Tax cuts will revitalise the spirit that made Britain writes PATRICK MINFORD
PATRICK MINFORD: Just as I did with Mrs Thatcher, I am happy today to stand with Liz Truss, and defend the economic vision she has laid out in her leadership campaign. I believe the British economy can easily withstand the increase in borrowing needed to fund Liz Truss’s key promise: to start cutting taxes from her first day if elected to No 10. We need to revitalise our entrepreneurial spirit, just as Mrs Thatcher did, and this is the way to do it.
Consumers in the euro zone expect higher inflation and weaker economic development, according to a new survey by the European Central Bank (ECB). In June they expected an annual price increase rate of 5.0 percent in the view of twelve months, the ECB announced on Thursday in Frankfurt. This is a little more than in May. With a view to the next three years, the expectations of 2.5 percent increased to 2.8 percent in the previous month. The ECB strives for a rate of two percent in the medium perspective. © Hendrik Schmidt/dpa/symbol image , according to a survey, consumers in the euro zone expect a higher price increase rate.
expectations for economic development were a little more pessimistic than in the previous month. For example, the respondents expect a shrinkage of economic output by 1.3 percent. At the same time, consumers see an increase in unemployment.
Growth slowdown and cooling prices could ease rate hike pressure
The preliminary version of the S&P Global's Purchasing Managers' Index (PMI), covering services and manufacturing firms, fell to 52.8 - the lowest since February 2021.Slowing growth and softening price pressures could see the Bank of England reassess the recently touted option of delivering a bigger interest rate hike next month, experts have said.
Video: Videographik: The ECB ensures price stability (AFP)
The income expectations of one year remain unchanged when an increase of 0.9 percent. However, the households surveyed expect a significantly higher increase in expenses at 3.9 percent. In particular, poorer households see significantly higher expenses.
The consumer survey (“Consumer Expectations Survey”) was published for the first time and is now to be released monthly. The ECB interviewed 14,000 people from Germany, France, Italy, Spain, the Netherlands and Belgium. These countries are responsible for around 85 percent of the gross domestic product of the eurozone. Inflation expectations play a major role in the central bank's monetary policy.
Inflation: Germany will adopt a package of tax measures valued at 10 billion euros to mitigate the surge in .
prices among these measures is the increase in the amount of family allowances. © supplied by Franceinfo Germany wants to limit the Inflation at all costs. The German Minister of Finance, Christian Lindner, announced on Wednesday August 10, that Berlin was going to adopt a series of tax measures in the amount of 10 billion euros in 2023 to alleviate the flight of prices .