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June UK Inflation Remains at the 2% Target, with a Potential rate cut on the “Knife Edge.”

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Inflation
Kin Cheung

(VOR News) – Inflation in the United Kingdom stayed constant at the target rate of 2% that was established by the Bank of England in the year leading up to June, as indicated by official figures that were issued on Wednesday.

It is possible that this result will be sufficient for policymakers to accomplish their goal of lowering the cost of borrowing money the following month.

The Office of National Statistics reports that the hospitality business, which includes establishments such as hotels and restaurants, was responsible for the most substantial upward contribution to the annualized inflation rate.

A number of analysts are of the opinion that the increased pricing can be attributable to the fact that Taylor Swift is now on tour in the United Kingdom.

The clothing and footwear business, which had extensive sales throughout the month, was the sector that made the most substantial contribution to the fall in sales.

When the flat number was compared to June of the previous year, it was slightly higher than what was projected to be the case. In the majority of instances, analysts had anticipated a modest fall to 1.9% of the total economy.

July 2021 was the last time inflation reached 2%.

Before the price increase began. As a result of the Coronavirus pandemic, supply chain concerns initially occurred. The increase in energy costs was attributed to Russia’s invasion of Ukraine. The situation was exacerbated by both of these factors.

The financial markets are anticipating that the decision about whether or not the Bank of England will decrease its main interest rate from 5.25% on August 1 will be something of a close call. Both of these decisions are expected to be made on August 1.

There are a number of policymakers who continue to voice concern regarding the extent of price rises in the vital services sector as well as the rate of wage increases. Both of these factors significantly increase the likelihood of a return in inflation in the event that interest rates are decreased too recently.

The deputy chief economist of abrdn, which was formerly known as Aberdeen Asset Management, stated that “Today’s inflation report will keep the Bank of England’s August rate decision on a knife edge because of the uncertainty surrounding it.”

Abrdn employee Luke Bartholomew made this inflation statement.

“More fundamentally, the persistent stickiness of service inflation will leave the Bank wondering how long inflation will remain at the 2% target,” according to the official statement.

In order to battle the quick development in inflation, which reached a peak of more than 11% in late 2022, the Bank of England, along with the Federal Reserve of the United States and other central banks, swiftly increased interest rates in late 2021 from near zero. This was done in order to counteract the rapid growth in inflation.

The British economy, on the other hand, has been slowed down by increased interest rates, which have contributed to the reduction of inflation by making it more expensive to borrow money.

There has been very little improvement in the economy of the United Kingdom since the recovery from the epidemic.

The Prime Minister of the United Kingdom, Keir Starmer, has underlined that the key purpose of his Labour government would be to increase the pace of economic growth in the United Kingdom.

This is the primary objective that he desires to achieve. An statement addressing the goals that his government has for the coming year is going to be made later on Wednesday and will be made public.

According to Starmer, the measures that were disclosed in the King’s Speech to Parliament will “create wealth for people up and down the country” and “take the brakes off Britain” by stimulating economic growth. This is what Starmer believes will happen.

SOURCE: USN

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Salman Ahmad is a seasoned freelance writer who contributes insightful articles to VORNews. With years of experience in journalism, he possesses a knack for crafting compelling narratives that resonate with readers. Salman's writing style strikes a balance between depth and accessibility, allowing him to tackle complex topics while maintaining clarity.

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Keir Starmer Rejects Meeting With WW2 Veteran Over Her Frozen Pension

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Anne Puckridge, orld War Two veteran, state pension
"It's the injustice of it that is so unfair, the fact that we were never warned."

UK Prime Minister Keir Starmer has rejected a request from a 99-year-old WW2 for a meeting to discuss the frozen state pension policy for citizens living abroad. Starmer declined the meeting but offered an alternative meeting with Pensions Minister Emma Reynolds.

Anne Puckridge, who turns 100 this month, went from her home in Canada to agitate Keir Starmer’s Labour government over the state pension freeze.

The World War II veteran told the BBC that she is “angry” and “heartbroken” following a meeting with the pensions minister, who led her to believe that the government will not reconsider its policy of freezing the state pensions of some British people living abroad.

Anne Puckridge is one of approximately 453,000 British retirees living overseas who do not receive an annual increase in their state pension.

Pensions Minister Emma Reynolds agreed to a meeting after Sir Keir Starmer’s request to meet was denied owing to purported “pressures on his diary.”

Ms. Puckridge stated that the meeting in Parliament left her feeling “bitterly disappointed” and “disgusted”.

She stated that she had the idea Reynolds had been “polite enough and kind enough to come in and spend her time with her,” but that her mind had already been made up before the meeting began.

Ms Puckridge stated that she and her other campaigners would have to think carefully about what they could do from now on, but she assured them that they would take action.

State Pension Minister Reynolds thanked Ms Puckridge for the meeting and for sharing her insights.

A Department for Work and Pensions (DWP) representative stated that the government recognizes that “people move abroad for various reasons, and we provide clear information on how this can affect their pensions.”

The policy of increasing the UK state pension for recipients living abroad has existed for many years.

Since she relocated to Canada in 2001 at the age of 76 to live closer to her daughter, Ms Puckridge has received £72.50 (C$129.00) per week.

Her state pension is now less than half the £169.50 (C$302.00) paid to seniors still residing in the United Kingdom. She told the BBC that frozen pensions touch all aspects of life.

“You’ve got to be careful about entertainment,” she told me. “You must realize that you cannot be as kind to your grandkids as you would like.

“You feel you’ve lost all sense of dignity, the government has thrown you away, you know, out of sight out of mind.”

Ms. Puckridge stated that when she alerted the Department for Work and Pensions (DWP) that she was moving to Canada, “they never said a word about [my] pension being frozen”.

“The first I knew about it was when my first rise was due,” she recalled.

“I didn’t understand it. So I wrote and enquired about it, and I was told no… you will not receive any additional pension rises when you leave the UK.” She said, “It’s the injustice of it that is so unfair, the fact that we were never warned.”

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Air Force Drones Spotted Over UK Military Bases

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Air Force Drones Spotted Over UK Military Bases
The drones were not considered hostile, the USAF said,

British military expertise has been brought in to assist in identifying persons responsible for flying Air Force drones near US military locations. According to the BBC, 60 RAF troops have been dispatched to assist the US Air Force with its probe.

The Air Force drones were not deemed hostile, according to the USAF, who added that the sightings “fluctuated and varied between the bases” and “ranged in sizes and configurations”.

According to the Ministry of Defence, “We are supporting the US Air Force response.”

The announcement follows several recent reports of unmanned aerial vehicles sighted near RAF Lakenheath and RAF Mildenhall in Suffolk and RAF Feltwell in adjacent Norfolk.

There have been other reports of drone activity overnight. According to the USAF, the vehicles were few in number and modest in size.

A representative for the US Air Forces in Europe stated, “We can confirm that there were sightings yesterday during nighttime hours, but the number fluctuated and varied between the bases throughout the night.”

The official stated that since the first sightings on November 20th, there has been “no impact on residents or infrastructure, and they have not been identified as hostile.”

However, the Air Force drones remained under surveillance “to ensure the safety and security of the installations.”

They said, “We request individuals in the area to contact either local police or security forces if they see anything suspicious.”

Treat threats seriously’

Officials in the United States and the United Kingdom have not said who is responsible for the recent drone activity.

However, the BBC understands there were worries that a state actor could be involved.

In recent months, intelligence officials have warned of increasing Russian sabotage operations against Western countries supporting Ukraine.

RAF Mildenhall is primarily home to the USAF’s 100th Air Refuelling Wing; RAF Lakenheath is home to USAF F-35A and F-15E fighter jets; and RAF Feltwell is mainly concerned with logistics and provides housing for military personnel.

A spokesman for the MoD, which owns the bases, said: “We take threats seriously and maintain robust measures at defence sites.

“We are supporting the US Air Force response.”

The USAF has not said who it believed to be behind the incidents.

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General Election Petition in UK Hits 2 Million Signatures

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Keir Starmer, UK, General Election
Starmer has ruled out an general election after a petition reached two million signatures

British Prime Minister Keir Starmer has ruled out holding an early general election after a petition calling for a second vote garnered two million signatures.

Over the weekend, a petition calling for another general election was started on the UK Parliament website. It cited Starmer’s failure to keep all his pledges made in the run-up to the previous election. By Monday mid-morning, it had surpassed two million signatures.

When asked about the petition, Starmer said he was “not surprised” that some individuals who did not vote for Labour in the previous election want a “re-run” of the poll.

He claimed that he had “inherited a lot of problems” from the previous administration and had resolved to “take the hard decisions first.”

Starmer ruled out an early general election, stating that only the Prime Minister can request that the King call a general election; it simply will not happen, he said.

This petition, started last week and sponsored by Reform UK leader Nigel Farage, calls on the government to schedule a new general election.
To sign a petition, you must verify that you are a British citizen or resident and provide a postcode.

The petition states, “I would prefer there to be another general election. I believe the present Labour government has broken the pledges they made before the last election.”

The petition comes only five months after Labour won the July general election with 9.7 million votes and 412 seats in the House of Commons.

However, the Labour Party garnered only 35% of the vote, the lowest percentage gained by a single-party administration since the conclusion of WWII.

Some of the policies implemented by Starmer and his Labour government have received significant criticism, including an inheritance tax on farms, a reduction in winter heating payments, an increase in employers’ national insurance, and applying VAT to private school fees.

According to the most recent Ipsos political pulse poll, the Labour Party is unpopular, with 28% of the public favoring it and 49% opposing it.

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