| BUSINESSWEEK ONLINE : DECEMBER 27, 1999 ISSUE | ||||||||
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| INTERNATIONAL -- INTERNATIONAL FIGURES OF THE WEEK
Country Focus/Britain (int'l edition) Has Britain whipped inflation? Prices remain more subdued than most analysts had expected, given the economy's surging growth. The November retail price index (RPI) rose 1.4% from a year ago, while underlying inflation, excluding mortgage interest, held at 2.2%. The underlying RPI has been below the monetary authorities' 2.5% target for eight months in a row. Retailers say they can't raise prices because of intense competition from a wave of discount stores. Goods inflation in November was a mere 0.5%, as prices for clothing and footwear fell 3.3% from a year ago, the weakest showing since 1953. A November survey by the Confederation of British Industry shows that pricing expectations among trades companies were negative for the first time ever. However, it may be too early to declare an inflation victory. Service inflation in November remained near a six-year high of 3.9%, even as labor and materials costs are picking up. As a result, further interest-rate hikes are expected early next year. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS International Figures of the Week (int'l edition) Country Focus/Britain (int'l edition) CHART: British Inflation INTERACT E-Mail to Business Week Online | |||
