Although the measure had been projected to climb higher towards the end of 2006, Paul Dales at Capital Economics warned that, despite recent softer news on economic activity, the inflation report could «ensure that the MPC remains in tightening mode going into the new year.»
Mervyn King, Bank governor, has made it clear that with judgments about economic prospects difficult, greater importance will be placed on «developments in costs, pay and prices.»
The concerns that higher headline price rises could bolster consumers\' inflation expectations were also touched upon this week by Paul Tucker, the Bank\'s director for markets.
In a speech, Mr Tucker said he voted for an increase in interest rates at the MPC\'s November meeting because he wanted to head off inflationary wage demands and send a message that the Bank was willing to act to contain prices.
However, according to a survey by the Recruitment and Employment Confederation and KPMG, the professional services group, the rate of pay inflation for permanent jobs is running at the highest level for almost six years and at a 22-month high for temporary work.
The study said competition for talent against a background of rising demand for staff was pushing up wage bills. A series of recent high-profile private sector pay settlements, such as the annual rises of at least 4 per cent won by thousands of workers at Ford, Rolls-Royce and National Air Traffic Services, have suggested that annual wage demands increasingly are linked to the increase in the retail price index.
The RPI, which includes interest payments on mortgages, climbed in the 12 months to November by 3.9 per cent, up from 3.7 per cent in October and the highest reading since May 1998, said the ONS.
The main cause of acceleration in the CPI was the cost of transport, particularly petrol, where prices fell more slowly than for the comparable period last year.
Upward momentum was provided by increases in utility bills, particularly gas prices, and slower falls in the prices of electronic equipment.
Core inflation, a measure that excludes volatile items such as alcohol, tobacco, food and energy, climbed from 1.4 per cent in October to 1.6 per cent in November.
By Jamie Chisholm and Andrew Taylor
Слова и выражения:
acceleration – ускорение
alcohol – алкогольные напитки
bolster – поддерживать
comparable – сравнимый, сопоставимый
governor – управляющий
likelihood – вероятность
link – связь; связывать
momentum – движение
mortgage – ипотека, ипотечный кредит
petrol – бензин
project – планировать, проектировать
reason – аргументировать, говорить аргументированно
slow – замедлять(ся)
successive – следующие друг за другом
survey – исследование
target – цель
the City – Сити, деловой район Лондона
tobacco – табачные изделия
volatile – изменчивые, изменяющиеся, гибкие
target measure – целевые показатели
transport costs – транспортные издержки
running a home – обслуживание жилища
gain ground – укрепляться ( о валюте )
CPI (consumer price index) – индекс потребительских цен Capital Economics
Capital Economics Ltd – независимое консультационное агентство в Лондоне, основанное в 1999
softer news – «мягкие» прогнозы, новости
MPC (marginal propensity to consume) – предельная склонность к потреблению (показатель, которым характеризуется функциональная зависимость текущих потребительских расходов от величины доходов)
tightening mode – напряженность, жесткость
with judgments about economic prospects difficult – в условиях, когда трудно судить об экономических перспективах
headline price – цены на ведущие товары и продукты
inflation expectations – инфляционные ожидания
touch upon – коснуться ( чего-либо )
head off – предвосхитить
inflationary wage demands – требования повышения заработной платы, вызванные инфляционными ожиданиями
contain prices – сдерживать цены
The Recruitment and Employment Confederation(REC) – профессиональный союз, представляющий интересы работников службы занятости
KPMG – международная аудиторская и налоговая компания
pay inflation – инфляция, вызванная ростом заработной платы
permanent jobs – постоянные рабочие места
temporary work – временная работа
competition for talent – конкуренция среди работодателей, направленная на поиск и найм наиболее талантливых рабочих и служащих
against a background – на фоне
push up – толкать вверх
wage bills – чеки на заработную плату
high-profile private sector – крупные предприятия частного сектора
pay settlement – договоренность об уровне заработной платы между работодателями и работниками
wage demand – требования по повышению заработной платы
RPI (retail price index) – индекс розничных цен
interest payments – выплаты процентов
utility bills – счета за коммунальные услуги
gas prices – цены на газ
electronic equipment – электронное оборудование
core inflation – «чистая» инфляция
US Warns UAE on Trade with Iran, Syria
Washington is alarmed at the diversion of militarily sensitive technology to Iran and Syria via Dubai, a US official said on Thursday.
«Increasing numbers of controlled items are being diverted from ports in the United Arab Emirates – Dubai – to Syria and Iran,» the administration official said, threatening unspecified action if this was not halted.
The concerns have been shared with US trade negotiators and are likely to further strain US – UAE free trade talks.
Concerns centre on the transshipment of technology with conventional military uses, such as sensors, and come as the US tightens controls on exports to China, a supplier of military technology and hardware to Iran. The official said: «If we see no action in the coming months, we may have to take other steps.» The threat underlines the difficulties for US relations in the region arising from the White House policy of isolating Iran and Syria, said Philip Gordon, a fellow at the Brookings Institution.
«This comes at a time when the administration is trying to resist calls from the Iraq Study Group to engage with Tehran,» he said, adding the comments served to highlight the view that Iran and Syria were a threat to global security.
«Diplomatic or economic retaliation against the UAE by the US was not inevitable,» the official said. «It would be designed to send a message to other countries that this is a serious and important issue for the US and that actions will have consequences.»
The administration has also briefed key members of Congress, where there is bipartisan support for more pressure on the UAE.
A congressional aide familiar with the briefings said: "The administration\'s view is that… we get pretty good cooperation from the UAE. We can go to them and say, «There is a ship and it has got this specific component on board and we don\'t want it going to Tehran.»
«But if it is not a missile component or something that can be linked directly to weapons of mass destruction, then maybe some of the princes will look the other way,» said the aide.
«The view in Congress is that Iran and its desire to get nuclear weapons has to be the overriding concern when set against economic goals… we are just as concerned about delivery systems and the conventional components.»
Concerns about shipping in Dubai led to this week\'s sale of five US container terminals by DP World, the Dubai ports operator.
By Eoin Callan and Guy Dinmore in Washington
Слова и выражения:
aide – помощник конгрессмена
alarm – тревога, беспокойство; тревожить, беспокоить
arise – вставать, подниматься
brief – короткий, краткий; дать краткое изложение, извещать коротко и ясно
briefing – брифинг ( краткая пресс-конференция с участием пресс-секретаря официального органа )
centre – центр; иметь центром
consequences – последствия
conventional – обычный
desire – желание; желать
diversion – отклонение, отвлечение
divert – отклонить(ся)
engage – вступать в отношения
familiar – знакомый
fellow – член колледжа, университета
halt – останавливать(ся)
hardware – техника
highlight – выделять, освещать, подчеркивать
inevitable – неизбежный
militarily – имеющий отношение к военному делу
missile – ракета
on board – на борту
resist – противостоять, сопротивляться
retaliation – возмездие, ответный удар
security – безопасность
sensitive – чувствительный, восприимчивый
sensor – сенсор, приемник
strain – напряжение; вызывать напряжение
threaten – угрожать
tighten – ужесточать
transshipment – транспортировка с перепогрузкой товара
underline – подчеркнуть
use – использование
via – через, посредством
militarily sensitive – могущий быть использованным в военных целях
controlled items – контролируемые образцы