UK Shop Price Inflation Accelerates, GDP Growth Eases

Arthi Gupta
07 Nov, 2012
New York City

The UK indexes slumped after shop price inflation accelerated to 1.5% in October and economy estimated to expand 1.1% in 2013 and 1.7% in 2014. Stagecoach agreed to acquire the bus business and assets of Bluebird for

[R]4:10 PM London – The UK indexes slumped after shop price inflation accelerated to 1.5% in October and economy estimated to expand 1.1% in 2013 and 1.7% in 2014. Stagecoach agreed to acquire the bus business and assets of Bluebird for £2 million.[/R]

The UK indexes slumped after the European Commission lowered its outlook for economic growth this and next year and also estimated unemployment to peak in 2013.

In London, the benchmark index FTSE 100 slumped 76.68 or 1.3% to 5,807.64 and the pound edged lower to $1.5987.

Market indexes sold off after the re-election President Barack Obama and divided Congress that is likely to toughen the negotiations to avert the automatic spending cuts and tax increases of $600 billion from Jan 1.

UK Shop Price Inflation Accelerates

The UK overall shop price inflation accelerated to 1.5% in October from 1% in September, the British Retail Consortium said in a report today.

Food inflation increased to 4% in October from 3.1% in September. Non-food prices were broadly flat in October after falling 0.2% in September.

UK Output Eases

The UK economic output grew 0.5% in the three months ending in October after 1% increase the three months ending in September, the monthly gross domestic product estimates by the National Institute of Economic and Social Research showed.

The agency estimates the economy to expand 1.1% in 2013 and 1.7% in 2014, returning GDP to its pre-recession level by the end of 2014.

Gainers & Losers

Burberry Group plc slumped 3.2% to 1,211 pence after the luxury goods brand reported first-half total revenue growth of 6% to £883 million. Profit before tax for the quarter declined to £111.9 million from £158.7 last year.

Pearson Plc rose 1.4% to 1,257 pence after the publisher is said to be mulling the sale of Financial Times newspaper, according to media reports.

Smurfit Kappa Group Plc fell 2% to €8.37 after the producers of paper-based packaging reported third quarter total revenue fell 2% to €1.83 billion from last year. Profit for the period rose to €80 million from €55 million last year.

Spirax-Sarco Engineering plc soared 7.2% to 2,124 pence after the industrial engineering company announced that through its newly formed subsidiary company Spirax-Sarco Chile Limitada acquired the business and assets of the steam specialty business of Termodinámica Limitada based in Santiago, Chile for 2.5 billion Chilean Pesos or £3.3 million.

Stagecoach Group plc gained 0.1% to 277.90 pence after the transport group’s wholly owned indirect subsidiary, Greater Manchester Buses South Ltd agreed to acquire the bus business and assets of private operator Bluebird for £2 million.