Financial matters

[SteveH]

LIVE REPORT......UK exits recession with fastest growth in two years

Economists had expected a 0.1% increase in GDP but between February and March, it grew by 0.4%.

Within that, accommodation and food services - ie dining out - rose strongly. That's perhaps not surprising given the early Easter in March as well as Mother's Day and St Patrick's Day.

On the manufacturing side of the economy, output from the pharmaceutical sector jumped by 7.6% month-on-month but that's because this industry delivers in bulk order so output is sort of lumpy.

Car production, however, shrank by 2.8%.

The Society of Motor Manufacturers and Traders has said previously that UK car production dropped in March because manufacturers have been adjusting their factories to make new car models such as electric vehicles.

Read More https://www.bbc.co.uk/news/live/business-68986351

[Hugo]

Has anyone had a renewal quote from an insurance company company and when they have questioned it with the company they have been offered the same thing at a reduced price?
This practise is so annoying and the companies shouldn't be treating existing customers like that.
This happened to me last week when I had a renewal notice from the RAC Breakdown Recovery Service.        I have been with the RAC since 1971 and have had only one call out in the last 15 years or more.
They quoted me ?365.99 for 12 months but as a valued customer they would give me an extra 3 months free
I checked on line and a new customer could have the cover for ?273.52
              Before phoning the RAC  I checked the AA website and got a quote with the same cover for about ?190.00
But for a first time customer there was an introductory offer of 40% off for one year only that came to ?115.20
So armed with all this info I phoned the RAC and told them that I could have the same cover with the AA for ?115.20 and asked them could they match that.     A discussion took place with the operator's manager and  the operator came back and said "yes" they would match it
The confirmation came back from my bank today so I'll remain with the RAC.    At least for another year!

[SteveH]

Food price rises are returning to "more normal" rates, research suggests, although shoppers are still seeking out cheaper own-brand goods.

Grocery price inflation - the rate at which prices increase - has fallen to 2.4%, according to research firm Kantar, the lowest since October 2021.

The findings come ahead of official figures due on Wednesday which are expected to show a sharp drop in overall inflation.

The easing of price rises has raised expectations that the Bank of England will cut interest rates this summer.

Kantar said that despite the easing of food price rises, shoppers were still following money-saving habits.

"Typically, an inflation rate of around 3% is when we start to see marked changes in consumers? behaviour, with shoppers trading down to cheaper items when the rate goes above this line and vice versa when the rate drops," said Fraser McKevitt, head of retail and consumer insight at Kantar.

"However, after nearly two and a half years of rapidly rising prices, it could take a bit longer for shoppers to unwind the habits they have learnt to help them manage the cost of living crisis.

"Own-label lines are proving resilient, for example, and they are still growing faster than brands, making up over half (52%) of total spending."

Sales of premium own-label ranges remained popular, up by 9.9% from a year earlier.

Read more........ https://www.bbc.co.uk/news/articles/c0xxwz00nz9o

[SteveH]

Water firms ask for bill rises of between 24% and 91%
Water companies in England and Wales want bills to increase by between 24% and 91% over the next five years, according to figures compiled by the consumer watchdog.

Southern Water is asking for the biggest jump of 91%, according to the Consumer Council for Water (CCW), with South Staffordshire and Cambridge Water asking for the lowest rise of 24%.

How much do companies want to increase their bills by?     https://www.bbc.co.uk/news/articles/ce55vp78n40o


Inflation rate falls to lowest in almost three years
Falling gas and electricity prices have driven UK inflation to its lowest level in almost three years.

Prices rose at 2.3% in the year to April, down from 3.2% the month before, official figures show.

While inflation, which measures the price of something over time, has fallen further, it remains higher than the Bank of England's target of 2% and was slightly higher than experts expected.

But the Bank has hinted that interest rates, which have been raised in recent years to slow price rises, could be cut this summer. Rates are currently at 5.25% - the highest level in 16 years.
cont https://www.bbc.co.uk/news/articles/c511m7jgyl3o

[SteveH]

A typical household's energy bill will fall by £122 a year from July under the new price cap.

The latest quarterly cap for England, Wales and Scotland means a household using a typical amount of gas and electricity will pay £1,568 a year.

It means that bills will be the lowest for two years.

The cap, set by the regulator Ofgem, limits the maximum price that can be charged for each unit of gas and electricity - not the total bill.

If you use more energy, you will pay more.

cont https://www.bbc.co.uk/news/articles/cxeey91v540o

[SteveH]

Warning over new supermarket spending 'challenges'

New supermarket "challenges" that reward shoppers with extra loyalty points for buying more could lead to overspending, consumer groups have warned.

Four of the UK's biggest supermarkets - Tesco, Sainsbury’s, Asda and Morrisons - are now offering members of their loyalty schemes bonus points if they hit spending targets.

The supermarkets all say their schemes offer customers better value and more personalised savings.

But consumer group Which? and debt charity StepChange warned that setting shopping challenges could encourage people to spend more than they can afford.

These challenges are the latest development in supermarket loyalty card schemes which are becoming ever more sophisticated.

cont https://www.bbc.co.uk/news/articles/ceq33z0gxj4o

[SteveH]

European retailers are rushing to place their Christmas orders early as soaring shipping costs and trade route disruption threaten holiday deliveries, experts say.

For the last few months, vessels belonging to Western firms have been attacked in the Red Sea by Houthi rebels backing Hamas in its war with Israel, driving shipping prices up.

Container prices, which peaked in January and briefly declined, have rebounded sharply in recent weeks.

One business told the BBC that increased costs were likely to feed through to the price of big-ticket items such as white goods.

Nick Glynn, boss of the Buy It Direct group, owns several online retailers including Appliances Direct and Laptops Direct, which are having to plan and book well in advance to make sure their shipments arrive on time.

Because they are planning ahead, he said he didn't think Black Friday and Christmas stock would be affected.

cont https://www.bbc.co.uk/news/articles/cqee78djzmro

[SteveH]

Did you know New or Basic State Pension payments can be made weekly instead of monthly? Here's how you can do it

former DWP employee has shared how the frequency of State Pension payments can easily be changed to weekly,

cont https://www.inyourarea.co.uk/news/did-you-know-new-or-basic-state-pension-payments-can-be-made-weekly-instead-of-monthly-heres-how-you-can-do-it/