Tag: National Statistics

Martin Lewis offers ray of light to mortgage holders once inflation declines

Inflation dropping less than anticipated will relieve pressure on mortgage holders, according to financial analyst Martin Lewis.

This morning, the Office for National Statistics verified that in the year ending in June, the inflation rate dropped to 7.9%.

In comparison to May’s 8.7%, this represents a larger decline than anticipated. Most experts had anticipated a result of 8.2% for this month.

Crude core inflation, which increased mortgage rates, was 7.1% and was predicted to remain there, according to Mr. Lewis. It now stands at 6.9%.

‘This takes a little pressure off the Bank of England and hopefully the money markers, there’s a chance (no promises) new mortgage fix rates may ease off a touch.’

The new rate is the lowest reading since March 2022, indicating price rises may finally begin to be slowing down.

But everyday spending will not see much relief.

Speaking on Good Morning Britain, Mr Lewis said: ‘For the first time in a long time we are seeing better than expected inflation figures.

Martin Lewis gave mortgage holders some hope on Good Morning Britain (Picture: Ken McKay/ITV/Shutterstock)

‘In terms of the amount in your pocket it isn’t going to be make that much difference.

‘But some of the pressure will be relieved from borrowers.’

ONS chief economist Grant Fitzner said after the announcement: ‘Inflation slowed substantially to its lowest annual rate since March 2022, driven by price drops for motor fuels.

‘Meanwhile, core inflation also fell back after hitting a 30-year high in May. Food price inflation eased slightly this month, although it remains at very high levels.

‘Although costs facing manufacturers remain elevated, especially for construction materials and food items, the pace of growth has fallen across the last year, with the overall cost of raw materials falling for the first time since late 2020.’

But experts have warned the nation is ‘far from being out of the woods’ amid the cost of living crisis.

Adam Bullock, UK director at TopCashback warned that for millions of people, the cost of living is ‘still a crisis’.

‘Inflation may have dropped but with a year-on-year increase of 7.9%, we are far from being out of the woods,’ he added.

‘The dipped average figure, while better than a rise, must not mask the soaring prices we are still seeing every day.

‘Recent ONS figures revealed food and soft drink costs were up 18.4% year-on-year, while the price of flights soared by 20% and the cost of things like live music tickets, toys and package holidays have climbed by nearly 7% year-on-year.

‘These hikes will be a big blow for families in the coming months.’

July 19, 2023
The top 5 causes of death in England and Wales no longer include COVID

According to new statistics, the coronavirus is no longer among the top five killers in England and Wales.

Following the outbreak of the global pandemic that first put the UK on lockdown in March 2020, COVID-19 was the main cause of death in both 2020 and 2021.

According to the Office for National Statistics (ONS), five additional diseases surpassed the virus in 2022, with dementia and Alzheimer’s disease leading the list and accounting for close to 66,000 deaths, or 11% of all deaths, according to the ONS.

As a result of new versions, the expected number of weekly infections for Covid-19 rose to 4.4 million at the end of last March, setting new records for infection levels in 2022.

But this increase in infections did not result in an increase in deaths caused by the virus, most likely thanks to the success of the vaccination roll-out.

Sarah Caul, head of mortality analysis at the ONS, said the figures represent a ‘significant change’ in England and Wales’ leading causes of death.

In both 2020 and 2021 Covid-19 was the leading cause of death, with 73,766 deaths (12.1% of the total) and 67,350 (11.5%) respectively.

By 2022 coronavirus was recorded as the main cause of death for 22,454 people, or 3.9% of all deaths registered.

After dementia and Alzheimer’s disease the other leading causes of death in England and Wales last year were ischaemic heart diseases (59,356 deaths and 10.3% of the total); chronic lower respiratory diseases (29,815 deaths, 5.2%); cerebrovascular diseases such as strokes and aneurysms (29,274 deaths, 5.1%); and trachea, bronchus and lung cancer (28,571 deaths, 5.0%).

Vaccinations against Covid-19 were first rolled out to key workers and the clinically vulnerable in early 2021, with booster jabs introduced during the winter months.

The total number of deaths registered in England and Wales last year was lower than in 2021 and 2020 – but still 6.2% above the five-year average.

The ONS says 33,747 deaths in 2022 were considered to be ‘excess’ deaths, but they believe Covid-19 only played a minor role in last year’s figures.

Instead they believe seasonal viruses like flue, the impact of the summer heatwave, pressures on the NHS, and access to medical services, would have contributed to last year’s excess deaths.

April 12, 2023
Shares jump as US inflation cools

Share prices have soared as a result of investors’ enthusiasm for official data that indicates the US cost of living increased last month at a slower rate than anticipated.

As traders responded to the data, shares climbed in the US and Asia. On Friday morning, stock markets in the UK and Europe also increased.

According to the Labor Department, the US consumer price index increased 7.7% in October compared to the same month last year.

Since the beginning of the year, that is the smallest annual increase.

The figure, which is down from 8.2 per cent the previous month, means the US central bank may ease its aggressive approach to raising interest rates to tackle inflation.

On Friday Hong Kong’s Hang Seng index jumped by 7.7 per cent, while the Nikkei in Japan ended the day three per cent higher and South Korea’s Kospi gained 3.4 per cent.

The Hang Seng was also boosted after Chinese state media reported that COVID-19 travel measures will be eased.

That came after the benchmark S&P 500 index in New York rose by more than 5.5 per cent, while the Dow Jones Industrial Average gained 3.7 per cent. At the same time the technology-heavy Nasdaq soared by 7.35 per cent.

Shares in US technology companies saw some of the strongest gains with Amazon up by over 12 per cent, while Apple and Microsoft rose more than eight per cent.

European share prices edged higher on Friday too, although they didn’t match the large gains seen in the US and Asia.

In London, the FTSE 100 index was up by 0.4 per cent in early trading after official figures showed the UK appears to be heading into recession.

The economy contracted by 0.2 per cent between July and September, according to the Office for National Statistics.

Meanwhile the US dollar, which has jumped in value this year, weakened against major currencies including the pound and the yen.

Earlier this month the US Federal Reserve raised its key interest rate to a fresh 14-year high.

The move took the central bank’s benchmark lending rate to 3.75 per cent-4 per cent, the highest since January 2008.

Also this month, the Bank of England lifted interest rates to three per cent from 2.25 per cent, the biggest jump since 1989, and warned that the UK is facing its longest recession since records began.

A recession is defined as when a country’s economy shrinks for two three-month periods – or quarters – in a row.

Higher interest rates make it less likely that people will spend on big ticket items, such as homes, cars or expanding their businesses. That fall in demand is, in turn, expected to curb price increases.

Food and energy prices have jumped, in part because of the Ukraine war, which has left many households around the world facing hardship and started to drag on the global economy.

But some economists are concerned that higher rates could also trigger slowdown in the global economy.

Source: bbc.com

November 14, 2022