UK inflation rate rises for second month in a row

Published On Dec 18, 2024, 2:00 AM

The UK inflation rate has increased to 2.6% for November, marking the highest level in eight months. Main contributors to this rise were fuel and clothing prices, along with higher ticket prices for entertainment. Analysts believe this will influence the Bank of England to maintain current interest rates, which could be detrimental to households facing cost-of-living issues. Despite the increase, inflation remains below its late 2022 peak. Forecasts suggest inflation could stabilize around the Bank's 2% target by the end of next year, although there are concerns about ongoing pressures related to wage increases and housing costs.

Read full article

Stock Forecasts

XLFView XLF chart on TradingView

Positive

Given the ongoing inflation and the likely decision by the Bank of England to keep interest rates stable, financial stocks, particularly those related to mortgages and loans, may benefit from maintaining their current rate environment. However, consumer discretionary sectors such as retail could face headwinds due to less consumer spending power.

XLYView XLY chart on TradingView

Negative

With heightened inflation, consumer goods companies may struggle as costs increase and consumer sentiment weakens. This could reflect negatively on stocks within this sector as well as ETFs focused on consumer discretionary goods.

Related News

Stock market today: Dow eyes longest losing streak since 1978 as stocks slide ahead of Fed decision

Dec 17, 2024, 2:58 PM

The Fed meeting kicks off with investors on alert for clues to the path of rates after the widely expected December cut.

NVDA
XLY
TSLA

The inflation you don’t see

Dec 17, 2024, 1:21 PM

Inflation is now a services problem, with the cost of rent, insurance, pet care, and many other things rising by more than incomes.

VNQ
XLY

High on Hope, Wall St. Hears What It Wants From Trump

Dec 17, 2024, 5:03 AM

Investors and executives are often emphasizing what they like in the president-elect’s agenda, while dismissing what they don’t as mere posturing.

XLF
XRT