London, United Kingdom – London has been named the second most-visited city in the world for 2023, according to a report by Euromonitor International.
In January, economists polled by Reuters forecasted a 4.2% year-on-year inflation rate, but the actual figure came in at 5.1%. Despite this, the Office for National Statistics noted that the largest upward contribution to the change in inflation came from housing and household services, particularly higher gas and electricity charges. On the other hand, the largest downward contribution came from furniture, household goods, and food and non-alcoholic beverages.
The core Consumer Price Index (CPI) figure, which excludes volatile prices, was below the consensus estimate both annually and monthly. Finance Minister Jeremy Hunt stated that the plan to reduce inflation was showing progress and expected inflation to fall to around 2% in the coming months. However, the CPI for goods only slowed slightly, while the CPI for services continued to rise.
Despite initial concerns, the British economy managed to avoid a recession even with rapid interest rate hikes from the Bank of England. This has led to speculation about a potential technical recession in the fourth quarter. However, experts like Suren Thiru, the economics director at ICAEW, have expressed optimism about the UK’s fight against inflation, citing potential falls in energy and food costs in the near future.
Thiru did note, though, that the Bank of England may be compelled to keep policy tighter for longer if the government announces tax cuts during the Spring Budget statement next month. However, there is still optimism that inflation will decrease significantly by the spring due to the predicted fall in energy bills.
Overall, the UK’s progress in dealing with inflation has been a topic of interest, with experts keeping a close eye on how the country’s economy will continue to fare in the face of inflation and potential policy changes by the Bank of England.