LOW INFLATION TO BOOST TRADE
This morning, we heard that headline inflation currently stands on target at 2%. However, services inflation (think hairdressers, restaurants, etc.) is 5.7% - considerably higher than expected.
Services inflation is currently more significant than headline inflation, meaning the timeline for rate cuts may be rethought.
Tomorrow's wage data should give more insight as to whether a summer rate cut will occur, but we won't find out officially until August 1st.
However thew positive main news of inflation being at the target rate of 2% will surely boost trade for the season ahead, giving jewellers some positivity and lots to look forward too.
The road ahead looks positive finally. Optimism is high and with more money in people's pocket, trade this season looks very promising.
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