Today sterling continues to strengthen against the euro but has weakened against the dollar following the Bank of England’s latest inflation rate. This morning’s figures beat market predictions of 9.4% as July’s inflation rate hit 10.1% – more than 5 times higher than the Bank’s target. The rate is still the highest in 40 years.
Following rising energy prices, both conservative leadership candidates have ruled out freezing energy prices. Liz Truss said that “what’s not right is throwing money at the problem without dealing with the root cause” (referring to Putin). Sunak said what he “will not do is follow policies that risk increasing inflation” stressing that doing so is “certainly not Conservative”.
On Friday, data on Gfk consumer confidence will be released. The figures will provide an insight into how Britain’s consumers are feeling about the country’s current economic condition. In the last release, figures remained at a record low of -41 and are predicted to fall even lower to -43.
