The UK economy is experiencing a slight boon in the wake of today’s inflation figures with the stock market jumping and borrowing costs plummeting. Economists cite this as much-needed “relief” for Chancellor Rachel Reeves amid recent market turmoil.
Figures from the Office for National Statistics (ONS) published today revealed the consumer price index (CPI) rate of inflation for the 12 months to December 2024 fell to 2.5 per cent, down from 2.4 per cent.
This morning, the FTSE 100 added 55 points at the open to reach 8,257, primarily led by Persimmon PLC (LSE:PSN) and other housebuilding companies, signalling renewed confidence among parts of the private sector.
Bond markets have reacted positively to the figures, with 10 and 30-year gilt yields plummeting by eight and six basis points respectively to 4.81 per cent and 5.39 per cent.
Last week, long-term and short-term gilt yields surged which placed renewed scrutiny on the Chancellor’s…
