GBP
Britain’s economy created the largest number of new jobs in nearly a year and
unemployment hit its lowest rate since mid-2008 market data showed on Friday,
the last such report before a closely fought election on May 7. Prime Minister
David Cameron hailed the numbers, which cover the three months to February, as
underlining his government’s “jobs miracle”. The data helped the
pound hit its highest level in nearly four weeks against the dollar.
 

GBP
Britain’s economy created the largest number of new jobs in nearly a year and
unemployment hit its lowest rate since mid-2008 market data showed on Friday,
the last such report before a closely fought election on May 7. Prime Minister
David Cameron hailed the numbers, which cover the three months to February, as
underlining his government’s “jobs miracle”. The data helped the
pound hit its highest level in nearly four weeks against the dollar.
 
The unemployment rate now stands at 5.6 percent, down from 7.9 percent at the
time of the last election. But the pace of growth in workers’ pay was largely
unchanged at nearly 2 percent.
 
With inflation at zero, the gradual recovery in pay is giving relief to workers
who suffered an almost unprecedented loss of spending power during Cameron’s
five-year term.
 
The number of people in employment rose by nearly a quarter of a million – the
biggest increase since April last year – to a record 31.05 million. The
employment rate also jumped to hit an all-time high of 73.4 percent.
 
Cameron got a boost when the head of the International Monetary Fund said his
government’s plan was working, although the Fund has also questioned the
country’s budget forecasts. “When we look at the comparative growth rates
delivered by various countries in Europe, it’s obvious that what’s happening in
the UK has actually worked,” Christine Lagarde said on Thursday at
meetings of global policymakers in Washington.

USD
The cost of living in the U.S. excluding food and fuel rose 0.2 percent in
March for a third month, signalling inflation is starting to firm. The increase
in the core consumer-price index reflected broad-based gains in rents, medical
care, clothing and used vehicles. The advance matched the median forecast of
economists. Including the volatile costs of food and energy, the index also
rose 0.2 percent.
 
A strengthening labour market may be giving workers the confidence to seek
bigger wage concessions, which would prompt companies to raise prices for goods
and services. Federal Reserve policy makers want to see inflation on a
trajectory toward their 2 percent goal as they weigh the timing of their first
interest rate increase since 2006.
 
Estimates for core consumer prices ranged from gains of 0.1 percent to 0.3
percent. On a year-over-year basis, core prices climbed 1.8 percent in March,
the biggest 12-month advance since October, after rising 1.7 percent in
February. The forecast for CPI including all costs ranged from no change to a
0.5 percent increase, with the median at 0.3 percent. Consumer prices dropped
0.1 percent in the 12 months ended March after being little changed in the year
through February.
 
Fed officials are monitoring inflation as they seek reasonable confidence in
the trajectory of price growth toward their 2 percent target. The
policy-setting Federal Open Market Committee was split at its meeting last
month on the timing of lift off. Several participants wanted to normalize
policy starting in June, while others favoured later in the year, according to
minutes of the March 17-18 meeting.
 
Disappointing payrolls data were among weaker-than-forecast economic reports
since then that have cast doubt on expectations that the central bank will
increase borrowing costs in June, making September more likely, according to
economists.
 
The Fed’s preferred measure of price pressures, linked to consumer spending,
climbed by 0.3 percent in February from a year before, the Commerce Department
reported last month. It hasn’t been at the central bank’s 2 percent goal since
April 2012.
 
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