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UK inflation rate falls back to zero - live updates UK inflation rate falls back to zero - live updates
(35 minutes later)
11.49am BST11:49
Here’s a handy colour-coded graph showing how UK inflation has fluctuated since the financial crisis began:
0% inflation in the UK in August. Food, transport and more recently clothing have helped drag it down. pic.twitter.com/X8vejuEekc
11.37am BST11:37
The cost of oil and metals has fallen through the summer, as concerns has grown over China’s economic slowdown.
And for that reason, Ranko Berich of City firm Monex Europe fears UK inflation could fall further, especially if the global economy worsens.
He argues:
“The downside risks to inflation are now mounting, with the latest falls in commodity prices adding more volatility to the global economy. The general consensus at the Bank is that energy prices will at least stabilise, so if crude oil prices take another hit the UK economy could be in for a bumpy ride.
With this report showing no sign of labour market gains filtering through to higher consumer prices, the Bank of England’s extreme caution around rates now seems entirely justified.”
11.25am BST11:25
Inflation (CPI) up 0% Wages up 2.5% Houses up 5.2%. Can you tell how this ends yet?
11.09am BST11:0911.09am BST11:09
This era of no-flation does not extend to Britain’s housing market.This era of no-flation does not extend to Britain’s housing market.
Property prices jumped by 2% in July alone, meaning house price inflation is running at over 5%.Property prices jumped by 2% in July alone, meaning house price inflation is running at over 5%.
Money editor Patrick Collinson explains this morning’s data:Money editor Patrick Collinson explains this morning’s data:
The average house price rose by more than £1,000 a week, leaping from £277,000 to £282,000, a new all-time high and 16.7% above the pre-financial crisis peak in 2007.The average house price rose by more than £1,000 a week, leaping from £277,000 to £282,000, a new all-time high and 16.7% above the pre-financial crisis peak in 2007.
But on a seasonally-adjusted basis, average annual house price inflation dipped to 5.2% from 5.7%, in part due to price falls in Scotland and the north-east of England.But on a seasonally-adjusted basis, average annual house price inflation dipped to 5.2% from 5.7%, in part due to price falls in Scotland and the north-east of England.
Related: UK house prices rise 2% in JulyRelated: UK house prices rise 2% in July
And here’s the picture across Britain’s regions:And here’s the picture across Britain’s regions:
Updated at 11.12am BSTUpdated at 11.12am BST
10.58am BST10:5810.58am BST10:58
The British Chambers of Commerce disagrees with the Institute of Directors, and wants the Bank of England to leave interest rates unchanged.The British Chambers of Commerce disagrees with the Institute of Directors, and wants the Bank of England to leave interest rates unchanged.
Chief economist David Kerr argues that Britain’s economy isn’t robust enough to handle a hike.Chief economist David Kerr argues that Britain’s economy isn’t robust enough to handle a hike.
“Low inflation supports living standards by boosting disposable income and will help to sustain the economic recovery. However, last week’s poor trade and manufacturing figures show that the recovery is still fragile, particularly in the face of major global uncertainties.“Low inflation supports living standards by boosting disposable income and will help to sustain the economic recovery. However, last week’s poor trade and manufacturing figures show that the recovery is still fragile, particularly in the face of major global uncertainties.
“The prospect of continuing low inflation and global uncertainty should give the MPC no need to contemplate a premature increase in interest rates. We urge the MPC to keep rates at their current level until well into 2016.”“The prospect of continuing low inflation and global uncertainty should give the MPC no need to contemplate a premature increase in interest rates. We urge the MPC to keep rates at their current level until well into 2016.”
Updated at 10.59am BSTUpdated at 10.59am BST
10.44am BST10:4410.44am BST10:44
TUC: Zero inflation doesn't deliver higher living standardsTUC: Zero inflation doesn't deliver higher living standards
The TUC’s general secretary, Frances O’Grady, argues powerfully that the Bank of England should not raise interest rates right now.The TUC’s general secretary, Frances O’Grady, argues powerfully that the Bank of England should not raise interest rates right now.
“Zero inflation is not a route to raising living standards. And with future economic prospects so uncertain, early interest rate rises would bring real risks to households.“Zero inflation is not a route to raising living standards. And with future economic prospects so uncertain, early interest rate rises would bring real risks to households.
“The recovery can’t be taken for granted and we need significant investment in skills, innovation and infrastructure to boost productivity and ensure a sustainable economy that works for the many and not just the few.”“The recovery can’t be taken for granted and we need significant investment in skills, innovation and infrastructure to boost productivity and ensure a sustainable economy that works for the many and not just the few.”
10.36am BST10:3610.36am BST10:36
Today’s drop in inflation hasn’t deterred the Institute of Directors from repeating its call for interest rates to rise.Today’s drop in inflation hasn’t deterred the Institute of Directors from repeating its call for interest rates to rise.
Michael Martins, the IoD’s economic analyst, argues that Britain’s economy looks healthy despite the problems in China and the eurozone. And with inflation at zero, households are benefitting from rising real wages and higher spending power.Michael Martins, the IoD’s economic analyst, argues that Britain’s economy looks healthy despite the problems in China and the eurozone. And with inflation at zero, households are benefitting from rising real wages and higher spending power.
Thus, the time to start normalising rates has arrived (even though there’s no immediate need to hike borrowing costs to tame inflation):Thus, the time to start normalising rates has arrived (even though there’s no immediate need to hike borrowing costs to tame inflation):
Given the strength of the UK economy, pickup in output, tightening labour market, and tentative signs of productivity increases, the Bank of England must be prepared to follow the Federal Reserve if it raises rates on Thursday.Given the strength of the UK economy, pickup in output, tightening labour market, and tentative signs of productivity increases, the Bank of England must be prepared to follow the Federal Reserve if it raises rates on Thursday.
I suspect the IoD are ahead of the curve on this one, with most City economists predicting rates will remain low until 2016. But we shall see....I suspect the IoD are ahead of the curve on this one, with most City economists predicting rates will remain low until 2016. But we shall see....
Updated at 10.42am BSTUpdated at 10.42am BST
10.27am BST10:2710.27am BST10:27
The Treasury: Zero inflation is good newsThe Treasury: Zero inflation is good news
The government has welcomed today’s inflation report, even though it shows the Bank of England is failing to hit the 2% target.The government has welcomed today’s inflation report, even though it shows the Bank of England is failing to hit the 2% target.
A Treasury spokeswoman says:A Treasury spokeswoman says:
Today’s inflation figure means a real boost for working people and family budgets across our one nation, with prices essentially frozen compared to last year while wages continue to rise.Today’s inflation figure means a real boost for working people and family budgets across our one nation, with prices essentially frozen compared to last year while wages continue to rise.
This is a reminder that we must continue to work through our long term plan to build a resilient economy – delivering the economic security of a country that lives within its means, financial security of lower taxes and a new National Living Wage, as well as national security of a Britain that defends itself and its values.”This is a reminder that we must continue to work through our long term plan to build a resilient economy – delivering the economic security of a country that lives within its means, financial security of lower taxes and a new National Living Wage, as well as national security of a Britain that defends itself and its values.”
It’s a bit of a leap from cheaper petrol prices to the Security of the Nation. But this is now one of the government’s new attack lines at Labour’s leader, Jeremy Corbyn.It’s a bit of a leap from cheaper petrol prices to the Security of the Nation. But this is now one of the government’s new attack lines at Labour’s leader, Jeremy Corbyn.
10.18am BST10:1810.18am BST10:18
Inflation is expected to remain flattish for the next few months.Inflation is expected to remain flattish for the next few months.
Consumer price inflation will likely continue to hover around zero in September & October but still looks likely to then trend up graduallyConsumer price inflation will likely continue to hover around zero in September & October but still looks likely to then trend up gradually
Not quite back to deflation but inflation at zero and likely to stay close to there for a while.Not quite back to deflation but inflation at zero and likely to stay close to there for a while.
10.07am BST10:0710.07am BST10:07
Analyst: it's no-flation, not deflationAnalyst: it's no-flation, not deflation
This latest drop in inflation is due to “the slump in the oil price, a washed out summer keeping shoppers away from the high street, falling sea fares and the ongoing supermarket price wars”.This latest drop in inflation is due to “the slump in the oil price, a washed out summer keeping shoppers away from the high street, falling sea fares and the ongoing supermarket price wars”.
So says Maike Currie, associate investment director at Fidelity Personal Investing, who isn’t too worried about the deflation threat.So says Maike Currie, associate investment director at Fidelity Personal Investing, who isn’t too worried about the deflation threat.
“It is important to distinguish between disinflation - a slowdown in the rate of inflation; and deflation – a persistent and ongoing fall in prices. The two are not the same thing.“It is important to distinguish between disinflation - a slowdown in the rate of inflation; and deflation – a persistent and ongoing fall in prices. The two are not the same thing.
Both food and fuel - the main drivers of the historically low inflation numbers we are seeing - are two essential items. No-one is going to delay their weekly trip to the supermarket or stop filling up their car’s petrol tank, because they expect prices may fall next month.Both food and fuel - the main drivers of the historically low inflation numbers we are seeing - are two essential items. No-one is going to delay their weekly trip to the supermarket or stop filling up their car’s petrol tank, because they expect prices may fall next month.
Deflation is dangerous because it causes companies and consumers to do the exact thing that causes more deflation – delay spending in the hope of further price falls in the future.”Deflation is dangerous because it causes companies and consumers to do the exact thing that causes more deflation – delay spending in the hope of further price falls in the future.”
10.00am BST10:0010.00am BST10:00
Inflation has now been flat or negative for five out of the past seven months, far from the Bank of England’s 2% inflation target.Inflation has now been flat or negative for five out of the past seven months, far from the Bank of England’s 2% inflation target.
The BBC’s economics editor, Robert Peston, wonders if Britain is entering a protracted period of very weak inflation, or worse....The BBC’s economics editor, Robert Peston, wonders if Britain is entering a protracted period of very weak inflation, or worse....
Since February, inflation has been 0%, 0, -0.1, 0.1, 0, 0.1,0. When is it reasonable to worry that deflation is a genuine threat?Since February, inflation has been 0%, 0, -0.1, 0.1, 0, 0.1,0. When is it reasonable to worry that deflation is a genuine threat?
9.57am BST09:579.57am BST09:57
UK inflation, the key chartUK inflation, the key chart
This chart confirms that cheaper food and transport costs kept inflation pegged at zero over the last year.This chart confirms that cheaper food and transport costs kept inflation pegged at zero over the last year.
9.52am BST09:529.52am BST09:52
Although Britons did benefit from a smaller rise in clothing prices in August, that’s partly because shops offered less generous discounts in the July sales.Although Britons did benefit from a smaller rise in clothing prices in August, that’s partly because shops offered less generous discounts in the July sales.
The ONS says:The ONS says:
Clothing prices, overall, rose by 1.5% between July and August this year compared with a rise of 2.6% between the same 2 months a year ago. Prices of clothing and footwear usually rise between July and August as autumn ranges start to enter the shops following the summer sales season.Clothing prices, overall, rose by 1.5% between July and August this year compared with a rise of 2.6% between the same 2 months a year ago. Prices of clothing and footwear usually rise between July and August as autumn ranges start to enter the shops following the summer sales season.
The smaller rise this year follows a sales period in which prices fell by less than a year ago. The downward contribution came from price movements across a range of garments but particularly from women’s outerwear.The smaller rise this year follows a sales period in which prices fell by less than a year ago. The downward contribution came from price movements across a range of garments but particularly from women’s outerwear.
9.42am BST09:429.42am BST09:42
Food prices across the UK have fallen by 2.8% over the last year, according to today’s inflation report, while motor fuel is 12.9% cheaper.Food prices across the UK have fallen by 2.8% over the last year, according to today’s inflation report, while motor fuel is 12.9% cheaper.
9.39am BST09:399.39am BST09:39
The Bank of England is probably relieved that UK inflation didn’t turn negative for the second time this year.The Bank of England is probably relieved that UK inflation didn’t turn negative for the second time this year.
Did I hear a big sigh of relief by the Old Lady on Threadneedle St? #boe #cpiDid I hear a big sigh of relief by the Old Lady on Threadneedle St? #boe #cpi
UK core inflation in line at 1%. So nothing in inflation to adapt #BoE wait and see stance....UK core inflation in line at 1%. So nothing in inflation to adapt #BoE wait and see stance....
9.38am BST09:389.38am BST09:38
9.37am BST09:379.37am BST09:37
Inflation in the UK was held back by clothing prices, which rose at a slower pace this summer.Inflation in the UK was held back by clothing prices, which rose at a slower pace this summer.
The Office for National Statistics says:The Office for National Statistics says:
9.32am BST09:329.32am BST09:32
UK inflation hits zeroUK inflation hits zero
The UK’s annual inflation rate, the consumer prices index, has fallen back to zero.The UK’s annual inflation rate, the consumer prices index, has fallen back to zero.
That’s down from 0.1% in July.That’s down from 0.1% in July.
The cost of living was pulled down by lower oil prices, the Office for National Statistics reports.The cost of living was pulled down by lower oil prices, the Office for National Statistics reports.
Prices were 0.2% higher in August than in July, but unchanged compared with August 2014.Prices were 0.2% higher in August than in July, but unchanged compared with August 2014.
And the core inflation rate, which strips out volatile factors such as energy and food prices, has dropped to 1% from 1.2%.And the core inflation rate, which strips out volatile factors such as energy and food prices, has dropped to 1% from 1.2%.
More details and reaction to followMore details and reaction to follow
Updated at 9.35am BSTUpdated at 9.35am BST
9.29am BST09:299.29am BST09:29
Europe’s stock markets are following China’s lead lower.Europe’s stock markets are following China’s lead lower.
After a solid start, the FTSE 100 has now shed 52 points or almost 1%. Commodity firm Glencore is the biggest faller, down 6.3%, tracking a drop in metals prices.After a solid start, the FTSE 100 has now shed 52 points or almost 1%. Commodity firm Glencore is the biggest faller, down 6.3%, tracking a drop in metals prices.
#FTSE really tanking now as metals prices fall. TM pic.twitter.com/J1z56VMhoG#FTSE really tanking now as metals prices fall. TM pic.twitter.com/J1z56VMhoG
More on this after the UK inflation data.....More on this after the UK inflation data.....
9.24am BST09:249.24am BST09:24
It’s nearly time for the main economic data of the morning, the UK inflation figures for August.It’s nearly time for the main economic data of the morning, the UK inflation figures for August.
Analysts, economists and investors are all watching closely, to see how the consumer prices index changed last month.Analysts, economists and investors are all watching closely, to see how the consumer prices index changed last month.
Tony Cross of Trustnet explains:Tony Cross of Trustnet explains:
These numbers have the ability to influence interest rate decisions – expect the Bank of England to be looking at the core rate excluding food and fuel pricesThese numbers have the ability to influence interest rate decisions – expect the Bank of England to be looking at the core rate excluding food and fuel prices
9.17am BST09:179.17am BST09:17
Today’s selloff suggests Chinese investors aren’t confident that Beijing can successfully stimulate its economy, and pump up the stock market boom again.Today’s selloff suggests Chinese investors aren’t confident that Beijing can successfully stimulate its economy, and pump up the stock market boom again.
IG’s market strategist Bernard Aw says:IG’s market strategist Bernard Aw says:
“Normally, expectations of more growth boosting action would lead to demand for smaller and speculative stock, like the ChiNext or Shenzhen Composite Index, but today, market participants were probably not convinced that there will be a big plan in the pipeline.”“Normally, expectations of more growth boosting action would lead to demand for smaller and speculative stock, like the ChiNext or Shenzhen Composite Index, but today, market participants were probably not convinced that there will be a big plan in the pipeline.”
9.02am BST09:029.02am BST09:02
Chinese authorities may be relieved that the Shanghai stock market didn’t finish the day below the 3,000 point mark today.Chinese authorities may be relieved that the Shanghai stock market didn’t finish the day below the 3,000 point mark today.
At one stage, the Shanghai Composite hit 2,984 before struggling back. Perhaps with some assistance?...At one stage, the Shanghai Composite hit 2,984 before struggling back. Perhaps with some assistance?...
China shares fell again today with the Shanghai Composite falling 3.5% to 3004. The Plunge Protection Team held 3000 just!China shares fell again today with the Shanghai Composite falling 3.5% to 3004. The Plunge Protection Team held 3000 just!
Shanghai Comp. falls below 3,000; -4%; 14 stocks fall for every 1 that's upShanghai Comp. falls below 3,000; -4%; 14 stocks fall for every 1 that's up
Updated at 9.05am BSTUpdated at 9.05am BST
8.41am BST08:418.41am BST08:41
Shanghai stock market tumbles 3.5%Shanghai stock market tumbles 3.5%
Back in China, the stock market has posted its biggest two-day fall in three weeks.Back in China, the stock market has posted its biggest two-day fall in three weeks.
The Shanghai Composite Index closed for the day down 3.5% at 3004 points, meaning it has now lost 7% of its value this year.The Shanghai Composite Index closed for the day down 3.5% at 3004 points, meaning it has now lost 7% of its value this year.
Commodity producers and technology companies led today’s selloff, which takes the index back towards the eight-month low reached last month.Commodity producers and technology companies led today’s selloff, which takes the index back towards the eight-month low reached last month.
Economists are concerned that the Chinese economy is weakening rather faster than the official data, which shows growth of around 7% this year .Economists are concerned that the Chinese economy is weakening rather faster than the official data, which shows growth of around 7% this year .
Energy consultancy Wood Mackenzie says its research suggests the Chinese economy grew at an annual rate of 5.3% in the second quarter of 2015, and just 4.5% in Q3.Energy consultancy Wood Mackenzie says its research suggests the Chinese economy grew at an annual rate of 5.3% in the second quarter of 2015, and just 4.5% in Q3.
There is also concern that recent interventions by Bejing have not revitalised the markets.There is also concern that recent interventions by Bejing have not revitalised the markets.
As Zhang Haidong, chief strategist at Jinkuang Investment Management, put it:As Zhang Haidong, chief strategist at Jinkuang Investment Management, put it:
“The economy has not shown signs of a pick up after a series of cuts in interest rates and reserve requirements, while expectations about yuan depreciation are still there.”“The economy has not shown signs of a pick up after a series of cuts in interest rates and reserve requirements, while expectations about yuan depreciation are still there.”
8.37am BST08:378.37am BST08:37
BMW has now told reporters that CEO Harald Krüger has seen a doctor and is recovering well.BMW has now told reporters that CEO Harald Krüger has seen a doctor and is recovering well.
The company added that this morning’s moment of dizziness follows a recent trip abroad.The company added that this morning’s moment of dizziness follows a recent trip abroad.
Updated at 8.49am BSTUpdated at 8.49am BST
8.16am BST08:168.16am BST08:16
Here’s Bloomberg’s early take on events in Frankfurt:Here’s Bloomberg’s early take on events in Frankfurt:
BMW AG suspended a press conference at the Frankfurt International Motor Show after Chief Executive Officer Harald Krüger collapsed on stage.BMW AG suspended a press conference at the Frankfurt International Motor Show after Chief Executive Officer Harald Krüger collapsed on stage.
The CEO, 49, was escorted offstage by two assistants after the incident. The event was Krüger’s first appearance at the Frankfurt show as BMW’s chief. He took the top post at the Munich-based carmaker in May.The CEO, 49, was escorted offstage by two assistants after the incident. The event was Krüger’s first appearance at the Frankfurt show as BMW’s chief. He took the top post at the Munich-based carmaker in May.
DEVELOPING: BMW suspends news conference at Frankfurt Motor Show after CEO Harald Krueger collapses http://t.co/pOIYeJbaRX #IAA2015DEVELOPING: BMW suspends news conference at Frankfurt Motor Show after CEO Harald Krueger collapses http://t.co/pOIYeJbaRX #IAA2015
Updated at 8.50am BSTUpdated at 8.50am BST
8.09am BST08:098.09am BST08:09
BMW boss collapses at Frankfurt Motor SHowBMW boss collapses at Frankfurt Motor SHow
There’s drama over in Frankfurt, where the CEO of German carmaker BMW has just appeared to faint during a presentation at the Motor Show.There’s drama over in Frankfurt, where the CEO of German carmaker BMW has just appeared to faint during a presentation at the Motor Show.
A planned press conference was cancelled after Harald Krüger fell to the ground during a presentation on stage. He did then walk away after being helped to his feet, so hopefully he’s OK.A planned press conference was cancelled after Harald Krüger fell to the ground during a presentation on stage. He did then walk away after being helped to his feet, so hopefully he’s OK.
Reuters has the story:Reuters has the story:
German luxury carmaker BMW’s new chief executive, Harald Krüger, fainted on stage at the Frankfurt auto show on Tuesday, a Reuters witness reported.German luxury carmaker BMW’s new chief executive, Harald Krüger, fainted on stage at the Frankfurt auto show on Tuesday, a Reuters witness reported.
Krueger collapsed as he was commenting on BMW’s latest models during a news conference. Two men escorted him off stage. Kruger was able to walk.Krueger collapsed as he was commenting on BMW’s latest models during a news conference. Two men escorted him off stage. Kruger was able to walk.
A BMW spokesman said over the public address system: “I’m a bit lost for words. BMW will try to redo the press conference at a later stage.”A BMW spokesman said over the public address system: “I’m a bit lost for words. BMW will try to redo the press conference at a later stage.”
Automotive journalist Jonathan Brownfield is there, and confirm that the press conference is off:Automotive journalist Jonathan Brownfield is there, and confirm that the press conference is off:
First stop was #BMW. Unfortunately, the CEO fell during the first part of the conference, so the rest was canceled. #IAA2015First stop was #BMW. Unfortunately, the CEO fell during the first part of the conference, so the rest was canceled. #IAA2015
Updated at 8.50am BSTUpdated at 8.50am BST
7.55am BST07:557.55am BST07:55
Quiet session in the US last night, dull markets ahead of the Fed on Thursday means FTSE forecast to start broadly unchanged at 6085Quiet session in the US last night, dull markets ahead of the Fed on Thursday means FTSE forecast to start broadly unchanged at 6085
7.55am BST07:557.55am BST07:55
The recent drop in the oil price probably helped to keep the cost of living pegged in August.The recent drop in the oil price probably helped to keep the cost of living pegged in August.
My colleague Katie Allen explains:My colleague Katie Allen explains:
The headline inflation rate is forecast to edge down to zero for August from 0.1% in July, according to the consensus in a Reuters poll of economists. Some even see inflation on the consumer prices index (CPI) measure turning negative again after a sharp fall in crude oil prices and a supermarket price war cut the cost of petrol and diesel.The headline inflation rate is forecast to edge down to zero for August from 0.1% in July, according to the consensus in a Reuters poll of economists. Some even see inflation on the consumer prices index (CPI) measure turning negative again after a sharp fall in crude oil prices and a supermarket price war cut the cost of petrol and diesel.
“Our forecast for August is that the headline measure of CPI inflation fell back to 0.0%, but there is a significant risk that it heads back into negative territory,” said Philip Shaw, economist at Investec.“Our forecast for August is that the headline measure of CPI inflation fell back to 0.0%, but there is a significant risk that it heads back into negative territory,” said Philip Shaw, economist at Investec.
Here’s Katie’s preview of the data, due at 9.30am BST:Here’s Katie’s preview of the data, due at 9.30am BST:
Related: UK inflation could fall back to 0%Related: UK inflation could fall back to 0%
7.42am BST07:427.42am BST07:42
BAML also found that few investors expect the Federal Reserve to announce an interest rate hike this week.BAML also found that few investors expect the Federal Reserve to announce an interest rate hike this week.
A majority expect the Fed to act before the end of the year, though.A majority expect the Fed to act before the end of the year, though.
Rate hike expectations have shifted to 4Q (BAML FMS) pic.twitter.com/XqFdgUfWW6Rate hike expectations have shifted to 4Q (BAML FMS) pic.twitter.com/XqFdgUfWW6
7.41am BST07:417.41am BST07:41
Chinese recession is top 'tail risk'Chinese recession is top 'tail risk'
City investors are increasingly concerned about the possibility that China’s economy falls into recession, according to the latest survey by Bank of America Merrill Lynch.City investors are increasingly concerned about the possibility that China’s economy falls into recession, according to the latest survey by Bank of America Merrill Lynch.
They’ve stopped fretting about the eurozone, though.They’ve stopped fretting about the eurozone, though.
China recession and EM debt crisis viewed as the biggest tail risks (per BAML) pic.twitter.com/ziTAVf9B7WChina recession and EM debt crisis viewed as the biggest tail risks (per BAML) pic.twitter.com/ziTAVf9B7W
7.32am BST07:327.32am BST07:32
China’s stock market is on track for its worst two days since the drama of late August.China’s stock market is on track for its worst two days since the drama of late August.
Another wave of selling has swept through the country’s trading floors today, as investors fret about recent disappointing economic data.Another wave of selling has swept through the country’s trading floors today, as investors fret about recent disappointing economic data.
This has send the Shanghai composite index down by over 3% in late trading, adding to yesterday’s 2.7% decline. There’s still around 30 minutes left, though, so we could see the authorities intervene to prop up shares.This has send the Shanghai composite index down by over 3% in late trading, adding to yesterday’s 2.7% decline. There’s still around 30 minutes left, though, so we could see the authorities intervene to prop up shares.
Shanghai is having another tough session. It's the biggest 2 day drop in 3 weeks. pic.twitter.com/kHNnCe5GjfShanghai is having another tough session. It's the biggest 2 day drop in 3 weeks. pic.twitter.com/kHNnCe5Gjf
Updated at 7.35am BSTUpdated at 7.35am BST
7.23am BST07:237.23am BST07:23
Introduction: UK inflation likely to be weakIntroduction: UK inflation likely to be weak
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Inflation is one of the issues of the moment, as central bankers in Britain and America ponder whether it’s safe to end the long period of cheap money and start raising interest rates.Inflation is one of the issues of the moment, as central bankers in Britain and America ponder whether it’s safe to end the long period of cheap money and start raising interest rates.
And we get a new healthcheck on the UK situation today, when the latest consumer prices index (CPI) is released.And we get a new healthcheck on the UK situation today, when the latest consumer prices index (CPI) is released.
Economists reckon that inflation could fall back to zero, from just +0.1% in July. It could even be negative.Economists reckon that inflation could fall back to zero, from just +0.1% in July. It could even be negative.
Latest UK inflation figs out at 09:30 and we might be back in deflation territory. The gap between wages and prices still widening. HurrahLatest UK inflation figs out at 09:30 and we might be back in deflation territory. The gap between wages and prices still widening. Hurrah
Michael Hewson of CMC Markets predicts that today’s inflation report will give little support to those who favour hiking borrowing costs soon:Michael Hewson of CMC Markets predicts that today’s inflation report will give little support to those who favour hiking borrowing costs soon:
August inflation is set to remain weak with annual CPI set to fall back to 0% from 0.1% in July. Even more importantly core CPI inflation is also expected to fall furtherfrom 1.2% in July to 1%.August inflation is set to remain weak with annual CPI set to fall back to 0% from 0.1% in July. Even more importantly core CPI inflation is also expected to fall furtherfrom 1.2% in July to 1%.
Retail prices (RPI) are also set to decline further as well, below the 1% level to 0.9% as lower fuel and clothing prices weigh on prices.Retail prices (RPI) are also set to decline further as well, below the 1% level to 0.9% as lower fuel and clothing prices weigh on prices.
Good news for UK consumers, if so.Good news for UK consumers, if so.
Here’s today’s economic calendar:Here’s today’s economic calendar:
Spread-betters are predicting a subdued start to trading in London:Spread-betters are predicting a subdued start to trading in London:
Our European opening calls: $FTSE 6100 up 16 $DAX 10166 up 34 $CAC 4540 up 22 $IBEX 9725 up 29 $MIB 21607 up 53Our European opening calls: $FTSE 6100 up 16 $DAX 10166 up 34 $CAC 4540 up 22 $IBEX 9725 up 29 $MIB 21607 up 53
Companies reporting results this morning include online supermarket Ocado, and the DIY chain Kingfisher.Companies reporting results this morning include online supermarket Ocado, and the DIY chain Kingfisher.
And we’ll be keeping one eye on Greece, ahead of Sunday’s general election, and other events through the day....And we’ll be keeping one eye on Greece, ahead of Sunday’s general election, and other events through the day....
Updated at 7.25am BSTUpdated at 7.25am BST