The latest drop in the inflation reading from 6.8% in July down to 6.7% in August, marks the sixth straight decline in the headline rate.
Next has raised its profit forecast for the third time in four months after customers bought more clothes than expected and the UK fashion retailer’s own cost pressures eased. The company said on Thursday that it expected pre-tax profit for the full year to be £875mn, up from an earlier forecast of £845mn. The revision follows an upgrade in June when Next said a combination of warmer weather and wage inflation had helped drive sales.
The two-year US Treasury yield hit a 17-year high on Wednesday and stocks fell after the Federal Reserve left its benchmark policy rate unchanged but officials projected more monetary tightening in 2023. The policy-sensitive two-year yield rose 0.07 percentage points to almost 5.18 per cent in late afternoon trading in New York — its highest level since July 2006 — having fluctuated in the hours after the Fed’s announcement and chair Jay Powell’s accompanying speech. The benchmark 10-year Treasury yield was up 0.03 percentage points at 4.39 per cent. Bond yields move inversely to their prices.