Rolling coverage of the latest economic and financial news
- Introduction: UK inflation jumped again in June
- Prices rising at fastest pace in nearly three years
- ONS: price rises widespread, but some temporary factors
- Transport, motor fuel, clothing and food all factors
- Used car prices jump amid chip shortage
- Motor fuel prices up 20% in last year
Hannah Audino, economist at PwC, says several factors pushed up inflation, including:
“Inflation is unlikely to follow a smooth path this year, with different factors feeding irregularly into the monthly data.
In general, inflation is expected to follow an upwards trend as the economy reopens, allowing consumers to unleash some of their estimated £180bn of excess savings. We might see businesses raising prices in order to recoup lost revenues and also in response to rising input costs such as freight and raw materials”.
Second-hand car prices jumped by 4.4% in June alone.
This is partly due to the shortages of semiconductors which has hit the car industry. With fewer new vehicles rolling off the production lines, people are turning to the used market instead.
Inflation rate up again a bit, a little further above 2% target, driven by, for example, used car sales prices up 4.4% in June alone, which we covered last month.
Base effects, eg comparisons with pandemic price falls a year ago, driving a lot of this… https://t.co/fHFGZyQn5i
used car price surge is also a result of pandemic, eventually. Demand has shot up, because new car production slowed at a time when demand rebounded, forcing people to buy second hand. microchip production was diverted away from new cars to electronics last year during pandemic
Continue reading...from The Guardian https://ift.tt/3r6HVmb
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