Falling oil prices and supermarket price wars have probably pushed UK inflation to its lowest level since 2002.Introduction: UK inflation to fallBrent crude falls below $46/barrelMorrisons CEO sacked, heads for a beer 8.08am GMT Overnight, the British Retail Consortium reported that UK shops have suffered their toughest Christmas since the financial crisis struck. 8.00am GMT UK historian Glen O’Hara tweets:The oil price fall is just becoming a rout. It's extraordinary - one of the most powerful changes in politics and economics for many years. 7.57am GMT E.ON has become the first UK utility major firm to pass the cheaper wholesale pricers onto customers.The German firm is cutting gas prices by 3.5 % - which will apparently cut £24 off the average annual gas bill.“Whilst this announcement is welcome, it is underwhelming in the face of wholesale prices falling around 20 per cent over the past year. Anyone still languishing on standard tariffs should take action, as bigger savings are easily available. 7.50am GMT Brent oil at $45.45. Down another 4%. 7.44am GMT Morrisons CEO Dalton Philips is putting on a brave face this morning after learning that his time at the supermarket chain is over.Curiously awkward Morrisons conference call, featuring the new chairman and the chief exec he's just fired.Dalton Philips: "I don't have another job to go to. My wife has given me a long list of chores to do/" #Morrisons 7.32am GMT The oil price has hit its lowest level in almost six years this morning, suggesting that inflation will continue to fall in 2015. The cost of a barrel of Brent crude shed another 3.8% to $45.62, a drop of almost two dollars. The Rout continues ... Bloomberg breaking news: WTI Crude Oil Falls Below $45 a Barrel for the First Time Since April 2009 7.21am GMT Good morning, and welcome to our rolling coverage of the financial markets, the global economy, the eurozone and business.Britain’s inflation rate is expected to fall today, bringing relief to households but also fuelling fears that the world economy may be veering into a deflationary spiral.Focus will continue to be on the ECB and any potential easing measures, particularly QE.It also seems like Greek exit fears are somewhat downgraded and this has seen Greek 10-year yields cool and equities rally. On the calendar today we have Italian industrial production along with UK CPI and PPI. The euro remains relatively sidelined but it won’t take much to ignite some risk appetite, given the amount of headline risk Europe continues to face. Continue reading...
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