Sunday, 22 July 2018
New York
End to Squeeze Nears as U.K. Wages Increase Most Since 2015
Tuesday, 17 April 2018 15:52 WIB | EUROPE |Ekonomi inggris

U.K. wages are rising at their fastest pace in almost three years, raising the prospect of an end to the squeeze on living standards.

Annual pay growth excluding bonuses accelerated to 2.8 percent in the three months through February, the Office for National Statistics said Tuesday. Consumer-price inflation averaged 2.9 percent in the same period and is forecast to fall toward 2 percent this year. 

The figures may reinforce speculation that the Bank of England will raise interest rates again next month, despite the economy being disrupted by bad weather in the first quarter.

Officials fear home-grown inflationary pressures are building as labor shortages leave firms struggling to fill vacancies.

Employment rose to a record high between December and February after the economy added 55,000 jobs, the ONS figures show. The jobless rate fell to 4.2 percent, the lowest since 1975 and below the BOE's estimate of the equilibrium rate.

The prospect of a return to real-income growth is good news for hard-pressed households after more than a year of wages lagging behind prices. Using a measure of inflation that includes owner-occupier housing costs, pay growth overtook inflation between December and February.

Few, however, expect any immediate effect, with consumer spending -- and the economy as a whole -- forecast to see the weakest growth in years in 2018.

Private-sector regular wages rose an annual 2.9 percent in the latest three months, and were up 3 percent in February alone.

In February, the jobless rate fell to an all-time low of 4 percent. Unemployment dropped by 16,000 to 1.42 million in the latest three months and the inactivity rate declined to a record low.

But while a May rate increase is all-but priced in by investors, not everyone is convinced that the labor market is running out of slack. 

A study co-authored by former policy maker David Blanchflower argued this week that there are still a significant number of people seeking more hours, meaning unemployment may have to fall below 3 percent before wage growth picks up any serious traction. 

Source: Bloomberg

Euro-Area Inflation Hits 2% Level Amid Boost From Oil Prices...
Friday, 29 June 2018 16:19 WIB

Inflasi area Euro mencapai level simbolik 2 persen pada bulan Juni untuk pertama kalinya dalam lebih dari setahun, didukung oleh harga minyak yang lebih tinggi. Kenaikan tingkat pertumbuhan harga dar...

U.K. Economy Grows Faster Than Estimated on Construction...
Friday, 29 June 2018 16:00 WIB

Industri konstruksi Inggris bernasib jauh lebih baik dari yang diperkirakan sebelumnya selama musim salju tiga bulan pertama tahun ini, memberikan dorongan yang tak terduga terhadap ekonomi. Output b...

German business morale falls in June...
Monday, 25 June 2018 15:28 WIB

Kepercayaan bisnis Jerman memburuk pada bulan Juni, sebuah survei memperlihatkan pada hari Senin, menunjukkan suasana di antara para eksekutif perusahaan di negara dengan ekonomi terbesar Eropa itu se...

Euro Area Growth Unexpectedly Quickens as Slowdown Risks Persist...
Friday, 22 June 2018 15:49 WIB

Momentum ekonomi di kawasan euro secara tak terduga meningkat pada bulan Juni, meskipun tanda-tanda mengkhawatirkan bertahan di wilayah dengan mata uang umum tersebut, IHS Markit mengatakan Jumat. In...

U.K. Inflation Drops More Than Expected to Slowest in a Year...
Wednesday, 18 April 2018 16:01 WIB

Inflasi Inggris melambat ke level terlemah dalam setahun di bulan Maret seiring Bank of England bersiap untuk menaikkan suku bunga bulan depan. Harga konsumen naik 2,5 persen dari tahun sebelumnya, t...

Hong Kong shares close higher

Hong Kong stocks closed higher Friday, with Chinese shares ending above water for the first time this week as the weak yuan currency defied US President Trump's attack on a strong dollar. The Hang Seng Index rose 0.76 percent, or 213.62 points, to...

Pompeo : US Won't Allow Russian Questioning of Former US Ambassador

The U.S. has no intention of allowing Russia to question Michael McFaul, Washington's former ambassador to Moscow and a fierce critic of Russian President Vladimir Putin, Secretary of State Mike Pompeo told VOA on Thursday. "It's not going to...

Dollar sees biggest one-day drop in 3 weeks after Trump comments

The U.S. dollar got pummeled on Friday after President Donald Trump accused China and the European Union of currency and interest-rate manipulation that he says has put the U.S. at a disadvantage. The ICE U.S. Dollar Index traded 0.7% lower to...

Gold Prices Pare Losses, But Still End at a 1-Year Low
Friday, 20 July 2018 00:55 WIB

Gold futures gave up much of their declines Thursday, but still finished at their lowest in about a year. President Donald Trump voiced his...

Gold Heads for Weekly Decline as Rate Outlook in Focus
Friday, 20 July 2018 09:02 WIB

Gold drops to trade near lowest in a year as investors weigh Federal Reserve Chairman Jerome Powell's comments on interest rate...

Gold at Lowest in a Year as Dollar Emboldens Bears
Thursday, 19 July 2018 17:19 WIB

Gold trades at lowest in a year as Federal Reserve Chairman Jerome Powell™s comments on U.S. employment and inflation help to sustain...

Gold Steadies Within Correction Territory After Trump Remarks Sting Dollar
Friday, 20 July 2018 20:07 WIB

Gold prices managed a slim early advance Friday, barely chipping away at a weekly loss as the metal remained pinned within the correction territory...