18th June 2010
This week we have seen lots of economic data releases to give us the latest snapshot of the UK economic recovery story.
Inflation dropped from 3.7% to 3.4% in May; however still remains at elevated level compared to the Bank of England's target rate at 2%.
Employment in the UK remains resilient with the claimant count dropping by over 30k in May, but risks remain with the looming spending cuts with the emergency budget on Tuesday 22nd June.
Retail sales received a World Cup boost in May and came in far stronger than market expectations at 0.6% showing that the UK consumer still has the propensity to spend.
This stronger than expected recovery story is reflected in Sterling strengthening over the past couple of months.