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British airlines told to move to Europe after leaving the UK or lose the main routes

Exclusive: fears for British jobs as EU officials say that the airlines will need to move the base and the majority of the shareholders, to fly routes in Europe

UK-based airlines told to move to Europe after Brexit or lose major routes

EU leaders have warned airlines, including easyjet and Ryanair that they will have to move their headquarters or sell shares of European citizens, if they want to continue to fly routes in Continental Europe after the British exit from the EU. Continue reading “British airlines told to move to Europe after leaving the UK or lose the main routes”

Rising prices for food and fuel, inflation in the UK rise to 2.3%

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Inflation

Rising prices for food and fuel, inflation in the UK rise to 2.3%

The standard of living fears to build as wage growth slowed and inflation soared from 1.8% in January to its highest level since Sep 2013

Rising food and fuel prices hoist UK inflation rate to 2.3%

Inflation

Rising prices for food and fuel, inflation in the UK rise to 2.3%

The standard of living fears to build as wage growth slowed and inflation soared from 1.8% in January to its highest level since Sep 2013

Rising prices for food and fuel pushed the UK inflation amounted to 2.3% last month, the highest level in more than three years.

Inflation was significantly higher by 2.1% expected in the Reuters poll of economists like grocery bills began to rise after a year of cheaper food.

Greater-than-expected growth will increase concerns about the quality of life of people replacing this year above the subsistence level. While inflation is rising, wage growth is slowing down, leaving households worse.

The TUC said that working people face a double blow rising prices and slowing wage growth. “If the government doesn’t Wake up, we risk sleepwalking into another crisis of life,” said the Secretary General of the trade Union Congress Frances O’grady.

“We urgently need more investment in skills and infrastructure to build a strong Foundation for better-paying jobs. And it’s time to abandon the pay restrictions hitting hard-working teachers, nurses and other public servants”.

The jump from 1.8% inflation in January to 2.3% in February, inflation is above the target level the Bank of England’s 2% and immediately raised the bar of expectations in financial markets that the Bank may raise interest rates sooner than previously thought to keep the rising prices under control.

The pound strengthened against the dollar reached three-week high of $1.2462 after data released on inflation.

Investors said a significant place in the so-called core inflation, which excludes volatile prices like food and fuel. This measure jumped by 2% in February from 1.6% in January and were considerably above forecasts of 1.8%.

Office for national statistics said the main upward effect on inflation came from motor fuels, and prices rose in January and February by 1.2%, reflecting the recent rise in world oil prices and the weakening of the pound since June of last year’s referendum. The weak pound makes imports to the UK, including oil, more expensive.

Currency impact on inflation, combined with rising world oil prices, brought bitter disappointment for UK consumers, who have had almost zero inflation for the entire year of 2015 and first half 2016. A number of companies, including food companies and tech giant Apple, has announced an increase in prices due to the weak pound, which fell to a thirty year low after the vote, quarter and month.

Reflecting these movements, the ONS said another factor stronger inflation in February – the highest level since September 2013, was more expensive, laptops and tablets. They have grown in January-February by 2.3%, a decrease of 5.1% a year ago.

Prices for food products increased in annual terms for the first time in more than two and a half years with a wide range of products contributes to the pickups. There was particularly high growth in the prices of some vegetables, in accordance with reports of poor growing conditions in southern Europe, according to the national statistics service. For example, the price of lettuce “iceberg” increased in January-February at 67.2%.

The Finance Ministry said that the government understands the financial pressure on households.

“The government appreciates that families are interested about the cost of living, and so we cut taxes for millions of workers, increasing the national living wage of £7.50 per hour, starting next month, and the freezing point for the seventh consecutive year,” said the spokesman.

Economists expect inflation will continue to rise in coming months as the impact of the weak pound and rising oil prices continue to be felt. Some see the rise in inflation to 3% in the summer.

The monetary policy Committee (MPC), under Governor mark Carney, said that he is happy, let it grow a little above inflation goal, as it balances the need to support growth and create jobs to keep the rising prices under control. But the minutes of its meeting last week, proposed the partition is formed how much inflation should be tolerated before taking again borrowing costs higher from their current record low level of 0.25%.

Callum Pickering, an economist at the Bank Berenberg, the MPC tolerance for inflation can be checked in the near future.

“In our baseline scenario, we are looking at 25 basis points for the first rate hike in the second quarter of 2018, with a 30% chance the Bank of England raises Bank rate earlier. After today’s data release, the risks to this call are skewed towards Bo Hiking sooner rather than later,” he said.

But James Smith, economist at ING Bank, said that the pressure on real incomes and the likely slowdown in consumer spending will restrain the Bank from raising interest rates.

“Although the surge in inflation may raise a few eyebrows on MDK, that’s what this means for the consumer that really matters,” said he.

“We suspect that growing fears about inflation will gradually outweighed by the backdrop of slower growth. We do not expect a rate change Until the end of 2018.”

The ONS also published data on public Finance on Tuesday, showing Chancellor Philip Hammond remained on track to reduce the deficit in this fiscal year.

Strong tax revenue has helped to reduce the unemployment rate to £1.8 billion in February 2017 fell by £2.8 billion in February 2016. It was the lowest since February on loans since 2007. With one month left loans for the financial year amounted to $ 47.8 billion in Fiscal watchdog, the Office for budget responsibility forecasts the deficit of£51.7 billion for the full fiscal year compared to the previous year by $ 72bn.

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