HomeTop Global NewsUK Inflation Rises to 4%, Dashing Hopes of an Interest Rate Cut

UK Inflation Rises to 4%, Dashing Hopes of an Interest Rate Cut

UK inflation rose by 4% in December, the Office for National Statistics (ONS) reported, thereby outpacing the 3.8% rise predicted by economists. Higher than the 3.9% rise in November, December’s inflation surge was largely driven by a 16% annual rise in tobacco prices, followed by alcohol, which experienced a 9.6% annual increase.

Stubborn inflation has dashed investor hopes that the Bank of England would soon contemplate the introduction of interest rate cuts. “Improving interest rate expectations in recent weeks has led to some forecasters predicting the first cut in the first half of 2024, with lenders slashing mortgage rates as they battle it out to retain their existing clients and attract new business,” Alice Haine, personal finance analyst at Bestinvest explained.

Haine added that this unexpected rapid rise in inflation has come as a blow to mortgage holders and prospective buyers, who had hoped for interest rate cuts to be introduced as a means of driving down mortgage rates.

Stocks Hold Steady Ahead of Inflation Report

U.S. equities remained largely muted on Tuesday after reaching all-time highs as investors awaited the release of a crucial inflation report. The PCE index,...

Domino’s Pizza Beats Quarterly Estimates Amid Rebound in Demand

Domino's Pizza reported its financial results for the fourth quarter on Monday, beating Wall Street expectations. Same-store sales rose 2.8% over the quarter, beating...

U.S. Homeowners Remain In Homes Longer Than They Did 20 Years Ago

A study by real estate brokerage Redfin found that U.S. homeowners are remaining in their existing homes for longer than they did 20 years...