UK food inflation to hit 15% this summer – IGD

“Food price inflation in Britain is likely to peak at up to 15% this summer and high levels will persist into 2023, industry researcher the Institute of Grocery Distribution (IGD) said on Thursday,” per Reuters.

The news also mentioned that IGD predicted that the average monthly spend on groceries for a typical family of four would reach 439 pounds ($528) in January 2023, up from 396 pounds in January 2022.”

On a different path, the Financial Times (FT) said, “A sharp rise in the number of people dropping out of the UK workforce has been largely because of older workers choosing to retire early, according to new analysis by the Institute for Fiscal Studies.”

FT also adds, “Almost half a million fewer people were in paid work in first quarter than before pandemic.”

Furthermore, Reuters said that Brexit is no reason to radically alter British financial regulation and regulators should not be forced to water down rules to boost London’s competitiveness, or stray from global standards, a UK parliamentary committee report said on Thursday.

GBP/USD braces for BOE

Following the news, GBP/USD retreats to 1.2160, paring the post-Fed gains, as the cable traders await the Bank of England’s (BOE) monetary policy decision.

Also read: BOE Preview: Why GBP/USD set to suffer even in response to a 50 bps hike, a lose-lose event