halifax. Unwarranted low prices
- Abstracts: On the right road. Courtaulds Textiles. Out of a spin
- Abstracts: Trinity Care: the word spreads. Tamaris banks on yet more beds. Westminster Health Care