The UK's annual rate of consumer price inflation eased back to 9.9 per cent in August, down from a 40-year high of 10.1 per cent in July, the Office for National Statistics said on Wednesday.
Downward pressure from the cost of motor fuel was the main reason for the fall in the annual rate of inflation, the ONS said. Despite the fall, the pace of price increases is still uncomfortably high.
Wednesday's data slightly eases the pressure on the Bank of England, which is battling the highest inflation of any major advanced economy. Economists had expected the rate to remain largely flat. The pound erased earlier gains against the dollar after the release, trading at $1.1495 shortly after 7am UK time (10am UAE).
The reading may fan speculation that inflation has already peaked, relieving some of the pressure on the central bank to act. Prime Minister Liz Truss announced plans to freeze an increase in energy bills last week, a move economists say will prevent a further surge in prices this winter but keep inflation strong well into next year.
“The Bank of England continues to face a tough challenge to bring price growth back towards its target level,” said Rachel Winter, partner at retail investment company Killik & Co. “Policymakers have already hinted that they intend to deliver another increase in the base rate next week, given the ongoing underlying pressures.”
The 6.8 per cent drop in fuel prices was the highest since between March and April 2020, the early days of the pandemic, when oil prices briefly went negative on some markets.
“The easing in the annual inflation rate in August 2022 reflected principally a fall in the price of motor fuels in the transport part of the index,” the ONS said.
“Smaller, partially offsetting, upward effects came from price rises for food and non-alcoholic beverages, miscellaneous goods and services, and clothing and footwear.”
"The new measures announced by the government to cap energy prices for households ... could see inflation peak at a more modest 10.5 per cent in October," said KPMG UK chief economist Yael Selfin.
"However, with inflation in near double digits, the combination of expected tax cuts and support measures for households may prompt the Bank of England to take a more hawkish stance to avoid higher inflation further down the line."
The Bank of England has forecast an inflation-induced UK recession starting this year, and had predicted a peak of 13 per cent.
The August rate is still almost five times the Bank of England's target level of 2 per cent.
Earlier this week, official figures showed the UK's recession-threatened economy rebounded in July, but by less than expected after a hefty fall the previous month. British gross domestic product grew 0.2 per cent after contracting by 0.6 per cent in June. Economists had expected 0.3 per cent growth.
The Bank of England expects the UK economy to enter recession before the end of the year, amid decades-high inflation fuelled by high energy and food bills.
On Tuesday, Britain's unemployment fell to its lowest level since 1974 at 3.6 per cent in the three months to July. However, wages fell further behind spiralling inflation. The number of people on payrolls for August increased by 71,000 on July figures to a record 29.7 million, the ONS said.
The economic inactivity rate — measuring the share of the population who are not in work and not looking for work — increased by 0.4 percentage points on the quarter to 21.7 per cent. This was led by those classified as long-term sick and students.
The lower-than-expected figure in the UK is a stark contrast to Tuesday’s report in the US, which showed inflation is hotter than most were predicting. That reading triggered a rout in stocks as traders became more certain the Federal Reserve will raise interest rates by three quarters of a percentage point next week.
The Bank of England will hold its own meeting next week, after postponing this week's rate decision after the death of Queen Elizabeth II. Investors are torn between anticipating either a 50 or 75 basis-point rise from the current 1.75 per cent.
Interest rate futures show a 79 per cent chance that the Bank of England will raise rates by 75 basis points to 2.5 per cent on September 22. This would be its biggest rate rise since 1989, excluding a brief attempt to bolster sterling during a 1992 exchange-rate crisis.
The British Chambers of Commerce criticised a lack of detail from the government over the plan to cap energy costs.
"There is a limit to how long any firm can sustain these rising costs before something has to give," said Alex Veitch, director of policy at the British Chambers of Commerce. "We know from our research that two thirds of businesses plan to increase their own prices.
“The size of last week’s government intervention on energy prices should have a dampening effect on inflation when it is enacted.
“But the lack of detail on exactly how much help any individual business will get, and for how long, means very few will be planning to invest any time soon.
“There are also a whole host of other issues ranging from transport and shipping costs, raw material prices, energy sector regulation and the tight labour market, that must be addressed."
The Institute for Public Policy Research think tank said further government intervention was needed to prevent “more poverty and more destitution” as a result of rising prices.
"Many people will welcome CPI inflation easing slightly this month, falling from 10.1 per cent to 9.9 per cent, including the Bank of England, who are deciding whether to raise interest rates next week," Dr George Dibb from the centre-left institute said.
“However, this headline figure has been pulled down by falling petrol prices, and it hides worrying news that the prices of food and clothing are continuing to accelerate upwards.
“High inflation means high prices, and without intervention this will lead to more hardship, more poverty and more destitution."
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
The specs
Common to all models unless otherwise stated
Engine: 4-cylinder 2-litre T-GDi
0-100kph: 5.3 seconds (Elantra); 5.5 seconds (Kona); 6.1 seconds (Veloster)
Power: 276hp
Torque: 392Nm
Transmission: 6-Speed Manual/ 8-Speed Dual Clutch FWD
Price: TBC
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ILT20%20UAE%20stars
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Honeymoonish
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What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
KILLING OF QASSEM SULEIMANI
SECRET%20INVASION
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Company%20Profile
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New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
Allardyce's management career
Clubs (10) - Limerick (1991-1992), Perston North End (1992), Blackpool (1994-1996), Notts County (1997-1999), Bolton Wanderers (1999-2007), Newcastle United (2007-2008), Blackburn Rovers (2008-2010), West Ham United (2011-2015), Sunderland (2016), Crystal Palace (2016-2017)
Countries (1) - England (2016)
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Company%C2%A0profile
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The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Simran
Director Hansal Mehta
Stars: Kangana Ranaut, Soham Shah, Esha Tiwari Pandey
Three stars
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
Padmaavat
Director: Sanjay Leela Bhansali
Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh
3.5/5
UAE currency: the story behind the money in your pockets
more from Janine di Giovanni
A%20QUIET%20PLACE
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'Saand Ki Aankh'
Produced by: Reliance Entertainment with Chalk and Cheese Films
Director: Tushar Hiranandani
Cast: Taapsee Pannu, Bhumi Pednekar, Prakash Jha, Vineet Singh
Rating: 3.5/5 stars
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Two products to make at home
Toilet cleaner
1 cup baking soda
1 cup castile soap
10-20 drops of lemon essential oil (or another oil of your choice)
Method:
1. Mix the baking soda and castile soap until you get a nice consistency.
2. Add the essential oil to the mix.
Air Freshener
100ml water
5 drops of the essential oil of your choice (note: lavender is a nice one for this)
Method:
1. Add water and oil to spray bottle to store.
2. Shake well before use.
More from Rashmee Roshan Lall
