With just a day to go until the Bank of England’s interest rate decision, there’s yet another sign of how inflation is hurting households.
The latest index from the BRC showed shop price inflation almost doubled in January to hit its highest rate in nine years.
The figures showed growth accelerated across the board, with rising prices for goods from food to furniture – a worrying sign that inflation is becoming entrenched.
It follows official data showing the consumer price index leapt to a 20-year high of 5.4pc last month. The BRC index typically shows smaller changes than the CPI, which includes services and a larger range of goods.
5 things to start your day
1) Google defies tech gloom with record profits US behemoth enjoys soaring spending on search adverts as end of pandemic means further growth in ad segment
2) The bullying and harassment at the dark heart of Rio Tinto 21 women reported rape, attempted rape or sexual assault in the last five years, damning report reveals
3) Sadiq Khan threatens to shut the Tube for days on end as black hole hits £1.5bn Mayor warns a “road tax” and extending congestion charging zone will not be enough to balance Transport for London’s books
4) Tesco abandons its Jack’s stores but braces for battle with the discounters Tesco may be closing it’s Jack’s stores but it’s still serious about challenging Aldi and Lidl, say analysts
5) Tesla forced to fix 50,000 self-driving cars Self-driving software failed to bring some vehicles to a halt at junctions
What happened overnight
Asian markets extended their rally on Wednesday as investors become less worried about the Federal Reserve’s plans to tighten monetary policy. Tokyo, Sydney, Wellington and Manila were all up more than 1pc, while Jakarta was 0.8pc higher.
Coming up today
- Corporate: Vodafone, Glencore, Severn Trent (Trading update)
- Economics: BRC shop price index (UK), consumer price index (EU), ADP employment change (US)