15th January 2025
UK Inflation Eases, However Core Pressures Persist
UK inflation eased to 2.5% in December, down slightly from 2.6% in November, as energy and transport costs continued to decline. However, core inflation held firm at 2.7%, reflecting persistent pressures in services and wage growth. The Bank of England is expected to adopt a cautious stance, with policymakers balancing moderating headline inflation against underlying risks that remain above the 2% target. Despite cooling from last year’s peaks, structural price drivers and business cost pressures pose challenges to sustained disinflation. The pound edged 0.1% lower to $1.26 following the release, as markets weighed the potential for a slower shift in monetary policy.
10th January 2025
US posts another blockbuster jobs number for December
The US economy posted another blowout jobs number in December with 256,000 jobs created. This was well above the markets estimates of 165,000 and evidences just how strong the US continues to be. The market sold off on the news primarily because a strong economy with a strong labour market does not need interest rate cuts to which the market is very keen to see keep coming down.