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Reaction to UK CPI (19/01/22)

by Shafiq Shabir
Head of Electronic Trading, Intertrader

Today’s inflation data makes for eye-watering reading. With the annual rise in CPI elevated to a 30-year high of 5.4% in December, households across the country will today be looking to the months ahead in what will be a huge crunch on household incomes.

Wage growth is expected to sit at 4.5 per cent for 2022, meaning many will see their real-term incomes fall behind the increasingly tight cost of living, compounded by rising energy prices and National Insurance contributions.

We’re now expecting a significant slowdown in economic growth this year and interest rates could climb to 1% by the end of 2022.

For traders, this higher inflationary period should see the continued sell-off of riskier and more speculative assets.

Published: 19 January 2022

You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is a macro summary of scheduled news announcements and is not investment advice, independent research or an investment recommendation. The information provided is believed to be accurate at the date the information is produced.

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