The banks will be looking notjust that where interest rates are now but where they will be over the entire term of the deal and i think there is a hope, at least, that s with a peak in bank of england interest rates, depending on where interest rates, depending on where interest finally settles. so it is notjust interest finally settles. so it is not just where interest interest finally settles. so it is notjust where interest rates are now but where they will be going forwards and if there is a chance of a peek at some stage in the next 12 months then after a peak you ll get some cuts. maybe the banks are looking towards that and also there is competition between them which is a good thing for consumers. what impact do you think this might have on the bank too? are they more likely to pause rate rises now to see how this plays out for a few months at least? we would like to think so. that will come down to inflation. at 7.9%, the last reading is still four times the bank of england s 2% target. the good news is, that headline rate is down from a peak of ii.i%. the bad news is that call rate of inflation that strips out to more volatile
Ruthless in its rate cutting. why do you think it may not do that? you are riaht, you think it may not do that? you are right. the you think it may not do that? mm are right, the headline rate of inflation has come down to 3.2% in the latest meeting in mid july. this is quite close to the midpoint target the central bank is looking at, 3%. however, core inflation is still higher, so what you see is headline inflation has come down because of false in food prices, fuel prices this year, but core prices are still high. they are still running over 5%, so what we are seeing in brazil, the services sector, the labour market, it is still being quite resilient this year. central banks are looking ahead, so they are looking at inflation expectations. they are trying to guide expectations through inflation over the next 12 months. and in brazil inflation expectations are still running above the 3% target for next year. and they are running just under li%, however this
Of those expectations back again. they think the next interest rate rise due next month will be a quarter of a point rather than half a percent. there are reasons for that, because all the measures of inflation, whether it is the headline rate, whether it is the raw materials rate or the underlying rate, they are now all pointing in the right direction. but this is not the right direction. but this is not the sort of number that will be felt in household or food the sort of number that will be felt in household orfood banks like in that report, these inflation numbers are still very high. we are not out of the inflationary woods, if you like, but we can now see a pass opening out of this. and you can get more information on today s inflation figures and what they mean for you on the tackling it together pages of the bbc news website or on the bbc news app. the prime minister has apologised for the treatment of lgbt veterans after they were sacked or forced out of the military for being gay. it was illegal to be gay in the british military until 2000, with thousands of veterans thought
To rise, but more slowly. that s partly down to cheaper fuel and energy bills. food prices have slowed a little, but they re still sky high. inflation was 7.9% injune, down from 8.7% in may a bigger drop than expected. we ll find out what it means for interest rates in a moment, and what the bank of england may do. but first, here s our economics editor faisal islam. yeah, do you want some of the mixture? we all know that everybody is having a hard time at the moment, but it is hitting the markets quite drastically. the customers have been quite loyal, but i think people are maybe choosing what they buy a little more carefully. they re looking at the weight - of the packaging, they re looking at what they get for the money. most measures of inflation are now heading in the right direction. but as you can see, at this southampton market, it s still happening slowly. the prices are rising, so we have to consider our margin, whether we hold our breath and keep the prices low and hope we get a better turnover, or put the prices up in line with inflation. the headline rate was lower
Programme. what is your reaction to these numbers? programme. what is your reaction to these numbers? as people have said it came down. these numbers? as people have said it came down. it these numbers? as people have said it came down, it is these numbers? as people have said it came down, it is still these numbers? as people have said it came down, it is still high, - these numbers? as people have said it came down, it is still high, down . it came down, it is still high, down by more than expected but it depends whether you are glass half full glass half empty person, it is good that it glass half empty person, it is good thatitis glass half empty person, it is good that it is coming down but even the headline rate is still prices going up headline rate is still prices going up less quickly, people should not expect to see falling prices. petrol prices are down but food is up 18% on last year and going back to two years ago when inflation started to pick up, overall prices are up by 20% and some things like food even more so it is not perfect yet. we alwa s more so it is not perfect yet. we always try more so it is not perfect yet. we always try and reinforce that just always try and reinforce thatjust because the rate is coming down does not mean prices are, that is still increasing. let s look at what can be done, levers pulled to try to
Inflation was 7.9% injune, down from 8.7% in may, a bigger drop than expected. we ll find out what it means for interest rates in a moment and what the bank of england may do. but first here s our economics editor, faisal islam. yeah, do you want some of the mixture? we all know that everybody is having a hard time at the moment, but it is hitting the markets quite drastically. the customers have been quite loyal, but i think people are maybe choosing what they buy a little more carefully. they re looking at the weight - of the packaging, they re looking at what they get for the money. most measures of inflation are now heading in the right direction. but as you can see, at this southampton market, it s still happening slowly. the prices are rising, so we have to consider our margin, whether we hold our breath and keep the prices low and hope we get a better turnover, or put the prices up in line with inflation. the headline rate was lower than expected injune at 7.9%, thanks to falling petrol prices.
That here in uk one of the five biggest economies in the world, some people are struggling to buy enough food to feed themselves. new figures from the trussell trust seen by newsnight show the nature and scale of food insecurity across the uk. 11 million people, 14% of all uk adults or their households have experienced it in the year up to last summer. today bosses at four of the big supermarkets denied making too much money from soaring prices telling mps the industry is the most competitive it has ever been. food inflation on things like bread, cereal, chocolate has come down slightly although it remains very high at 18.3%. doubled the headline rate. tonight we have details coming of an intervention from the chancellor tomorrow to try to tackle the problem. nick will explain in a few minutes. first ben has been to
He has written to the chancellor saying that there should be action for him in a regulation to make sure that savers benefits from the change in interest rates. i recognize the concern is just the chancellor himself has recognized that this is something to be monitored carefully. he met with the banks on friday the primary focus was dealing with the implications of several positive things came out of that, we took the opportunity to to have conversations with your lender and not prejudice your credit rating as well as delaying reposition from the first payment that was a constructive conversation will continue to look at the gap between the interest on saving and the headline rate. let s talk about something that is in your personal you mentioned already public sector pay, if you want to keep
Underlying part of inflation doing, what is services inflation doing? those other parts that the bank of england has a much better chance of controlling and so they will still be very high. not quite as high as the headline rate but still almost 7%. so this is good news that it is going on the right direction but still very strong. the right direction but still very strong- the right direction but still very strong. i m sure anyone watching very strong. i m sure anyone watching in very strong. i m sure anyone watching in the very strong. i m sure anyone watching in the uk very strong. i m sure anyone watching in the uk will- very strong. i m sure anyone watching in the uk will want| very strong. i m sure anyone l watching in the uk will want to know for how long we will be in this position. we are expecting, as you say, the bank of england to raise rates tomorrow again. for how many months will it be raising rates, when will they stop, and for how long are we looking at very high inflation, do you think? i very high inflation, do you think? ~ , very high inflation, do you think? ~ , ., think? i think they are coming towards the think? i think they are coming towards the end think? i think they are coming towards the end of think? i think they are coming towards the end of the - towards the end of the tightening cycle, which is good news. but the bad news is they probably still need to do a few more. the bank of england raising the interest rate a few times more and the markets are pricing this in. inflation is coming down and the point is that price increases last year