UK Economy Stalls Amidst Tax Rises and Inflation

inflationUK economytax risesstagnationgross domestic product

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UK Economy Stalls Amidst Tax Rises and Inflation

The UK economy stagnated in the third quarter of 2024, with zero growth, according to revised figures from the Office for National Statistics. The Bank of England recently reported that the economy performed worse than expected in the last quarter of 2024, with no growth at all between October and December. Inflation is also rising at its fastest pace since March, adding to the economic woes. Businesses are expecting to cut jobs and raise prices as a result of tax rises, according to a CBI survey. The government's measures, including a rise in employer national insurance and higher minimum wage, could push firms to raise prices and reduce new jobs.

inflation
UK economy
tax rises
stagnation
gross domestic product

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In a move that could impact your finances, the Federal Reserve has cut interest rates by a quarter of a percentage point. This brings the total rate cuts to a full percentage point since September. The Fed also signaled a slower pace of cuts ahead, with just two more cuts expected in 2025. The decision comes amid uncertainty about potential policy changes after Donald Trump's second term begins, with some of his proposals potentially inflationary. The dollar rose on the news, but stock markets faltered. Here's what it means for you.

Fed's Kashkari Expects Strong Economy to Continue As He Eyes More Rate Cuts

economyinflationFederal Reserveinterest ratesNeel Kashkari

Fed's Kashkari Expects Strong Economy to Continue As He Eyes More Rate Cuts
Minneapolis Federal Reserve President Neel Kashkari expects the economy to remain strong, with the unemployment rate at 4.1% and inflation at 2.5%.*
Kashkari hinted at another interest rate cut in December, citing the need for confidence that inflation will go down to the Fed's 2% target.*
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FED CUTS INTEREST RATES AGAIN AFTER TRUMP ELECTION WIN; INFLATION EASING

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FED CUTS RATES FOR SECOND TIME
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FED CHAIR'S TERM
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UK Inflation Surprises with Big Drop, Paving Way for Rate Cuts

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UK Inflation Surprises with Big Drop, Paving Way for Rate Cuts
The UK inflation rate unexpectedly fell to 1.7% in September, the lowest in three years
The drop is due to lower airfares, petrol prices, and domestic/European flight fares
Food and non-alcoholic drink prices rose, but households were hit less than expected
Economists predict a quarter percentage point cut in November, with more to come
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US Economy Adds 142,000 Jobs in August, Fed Likely to Cut Rates

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US employers added 142,000 jobs in August, slightly below expectations. The unemployment rate decreased from 4.3% to 4.2%. This could prompt the Federal Reserve to cut interest rates in their upcoming meeting. Inflation has been falling, and officials hope to guide the US to a soft landing.

  • US economy added 142,000 jobs in August
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  • Inflation has been falling

Kamala Harris Unveils Economic Plan to Fight Inflation

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Kamala Harris, the Democratic vice president, is set to outline her economic plan on Friday. The plan includes support for a federal ban on price gouging, a practice that has been blamed for the recent surge in inflation. Harris and President Joe Biden will hold a joint rally in Washington DC's Maryland suburbs to discuss their efforts to lower prices. Polls show Harris leading Donald Trump both nationally and in several swing states. Trump will hold a press conference at 4.30pm today, and JD Vance, Trump's running mate, will speak in Pennsylvania at 10am. The Cook Political Report shifted its rating for Nevada's Senate race from 'toss-up' to 'leans Democrat' in good news for the incumbent Democrat Jacky Rosen. Trump is also set to be interviewed by Elon Musk this evening.

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