The focus this month has been on the gas supply shortage resulting in a sharp rise in gas prices. This has led gas suppliers, specifically those who are more vulnerable to the spot rate of gas e.g., Bulb energy or Avro Energy, to come under threat.
The rise in gas prices and the subsequent knock-on effects add to the argument the UK (like many other nations) may be entering an inflationary period.
At present, the OECD forecast for the G20 inflation rate is 4.5% for this year and 3.5% the following year.
Following this, Bank of England officials, at their monthly meeting, revealed they anticipate inflation could rise above 4% by the end of 2021, as interest rates were left untouched. However, many economists predict the spike in inflation to be a short-term spike.
As the leisure sector has fully opened for the first time since March 2020, this has seen job vacancies rise. As well as restaurants, hotels, and bars, a wave of new jobs in areas such as transport and retail have helped push advertised vacancies above 1 million for the first time.
The rise in hiring seems to be due to businesses replacing workers who were furloughed during the coronavirus restrictions. At the end of August, there were 1.3 million employees on the government’s job retention scheme, with the scheme due to close at the end of September.
Average earnings to the end of August were considerably higher than a year ago by around 8 percent. Allowing a positive outlook for when the furlough scheme is closed – as the vacancies will look to be filled by the excess pool of labour.Back to blog