MaltaToday previous editions

MW 14 June 2017

Issue link:

Contents of this Issue


Page 10 of 23

maltatoday, WEDNESDAY, 14 JUNE 2017 11 Business Today Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way UK infl ation rises to four-year high of 2.9% Reeling from a largely incon- clusive general election, UK infl ation rose to a four-year high yesterday. The rising cost of foreign package holidays and imported computer games helped to push the UK inflation rate up to 2.9% from 2.7% in April. The rising inflation and falling pound explain why the Conservative Party is so keen to avoid a previously mooted second general election in 2017. Prime Minister Theresa May's plan to increase her majority and her personal mandate heading into Brexit talks backfired spectacularly last week when the party failed to win a majority at all, finishing the vote with 318 seats — eight short of a majority. The latest inflation rate is the highest since June 2013, and above the Bank of England's 2% target. The Office for National Statistics said food and clothing also went up in price slightly but the cost of petrol and diesel fell for a third month in a row. The pick-up in inflation is likely to continue the squeeze on consumers. Prices are currently rising faster than increases in salaries, with the most recent ONS data on wages showing that average weekly earnings excluding bonuses increased by 2.1% in the three months to March. Earnings data for the three months to April will be released today. Inflation has been steadily increasing since the EU referendum result a year ago, which triggered a sharp drop in the value of the pound and pushed up the cost of goods imported from abroad. Inflation was 0.3% in May 2016, a month before the Brexit vote. Higher oil prices have also added to the upward pressure on inflation. But in the latest official figures, there was evidence that sterling was a key factor. Statisticians highlighted the rising prices of package holidays, reflecting the growing cost of travelling abroad for Britons because of the weaker pound. On Monday, a survey by credit card firm Visa said household spending dropped for the first time in four years last month. The TUC general secretary, Frances O'Grady, said the inflation figures underlined the pressure on the new government to help households cope with rising living costs. "The election showed that working people are struggling. And the biggest price rises in four years won't provide any comfort," she said. "Working people are still £20 a week worse off, on average, than they were before the crash, and now rising prices are hammering their pay packets again. The new government must stop the real wage slide. Ministers must focus on delivering better-paid jobs all around the UK." Analysts at Royal Bank of Canada have said that last week's election shock has changed the Brexit landscape. But they're not sure that Britain can maintain in the Single Market: "Calls for a so-called 'soft' Brexit need to be weighed against the reality that both Labour and the Conservatives had manifesto commitments to take the UK out of the Single Market," the analysts at Royal Bank of Canada said. "In any case, it looks as though the existence of a minority government with less authority in the House of Commons is set to fuel expectations that the UK's Brexit strategy could be modified in some way." During the five-week campaign, May repeatedly said that "no deal was better than a bad deal" but there are signs that this position is softening. Theresa May (centre) called an early election to seek a stronger mandate for negotiating Brexit Following the application for the admission to Pros- pects of the issue of €1,000,000 ANCHOVY. Stu- dios plc 5.5% unsecured bonds 2027 the company announced that the bond issue was fully subscribed. The board of directors thanked all investors for their confi dence in the company as well as all the partners involved in making this fi rst bond issue a success. ANCHOVY. Studios PLC €1m bond fully subscribed ANCHOVY's founders Zak and Benji Borg

Articles in this issue

Archives of this issue

view archives of MaltaToday previous editions - MW 14 June 2017