UK inflation rises to 0.7% in January, lifted by furniture and food – business live

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Rolling coverage of the latest economic and financial news

7.19am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

We start with inflation, which has risen again in the UK.

Inflation – how quickly prices are rising – is sneaking up. Not that high right now, but one to watch this year.

Now at 0.7% (the @ons‘s CPI figure)

Furniture, household goods, food, transport costs pushing prices higher.

I’ve had a few messages about prices at the pumps…

The cost of goods in the shops — those that are open, anyway — rose 0.7% in January on the year before. @ONS says food prices went up and there was less discounting on items such as bedding and settees. But widespread January sales saw price cuts for clothing and footwear.

The rise in bond yields continues again today. The US 10-year Treasury yield is up 8 basis points to 1.29%. pic.twitter.com/EizUA7w1f1

U.S. 10-YEAR TREASURY YIELD RISES TO 1.3% FOR THE FIRST TIME IN NEARLY ONE YEAR pic.twitter.com/C3cqyq5Jwo

Combined with sharp rises in energy and commodity prices there is rising concern that higher prices will not only choke off any post pandemic recovery, due to higher borrowing costs, but they could also crimp future consumer spending due to higher living costs.

This caution appears to be manifesting itself into this morning’s European open, which looks set to be a mixed one, with Asia markets also trading in a similar fashion.

Continue reading…

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