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UK Retail Price Index Below Expectations in August
Confirmed
In Short: The UK's retail price index for August came in below expectations, reflecting a cooling inflation trend. However, rising oil prices continue to impact consumer costs, with gasoline prices hitting nearly $4.32 per gallon.
Despite the UK's retail price index (RPI) falling below expectations in August, the overall inflation trend is showing signs of moderation. Meanwhile, rising oil prices are driving up consumer costs, with gasoline prices reaching nearly $4.32 per gallon, up from $4.08 a month ago and $3.18 a year ago.
According to reports, the national average price of regular gasoline has risen, alongside diesel, which now stands at $6.23 a gallon. This increase is partly due to rising oil prices, which have also led to higher input costs for exporters, potentially affecting their margins and competitiveness.
Additionally, grocery price inflation accelerated to 2.3% year-over-year in the four weeks to September 6, from 2.1% in the previous report. The US August jobs report, which showed robust employment figures, further bolstered expectations that the Federal Reserve would raise interest rates, contributing to the firming US dollar.
As a result, the RSI around 40 suggests subdued momentum, hinting that any corrective uptick in the market would likely face selling interest into nearby overhead levels. The ongoing conflict in the Middle East continues to disrupt global oil shipments, pushing prices higher and impacting various sectors, including retail and export industries.
What's confirmed
- Despite the UK's retail price index (RPI) falling below expectations in August, the overall inflation trend is showing signs of moderation. Meanwhile, rising oil prices are driving up consumer costs, with gasoline prices reaching nearly $4.32 per gallon, up from $4.08 a month ago and $3.18 a year ago.
- According to reports, the national average price of regular gasoline has risen, alongside diesel, which now stands at $6.23 a gallon. This increase is partly due to rising oil prices, which have also led to higher input costs for exporters, potentially affecting their margins and competitiveness.
- Additionally, grocery price inflation accelerated to 2.3% year-over-year in the four weeks to September 6, from 2.1% in the previous report. The US August jobs report, which showed robust employment figures, further bolstered expectations that the Federal Reserve would raise interest rates, contributing to the firming US dollar.
- As a result, the RSI around 40 suggests subdued momentum, hinting that any corrective uptick in the market would likely face selling interest into nearby overhead levels. The ongoing conflict in the Middle East continues to disrupt global oil shipments, pushing prices higher and impacting various sectors, including retail and export industries.
What's still developing
- U.S. Oil Inventories Jump as Cushing Stocks Keep Falling What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… Back in late June, after the United States and Iran agreed to cease hostilities in the Persian Gulf for 60 days, oil prices took a dive.
- Two months later, Brent is trading at over $107 per barrel, and WTI is moving closer to $103, as a deep chasm opens up between the price for oil stuck in the Gulf and oil that can be moved with no threat of a drone or missile attack.
- With the dangerous chokepoint clear, prices jump, Reuters’ Russell also reported on Monday.
- This, in turn, highlights the resilience of crude demand even with prices significantly higher than at the start of the year.
- Meanwhile, crude produced outside the Persian Gulf is enjoying higher prices as well.
- The medium sweet Pyrenees was trading at $138.04 per barrel last Friday, compared with $70.59 per barrel on February 27, right before the United States and Israel launched their attacks on Iran, igniting the war that led to the closure of Hormuz.
- While oil exporters in the Gulf struggle to get their oil out of Hormuz, Saudi Arabia is trying to repair its vital East-West pipeline, and the Yemeni Houthis just struck more targets in the kingdom.
- Murban crude—ADNOC’s flagship blend—is trading at over $127 per barrel, by the way, highlighting the gap between the price for oil having to pass through Hormuz and the price for oil that does not.