Charting the global economy: UK services inflation tops forecast
inflation in its services sector last month, retail sales weakened and the budget deficit exceeded estimates — highlighting a host of challenges for UK policymakers.
Money markets see about a 40% chance that the Bank of England will lower interest rates next month, as officials balance signs of a weakening labor market with stubborn price pressures.
The European Central Bank, meanwhile, left interest rates unchanged after last month’s landmark cut. The ECB is weighing whether euro-zone inflation is cooling sufficiently to allow further monetary loosening.
Economic growth in China, meantime, fell short of nearly all projections, with second-quarter gross domestic product climbing 4.7%, amid consumer-spending weakness.
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:
Europe
UK services inflation, which policymakers have been watching for signs of continued domestic price pressures, held steady at 5.7% for the second straight month. Persistence in services inflation will further complicate calculations before Governor Andrew Bailey announces the BOE’s next decision on Aug. 1, even with headline inflation holding steady at the official 2% target.
The ECB will meet its inflation target in 2025, according to its quarterly survey of professional forecasters. The results come a day after the ECB held interest rates at 3.75%, without providing a clear signal of when it will next ease monetary policy. Market bets point toward two
