Inflation rate up again a bit, a little further above 2% target, driven by, for example, used car sales prices up 4.4% in June alone, which we covered last month.

Base effects, eg comparisons with pandemic price falls a year ago, driving a lot of this…
used car price surge is also a result of pandemic, eventually. Demand has shot up, because new car production slowed at a time when demand rebounded, forcing people to buy second hand. microchip production was diverted away from new cars to electronics last year during pandemic
Heading for peak of about 3% in coming months, above target, but not as high as after recent crises or as seen now in US.

would trigger a letter of explanation from the Governor to Chancellor, which would say, “these are mainly bottlenecks and arithmetic effects of reopening”
*** ONS cites HGV driver shortage driving spike in producer transport costs - below series stable for two decades, ticked upwards late 2016, and in 2021 now surging...

Record high in overall rises of transportation & storage costs in last quarter - up 4.8% on same q last year
Used car price rises in the USA - record 10.5% rise in June, following massive rises in previous two months, meaning annual rate is an incredible 45% up on last June... chip shortage effect

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Faisal Islam

Faisal Islam Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @faisalislam

11 Jul
These two? Image
Sancho coming on
And sir Marcus rashford
Read 4 tweets
11 Jul
Outside Wembley now… @LukeShaw23….
Perhaps underrated by Mourinho, but actually dynamite 🧨
Sweet caroline…
Pretty chaotic outside stadium… they stopped activating tickets at outer barrier because of those rushing security checks, which means they don’t work at gate…and you have to go back to outer gate. but also some enterprising people trying to get in with screenshots of tickets!!
Read 7 tweets
6 Jul
OBR chief Richard Hughes coming up on Today in a mo, previewing the new Fiscal Risks Report…
Triple Lock uprating due to 8% earnings “anomaly” forecast to coast £3 billion in payments to pensioners, says OBR’s chief Richard Hughes to @bbcnickrobinson on Today... and already no provision for £10bn of ongoing annual extra post pandemic spending...
Important OBR report onto medium term fiscal risks... and covid response

... UK fall in GDP in 2020 second worst behind Spain, worst in G7 reflecting big pandemic health hit
Read 5 tweets
1 Jul
NEW: Bank of England Governor Bailey at Mansion House says economy is “bouncing back rapidly” that inflation rise “will continue through the rest of this year.. further above target” but that this is expected to be a “temporary feature of the bounce back”...
Unexpectedly few references to the football in the Governor’s speech.... but he does cite the competing inflationary impact of the Beckham family ... a 29 year high in personal grooming inflation of 8%, though Victoria Beckham is cutting the avg price of her dresses by 40%
Chancellor at Mansion House: “I see no reason of substance why the UK should not continue to provide clearing services for countries in the EU” - says UK’s principles and values on regulation/ rule of law should reassure
Read 5 tweets
1 Jul
Significant new investment in sector v dependent on EU exports - timed to deal with rules of origin issue that was subject of very last negotiations between PM & VDL. Basically the batteries will need to be British for the car to be exported tariff free…
Strongest commitment yet from Nissan that “generation after generation” of workers in Sunderland will be employed, after this investment…
The questions - how much is the subsidy… as this is around one tenth of battery capacity required to maintain the current size of car industry, will everyone else get same subsidy… and what might happen if in a spat with EU over something else, tariffs were applied…
Read 4 tweets
25 Jun
From tonight’s early Newsnight… a Hancock half hour… of sorts…
Opposition calling for Health Sec to be fired by the PM - note we obviously asked the Government, backbench MPs and former aides to defend him - no one was available
Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!