UK inflation rate stays at 3.1%

UK inflation rate stays at 3.1%: September's inflation figures mean benefits will rise next April by the CPI's 3।1% - but pensions will increase by the higher 4.6% RPI.
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Consumer Confidence in UK Reaches Its 18-Month High

According to U.K. Nationwide Building Society, consumer confidence index rose to 71, its highest point for the last year and a half. Such an increase adds to recovery signs showing that the U.K. economy is on its way to complete growth.
Tomorrow Bank of England is supposed to announce its further direction of the monetary policy probably keeping its benchmark interest rate at its current low in spite of all signs that the recession fades away.

Economic reports last week appeared to deliver positive information. Thus, U.K. house prices have already reached its last year levels showing the end of shrinking in house sector. Consumer spending rose by 3 percent to 103 level.

Some positive news from labor market in Great Britain: the measuring of hiring for jobs inclined to 51.3 in September, from 50.6 in August.

Extreme Budget Deficit for UK

Today Great Britain released the highest level of budget deficit since 1993.

As the Office for National Statistics deliverd today, the 16.1 billion-pound ($26.3 billion) deficit in budget is the largest one especially compared with a deficit of 9.9 billion pounds in August 2008. Total current government receipts fell 9.1% from a year ago to 34.1 billion pounds, while total current spending inclined to 45.6 billion from 44.3 billion pounds.

These data may be considered as a significant impact on Gordon Brown`s positions before the elections. David Cameron, the leader of Conservative party accused Brown of misleading Parliament when Treasury documents showed that in April the Labour government was predictong it would have to curb departmental budgets by 9.3 percent in real terms by 2014 because of soaring welfare and debt-interest costs.

The GBP responded negatively falling to its lowest Forex rates.