EUR News
LAST UPDATE: June 5, 2025
Data Error Pushed Up UK Inflation in April, ONS Says
The UK’s Office for National Statistics (ONS) announced that a data error related to vehicle excise duty led to an overstatement of April’s inflation rate by 0.1 percentage points.
Insight
The revelation of this error has implications for monetary policy, as the inflated inflation figures may have influenced the Bank of England’s decisions regarding interest rates. The incident highlights the importance of accurate data in economic policymaking and may prompt a review of data collection and verification processes within the ONS. Additionally, it raises concerns about the reliability of official statistics, which are crucial for maintaining market confidence and guiding investment decisions.
British firms shrug off US tariffs, BoE survey shows
A Bank of England survey revealed that 70% of British businesses expect no impact from recent US tariffs on their sales, prices, or investment plans.
Insight
The survey suggests that UK businesses are demonstrating resilience in the face of new US trade barriers, possibly due to diversified markets or adaptive supply chains. However, the long-term effects of sustained tariffs could still pose challenges, particularly for export-oriented sectors. The findings may influence the Bank of England’s approach to monetary policy, as domestic factors appear to be more significant drivers of economic performance than external trade tensions.
Swedish flash inflation below forecast, strengthens rate cut hopes
Sweden’s inflation rate for May came in below expectations, with headline consumer prices rising by 2.3% year-on-year, bolstering hopes for a potential interest rate cut by the Riksbank.
Insight
The lower-than-expected inflation figures provide the Riksbank with greater flexibility to consider monetary easing to support economic growth. With the Swedish economy contracting in the first quarter and facing subdued investment and consumer spending, a rate cut could stimulate demand. However, the central bank must balance the need for economic support with the risk of reigniting inflation, particularly if global commodity prices rise or if the currency depreciates significantly.
