Bulletin

Feelgood factor rises as wages gather pace

Official figures released this week are expected to show that total average earnings in Britain for the final quarter of last year rose by more than 1.5% over the previous year. With inflation having fallen to 0.5% in December, the growth in weekly pay has now outpaced price rises since the early autumn. Inflation is also forecast to have dropped to 0.4% in January. There now appears to be a consensus among economists that the UK is set to enter a brief period of deflation on the back of low oil prices, cuts to domestic fuel bills and the supermarket price war. Falls in the price of oil and other raw materials are also having a dramatic effect on manufacturers' costs. Analysts are now predicting that in January alone, producers' input prices fell by as much as 3%, which would be almost 12% lower than in the equivalent month of 2014. Output prices for goods leaving factories are also believed to have been about 1.6% lower in January than a year earlier. These reductions should be passed on to the consumer over the next few months. However, prices in the service sector are continuing to edge up.

 

Note: News bulletin content has been provided by a third-party and is not the opinion of Santander.

 

Other Articles

This International Women’s Day, our analysis reveals a continuing untapped potential and huge opportunity when it comes to women in…

London

London-based ACT Clean has secured private investor backing for a £10.2 million management buyout.

Bulletin
Spain

Santander takes 12 UK food and drink manufacturers to Spain on one of our successful trade missions. Adam Payne in the international team…

This International Women’s Day, our analysis reveals a continuing untapped potential and huge opportunity when it comes to women in…

London

London-based ACT Clean has secured private investor backing for a £10.2 million management buyout.

Bulletin
Getting a taste for Spain!

Santander takes 12 UK food and drink manufacturers to Spain on one of our Trade Missions. Alicia Ferrero Vega in the International team…

Bulletin

Where Next?