Bank of England governor Andrew Bailey warns Britain’s economic bounceback is slowing; upcoming data on jobs, inflation and retail sales will show if he is right – and may provide crucial inputs before the Sept 23 policy meeting.
July inflation, dismissed as a blip, slowed to 2%. Retail sales fell 2.5% month-on-month, blamed on bad weather and soccer. Will Wednesday’s August data show a pick-up?Inflation pressures remain high — July factory output costs rose 4.9% year-on-year, the most in nearly 10 years. Input costs jumped by almost 10%.
Tuesday’s jobs data is also in focus, given labour shortages, a record 8.8% rise in June average wages, and below-average unemployment. The end of furlough schemes may push people into the jobs market, but skills shortages risk fuelling price pressures driven by supply bottlenecks and commodity prices.