All articles tagged with #uk economy
UK inflation remained at 3% in February, with cheaper fuel offset by higher clothing costs; the Iran-Israel war has pushed oil prices higher, complicating any expected further falls in inflation and shaping expectations for BoE policy moves.
The National Farmers’ Union warns UK food prices are likely to rise over the coming weeks to months as the Iran conflict drives up fuel, fertiliser and energy costs. Glasshouse crops such as tomatoes and cucumbers are most immediately affected, with broader farming costs potentially passed on to shoppers. Ministers will discuss the impact at Cobra next week as the cost of living and inflation remain on the agenda.
Britain’s inflation basket has been refreshed, adding items such as alcohol-free beer, houmous, motorhomes, dashcams and pet grooming while removing others; 27 additions and 19 removals bring the total to 760 items. The ONS will rely more on supermarket scanner data for prices, reflecting shifts in healthier lifestyles and technology. The latest CPI was 3% in January, with a 2% target; forecasters now expect inflation closer to 3% amid geopolitical fallout.
UK GDP was unchanged in January, short of forecasts for 0.2% growth, with services flat, production down 0.1% and construction up 0.2%. After a tepid Q4 and weak December, the energy-price surge linked to the U.S.–Iran conflict adds inflation risk and reduces expectations for a Bank of England rate cut.
ONS data show about 957,000 UK 16–24-year-olds were not in education, employment or training in Oct–Dec 2025 (12.8%), edging toward a million as the jobs market remains weak. More young women are out of work, and rising inactivity is linked to long-term sickness and neurodivergence. The government is expanding apprenticeships and paid placements, while an independent inquiry into rising youth unemployment is due this summer.
A CBI–Energy UK report warns that surging energy costs—electricity up about 70% and gas around 60% higher since Russia’s invasion—plus rising bills for almost 90% of firms, have led about 40% to cut investment, risking deindustrialisation and a wider trade deficit. It calls for a comprehensive reform of the energy market and stronger grid investment, with a government response that includes more targeted relief for heavy users, while broader reforms are pursued through a joint taskforce.
Britain's inflation rate dropped to 3% in January from 3.4%, led by cheaper petrol, food and airfares, though prices are still rising rather than falling. The cooler pace increases the likelihood of a Bank of England rate cut at its March meeting, with energy-bill support expected to ease price pressures further in the coming months. Economists forecast further declines ahead, though policy decisions and wage dynamics could influence how quickly inflation falls toward the 2% target.
UK youth face a tougher job market with 16.1% of 16–24-year-olds unable to find work amid a 5.1% national unemployment rate; higher business costs and AI-driven hiring changes are shrinking entry-level roles, while graduates report fierce competition for limited opportunities, fueling calls for targeted support schemes.
Official data show the UK unemployment rate rising to 5.2% in December, the highest since early 2021, with redundancies increasing and the number of unemployed per vacancy at a post-pandemic high. Wage growth remains uneven—faster in the public sector and softer in the private sector—and the ONS cautions about interpreting monthly vacancy data. A CIPD survey links hiring cuts to new workers’ rights and higher employer National Insurance costs, while markets price in potential Bank of England rate cuts later this year.
British PM Keir Starmer travels to Beijing for the first UK leader visit since 2018, aiming to unlock growth with a cautious set of deals while avoiding a rift with the U.S. and Donald Trump. Expect low‑risk agreements in health, climate science, financial services, and visas, plus chatter on whisky tariffs, with big energy or EV collaborations likely off the table, reflecting a three‑way balancing act among Washington, Brussels and Beijing amid security and human rights sensitivities.
Warhammer’s parent company, Games Workshop, has transformed from a mail-order hobby outfit started by three friends into a £6bn FTSE 100 business, posting 10.9% revenue growth as demand for its plastic miniatures soars. The brand leverages a loyal community, a vertically integrated supply chain, and a focus on experiential retail and IP, boosted by celebrity fans and broader pop‑culture trends. Plans for global expansion, including a Warhammer World in the US and potential film/TV projects, aim to convert niche tabletop gaming into a mainstream entertainment powerhouse.
UK GDP rose 0.3% in November, beating Reuters’ 0.1% forecast, with services up 0.3% and production up 1.1% while construction fell 1.3%; October’s 0.1% drop was linked to Jaguar Land Rover disruptions. Analysts expect a stronger 2026 rebound as the Bank of England continues its rate-cutting path.
The FTSE 100 index surpassed 10,000 points for the first time, marking a significant milestone in 2025 driven by strong performances from UK and international companies, boosted by global economic factors and investor confidence, despite some sector-specific setbacks.
The over-50s demographic in the UK, known as 'Silver Spenders,' is gaining significant financial influence due to increased wealth and discretionary spending, driving growth in sectors like luxury goods, wealth management, insurance, healthcare, and pet care, with notable interest in companies like Hiscox, Evelyn Partners, Saga, and Pets At Home.
Boxing Day sales in the UK have been subdued, with foot traffic and spending falling compared to previous years, as consumers remain cost-conscious amid economic pressures and a shift towards online shopping, leading to less significance for the traditional sales event.