UK economy unexpectedly flatlined in January, official figures show
January’s GDP figure comes as higher energy prices look likely to drive up inflation, dashing hopes of interest rate cut
Key context
- Source
- The Guardian — established analytical coverage
- Scope
- Europe · GB
- Theme
- Inflation, Rates, Growth
- Signals
- CPI, core PCE, wage growth
Why it matters
If readings around show january’s gdp remain elevated, central banks face pressure to delay rate cuts, keeping real borrowing costs high and weighing on credit growth. Should unexpectedly flatlined january feed through to wage negotiations, a price-wage spiral would extend the tightening cycle and widen sovereign bond spreads. A credible decline in core measures would reopen the door to easing and compress front-end yields.
InflationRatesGrowthGB
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