There is some much needed good news this morning as UK inflation eased slightly in August. The consumer price index fell to 9.9% last month, according to the ONS. That’s down from 10.1% in July, though still not far from a 40-year high. The figure will provide some relief to the Bank of England, which will announce its interest rate decision next week as it grapples with persistently high inflation. Price rises are still embedded in the economy, although Prime Minister Liz Truss’ support for energy bills could provide further relief later in the year.

5 things to start your day

  1. Unemployment at lowest level since 1974 as NHS backlog prompts ‘alarming’ exodus – Sharp rise in long-term illnesses pushes unemployment to lowest level since 1974 as labor market shrinks
  2. New York Times Staff Refuses to Return to Office – Over 1,200 Staff Revolt Against Paper
  3. Hawksmoor slams pressure to close on Queen Elizabeth II funeral – Hosts of businesses announce they are closing as a mark of respect
  4. Port strikes deal fresh blow to Britain’s fragile supply chains – Workers at two of the UK’s biggest ports will strike for up to two weeks later this month over a pay dispute
  5. Deloitte plans to hire 1,000 staff outside London – Big Four firm joins accountancy networks expanding beyond capital

What happened in the night

Asian stocks fell, the dollar held steady and the U.S. yield curve inverted deeply on Wednesday as a U.S. inflation report dashed hopes of a peak in inflation and fueled bets that interest rates may need to rise higher and to longer period of time. Wall Street posted its biggest drop in two years, the safe-haven dollar posted its biggest jump since early 2020 and yields on the two-year note jumped to a 15-year high. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3 percent in early Asian trade on Wednesday. Resource-heavy Australia fell 2.8 percent, while Japan’s Nikkei fell 2.7 percent. Both S&P 500 futures and Nasdaq futures rose 0.1% after heavy selling. The Dow Jones Industrial Average fell 3.94%, the S&P 500 lost 4.2% and the Nasdaq Composite fell 5.16%.

It’s coming today

Corporate: Dunelm, Redrow (whole), Tullow Oil (intermediate) Economics: Consumer Price Index (UK), Producer Price Index (UK, US), Retail Price Index (UK), Industrial Production (EU)