UK Inflation at 2.7%, IMF Approves $1.17 B Disbursement for Ireland

Arthi Gupta
18 Dec, 2012
New York City

The UK annual inflation remained unchanged at 2.7% in November and home prices increased in October. Irish economy expanded in the third quarter. Rolls-Royce won a $1 billion contract from Japan-based Skymark Airlines.

[R]3:10 PM London – The UK annual inflation remained unchanged at 2.7% in November and home prices increased in October. Irish economy expanded in the third quarter. Rolls-Royce won a $1 billion contract from Japan-based Skymark Airlines.[/R]

The UK indexes climbed after annual inflation remained flat in November.

Traders keenly await developments on the fiscal cliff in the U.S.

IMF Approves Disbursement for Ireland

The International Monetary Fund approved the disbursement of $1.17 billion to Ireland under the bailout program, bringing total disbursements under the Extended Fund Facility to about €19.37 billion or about $25.49 billion.

The arrangement for Ireland is part of a financing package amounting to €85 billion or $111.9 billion, also supported by the European Financial Stabilization Mechanism and European Financial Stability Facility, bilateral loans from Denmark, Sweden, and the United Kingdom, and Ireland’s own contributions.

In London, the benchmark index FTSE 100 gained 20.22 or 0.3% to 5,932.89 and the pound edged higher to $1.6208.

UK Inflation Flat

UK annual inflation remained unchanged at 2.7% in November, the Office for National Statistics said today.

From a month ago, consumer prices eased 0.2% in November, following a 0.5% rise in October.

Retail price inflation slowed to 3% in November from 3.2% in October.

In a separate report, output price index rose to 2.2% in November from 2.6% in October.

UK Home Prices Rise

UK home prices increased 1.5% on an annual basis in October from a 1.7% increase in the 12 months to September, data released by the Office for National Statistics showed.

The annual increase reflected growth of 1.8% in England and 2.8% in Wales, which were offset by a decline of 2.2% in Scotland and 11.7% in Northern Ireland.

Irish Factory Gate Inflation Slows

Irish manufacturing output price index rose 2.7% annually in November, after climbing 2.9% in October, data released by the Central Statistics Office showed.

Monthly factory gate prices increased 0.8% in November compared to an increase of 0.9% recorded for November of last year.

Separately, the Irish gross domestic product increased a seasonally adjusted 0.2% sequentially in the third quarter after gaining 0.4% in the second quarter, revised up from a flat reading.

On an annual basis, GDP climbed 0.8% in the third quarter, following the 0.5% drop in the second quarter.

Gainers & Losers

Rolls-Royce Holdings plc rose 1.5% to 872.50 pence after the power systems provider won a $1 billion contract from Japan''s Skymark Airlines for Trent 900 engines to power six Airbus A380 aircraft.

Whitbread Plc increased 1.5% to 2,455 pence after the hotel and restaurant group exchanged agreements with NFU Mutual and Standard Life Assurance Limited for the sale and leaseback of seven properties for £51 million.

Armour Group PLC fell 2% to 2.45 pence after the consumer electronics manufacturer reported full year group sales fell to £34.4 million compared with revenue of £42.3 million a year ago. Operational loss for the year widened to £12.32 million from £3.1 million a year earlier.