TEAM plc: Inflation Shocker

A hot UK inflation print this morning has jolted markets, triggering a swift repricing of the odds of an interest rate hike at tomorrow’s Monetary Policy Committee (MPC) meeting.

The Consumer Prices Index (CPI) unexpectedly accelerated to 10.4% YoY in February from 10.1% YoY the previous month, surpassing all economists’ forecasts who had projected a return to single digits.

  • Food and non-alcoholic drink prices soared at 18% YoY, the fastest pace since 1977.
  • Clothing and footwear rose 8.1% YoY.

Of greater concern for policymakers will be the breadth of price rises.

Core inflation, excluding volatile food and energy prices, reaccelerated to 6.2% YoY from 5.8% in January.

Services inflation, a measure watched carefully by the Bank of England for signs of potential wage pressures, jumped to 6.6% YoY from 6% YoY in January.

Odds of a 25-basis point increase tomorrow have moved from a coin-flip (50/50%) last night to near- certainty (96%) at the time of writing:

This latest data dump renders Britain the sole Group of Seven nation with inflation stuck at double-digit levels, and with growth also acutely below pre-pandemic trend.

The MPC’s balancing act between weighing acute and persistent price pressures against the squeeze being felt by businesses and households has just become more precarious.

TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Team plc

More articles like this

Team plc

Bridging the gender wealth gap

Empowering women in finance is crucial to bridging the gender wealth gap. Discover how Concentric is leading the way in promoting financial education and equality.

Team plc

Investor alert the wealth effect and market corrections

Market corrections are an inevitable part of investing. Since 1950, there have been 52 instances where markets have dropped by 10% or more, a phenomenon known as ‘correction territory’. While volatility can be unsettling, history reassures

Team plc

Concentric Group accelerates its growth with specialised divisions

Concentric Group has taken a significant step forward by introducing three distinct divisions, each designed to offer targeted expertise and solutions. This strategic move enhances its ability to align clients’ financial goals with optimised outcomes, leveraging

Team plc

Gold’s remarkable rise defies odds

In 2024, gold saw a historic +25% return despite market challenges, driven by central bank purchases. Learn why gold remains a trusted asset in uncertain times.

Team plc

US election sparks market resurgence and investor optimism

Donald Trump’s historic return to the political stage in 2024 reignited market enthusiasm, setting the tone for a quarter marked by optimism and growth. Trump’s decisive victory not only delivered a Republican clean sweep but also