UK inflation rises to 2.9% as Iran war fuels living costs squeeze | Inflation

UK inflation rises to 2.9% as Iran war fuels living costs squeeze | Inflation

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UK inflation rose to 2.9% in July as the impact of the Iran war on energy prices triggered a renewed cost of living squeeze for British households.Underscoring the challenge for Andy Burnham’s government to give “breathing space” to hard-pressed consumers, the Office for National Statistics said inflation rose from 2.6% in June.It comes after British consumers faced the sharpest summer increase in energy charges in four years in July as the US-Israel war on Iran sent shock waves through global energy markets.City economists had forecast an increase in the consumer prices index measure of inflation to 2.9%.Against a volatile backdrop in the Middle East, the Bank of England is considering whether to raise interest rates from as early as next month in response to fears over stubbornly high inflation becoming entrenched in the economy.However, separate figures on Tuesday showing a slowdown in the jobs market – including a fall in job vacancies and a slump in private sector pay growth...
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UK job security weakens to lowest since 2023 as consumer confidence dips

UK job security weakens to lowest since 2023 as consumer confidence dips

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Consumer confidence took a step back in August as job security worsened to its weakest level for more than three years, according to new figures. The closely watched S&P Global UK consumer sentiment index slipped to 42.9 for the month, compared with a previous four-month high of 43.4 in July. Any reading below 50 indicates that sentiment remains broadly negative. Maryam Baluch, Economist at S&P Global Market Intelligence, said: "The recent better growth seen in the economy is failing to feed through to households. "The latest survey shows labour market concerns emerging as a growing drag on consumer confidence." The latest survey showed that job security data dropped to a reading...
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UK remains trapped in a deepening jobs drought

UK remains trapped in a deepening jobs drought

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The Work Foundation at Lancaster University responded to the labour market figures for August 2026 released by the Office for National Statistics. Ben Harrison, Director of the Work Foundation at Lancaster University commented:“Today’s figures indicate the UK remains trapped in a deepening jobs drought. Vacancies have fallen to the lowest level outside of the Covid-19 pandemic since 2014, and young people are facing some of the toughest conditions for finding work in more than a decade.“Unemployment remains unchanged at 4.9%, but the headline figure masks a particularly difficult jobs market for young people. Youth unemployment among 16-24 year olds now...
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Cool UK jobs market questions need for rate hikes

Cool UK jobs market questions need for rate hikes

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Ongoing weakness in private-sector hiring and wage growth suggests the bar is still relatively high for a rate hike in 2026, barring a severe and prolonged spike in energy prices. We expect the Bank of England to remain on hold this year and resume rate cuts from spring 2027.If the UK economy really is picking up speed – as last week’s GDP data tentatively hints – then there’s little sign of it in the jobs market.Admittedly, just like the growth figures, it really depends on where you look. Government is still actively hiring, a trend we've seen throughout this year. Payroll growth is running at 1.1% on a three-month annualised basis, though we have our doubts over how long this can continue given the more austere plans for public spending coming down the track.In sharp contrast, consumer-facing industries (hospitality and retail) have been consistently shedding jobs, and if anything, the pace of decline is getting worse. That follows ongoing pressure since...
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UK high street giant in administration with 1,800 jobs lost

UK high street giant in administration with 1,800 jobs lost

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M&Co, which was founded in 1834 and operated 168 stores across the UK, owed more than £46 million at the time of its collapse. The clothing retailer closed all of its brick-and-mortar stores across the UK in spring 2023 after going into administration, including past local branches in places like Didcot, Abingdon, and Kidlington Newly published documents reveal that more than 600 unsecured creditors will lose more than £33 million, with the case moving from administration to dissolution in June. READ MORE: Jeremy Clarkson gives update on future as he admits 'too difficult' Adele Macleod, Gavin Park and Robert Harding of Teneo were appointed joint administrators, marking the second time the company had entered administration. M&Co first entered administration during the pandemic, resulting in the loss of 47 stores and 380 jobs. The company was bought back by...
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Pound Slips as UK Jobs Data Disappoints, CPI Ahead

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Key MomentsGBP/USD trades near 1.3535 in early Asian hours as softer UK labor figures weigh on Sterling.The UK Unemployment Rate held at 4.9% in the three months to June, above the 4.8% consensus, while wage growth slowed.Market pricing reflects expectations for one Bank of England rate increase by year-end, taking the Bank rate from 3.75% to 4.0%.GBP/USD Edges Lower Ahead of UK CPI ReleaseGBP/USD is trading close to 1.3535 in early Asian dealings on Wednesday, with the British Pound losing ground against the US Dollar after weaker-than-expected UK labor data. Market participants are now focused on the upcoming UK Consumer Price Index (CPI) inflation report due later on Wednesday, which could further influence expectations for Bank of England (BoE) policy.The recent pullback in the pair comes as traders also reassess the outlook for US interest rates, dialing back expectations for a near-term Federal Reserve rate hike, which has tempered broader US Dollar strength.UK Labor Market Softens as Unemployment and Wage...
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UK payrolls fall 0.3% as vacancies ease to 707,000 in June

UK payrolls fall 0.3% as vacancies ease to 707,000 in June

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UK payrolled employee estimates data fell by 78,000, or 0.3 per cent between June 2025 and June 2026, pointing to a softer employment backdrop for textile, apparel and retail employers, according to the Office for National Statistics (ONS). On the month, the estimate was largely unchanged, decreasing by 13,000, rounded to 0 per cent, between May and June 2026.For April to June 2026, the number of payrolled employees fell by 86,000, or 0.3 per cent, over the year and by 37,000, or 0.1 per cent, over the quarter, In its Labour market overview, UK: August 2026, ONS said the early estimate for July 2026 decreased by 94,000, or 0.3 per cent, on the year and by 13,000, rounded to 0.0 per cent, on the month, to 30.3 million; the July figure is provisional and is likely to be revised when more data are received next month.UK labour market conditions softened, with payrolled employment falling 0.3 per cent year on year in...
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AI Is Creating More Jobs Than It Cuts in the UK, Lloyds Finds

AI Is Creating More Jobs Than It Cuts in the UK, Lloyds Finds

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UK businesses are not telling a simple story about AI replacing workers. The sharper point is that AI is creating roles for people with current skills while making the old entry points harder to find. A quarter of UK employers are hiring for AI skills now, and one in five are creating AI-specific roles. According to Lloyds Bank Business Barometer figures reported by Bloomberg on August 17, the survey covered 1,200 UK businesses and found that companies are putting AI into their hiring and training plans, not just their software budgets. Fifty-eight percent plan to spend more over the next year on building AI skills inside their existing workforce. That's the real story. The panic around AI and jobs has been led by American technology companies cutting staff while spending enormous sums on data centers. In Britain, the evidence is messier and more useful for you if you're hiring, looking for work, or trying to work out what skills still carry weight. Compare...
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