Money blog: Aldi tactic 'forces Tesco to pull products from sales campaign' (2024)

An English rosé has been celebrated as one of the 50 best wines in the world.

Chapel Down's Rosé Brut won one of the 50 best in show medals at the Decanter World Wine Awards - the first time a UK sparkling rosé has done so.

The rosé, made in Kent, is a blend of chardonnay, pinot noir, pinot meunier, pinot blanc and early pinot noir.

Josh Donaghay-Spire, head winemaker at Chapel Down, said: "We are over the moon.

"It is recognition of the attention to detail and quality that we put into every bottle."

He put the success down to the cooler maritime climate and chalk soils of Kent, which offered the wine the "freshness and crisp character that can't be made anywhere else".

You can get a bottle for around £37.

If you want to a list of the most affordable rosés out there, check out Money reporter Emily Mee's report here...

More than 30% of UK shoppers have seen a theft take place in a shop in the past year, data from Retail Insight suggests.

A poll of more than 1,000 consumers also found the average shopper had witnessed four instances of theft in stores in London.

According to the Association ofConvenienceStores, there was a 409% increase in shoplifting last year, to 5.6 million incidents.

"There's little doubt that shoplifting poses a challenging and costly issue for retailers, many of whom are already giving away margin to keep the cost of everyday foods as low as possible for customers amidst cost of living pressures," Paul Boyle, chief executive of Retail Insight, said.

A ballot is under way that could see Amazon recognise a trade union in the UK for the first time.

Workers will eventually vote on whether they want the union, GMB, to represent them.

GMB needs 40% of them to vote in its favour for Amazon to recognise it.

If the union succeeds, it would mean Amazon would negotiate with GMB leadership over on terms, pay and conditions for workers.

Ballot papers will be sent out on 3 July, with workplace voting starting on 8 July, lasting for six days.

The result of the ballot is expected on 15 July.

Almost one in five workers have had no change in their pay since the start of the cost of living crisis, new research claims.

Jobs site Indeed said its survey of 2,000 people also found that two in five revealed they were struggling to make ends meet.

One in five said their salary had not changed since 2021, while almost one in seven said their pay had fallen since then.

Jack Kennedy, senior economist at Indeed, said: "After grappling with the cost of living crisis for over two years, it's no surprise that wages are front of mind for voters.

"There's a clear call from the British people for the elected government to further ease financial pressures, and we'd expect this to remain front of mind for the public long after the winning party is decided."

By Daniel Binns, business reporter

Taylor Swift's shows in London will boost the economy by £300m, officials have claimed.

TheUS starwill perform three gigs at London's Wembley Stadium this Friday, Saturday and Sunday - before returning to the venue in August for a further five dates.

The sold-out shows will be attended by a total of nearly 640,000 people.

The Greater London Authority estimates fans will spend an average of £471 a show, with many travelling from around the world or other parts of the country to watch.

The capital's mayorSadiq Khansaid he was "delighted" the 34-year-old was playing more shows in the city than anywhere else in the world during her Eras Tour.

The Bank of England's Monetary Policy Committee was never going to cut interest rates today. Not two weeks before a general election.

Cutting the cost of borrowing would have been perceived as highly political, potentially offering support to the government, even though some Conservative politicians, such as the former business secretary Jacob Rees-Mogg, sought to argue ahead of today's decision that not cutting Bank rate could equally be perceived as "a political decision against the government".

So it was no surprise to see the MPC maintain Bank rate at 5.25% or, indeed, for the composition of the vote, at 7-2, to remain unchanged from last time around, with uber-dove Swati Dhingra and Sir Dave Ramsden, again, outnumbered in voting for Bank rate to be cut to 5%.

The MPC also went out of its way to show how it is finely attuned to criticisms of bias one way or the other.

The minutes note: "The committee noted that the timing of the general election on 4 July was not relevant to its decision at this meeting, which would as usual be made on the basis of what was judged necessary to achieve the 2% inflation target sustainably in the medium term."

Why did the MPC vote to hold?

Leaving aside the politics, there were very good reasons why most of the MPC voted for no change today.

Chief among these was the fact that, although the headline rate of Consumer Prices Inflation in May returned to the Bank's target rate of 2% for the first time since July 2021, services inflation remains uncomfortably high at 5.7%.

That will have raised alarm bells on the MPC about the risk of so-called "second round effects", whereby firms and workers respond to higher prices by themselves seeking to raise their prices or their wages and not least because services make up four-fifths of the UK economy.

The MPC minutes noted today that services inflation was "somewhat higher than projected" when the Bank published its most recent inflation report only last month.

The minutes added: "This strength in part reflected prices that are index-linked or regulated, which are typically changed only annually, and volatile components."

Inflation likely to rise again

The MPC is also very wary of the possibility that inflation is likely to begin creeping higher again later in the year.

That is due to so-called "base effects" - the year-on-year comparison - and the fact that, in the second half of last year, the price of some goods in the inflation basket were falling or, at least, not rising as rapidly as they are expected to in the second half of last year.

A good example of that, which stood out in the inflation figures published on Wednesday, is unleaded petrol - a litre of which cost 144.4p in May last year but which cost 148.8p in May this year.

More broadly, the economy is growing more strongly than the Bank has been expecting, as are several indicators of economic activity, among them spending by households on repair and maintenance of their homes and consumer confidence.

Wage inflation

The other major concern for the MPC is that wage inflation, at 5.9% during the three months to the end of April, remains too high for its liking.

The latest report from the Bank's network of regional agents - whose briefings are closely studied by the MPC's members - suggest that recruitment difficulties are "near to their pre-COVID levels" which represents "a historically high level".

Other survey data has also persuaded the MPC to conclude the labour market remains "a little tighter than official data" suggests.

The minutes highlight concerns that near-term pay growth may moderate by less than the Bank was expecting in its May report.

Consumer-facing businesses, which are most exposed to the National Living Wage, in particular are having to pay more to employees.

That said, a reduction in Bank rate is coming, with the MPC noting: "The restrictive stance of monetary policy is weighing on activity in the real economy, is leading to a looser labour market and is bearing down on inflationary pressures.

"Key indicators of inflation persistence have continued to moderate, although they remain elevated."

When will interest rates be cut?

The timing of that reduction is now going to be more fiercely debated than ever. Yesterday's inflation data, with that unexpectedly strong reading for services inflation, pushed market expectations for the timing of that first cut out from August to September.

Today's minutes, though, have persuaded some market participants to conclude that an August reduction in Bank rate may be back on.

The key line in the minutes that have raised that prospect was that, among some MPC members who voted for no change this month, "the policy decision at this meeting was finely balanced".

So the big takeaway from today's meeting is that the door remains open to an August reduction in Bank rate.

The market was putting the probability of an August rate cut at 30% before the meeting. It is now placing a 60% probability on that.

But an August rate cut is not nailed on - and politics may yet rear its head - and the MPC will be watching closely to how markets react to the election result.

As Julian Howard, chief multi-asset investment strategist at GAM Investments, put it: "A potential Labour landslide could unsettle markets, in particular the currency.

"Sir Keir Starmer has come under pressure in recent days on the issue of tax and spending. Sterling will appreciate neither unfunded spending, nor a heavier tax burden."

Some more reaction to bring you now, with experts at Capital Economics suggesting the "pieces of the puzzle are almost in place" for a rate cut.

It said "several developments implied a rate cut is getting closer", citing the two members who voted to cut rates by 25 percentage points to 5.00% and, interestingly, a lack of "hawkish" rhetoric in the minutes released alongside the decision.

"Despite the recent run of stronger inflation and activity data, the language in today's minutes was not much more hawkish than in May," Capital said.

"The minutes continued to suggest 'indicators of inflation persistence had continued to moderate' and that a range of indicators suggest pay growth had continued to ease.

"As a result, we still think there is a good chance of a rate cut in August and that rates will fall to 3.00% in 2025, rather than to 4.00% as investors expect."

We've been reading over the minutes from today's Monetary Policy Committee meeting - and here's what the governor had to say on the decision...

"It's good news that inflation has returned to our 2% target," Andrew Bailey said, referring to the data released yesterday.

"We need to be sure that inflation will stay low and that's why we've decided to hold rates at 5.25% for now."

Some reaction to bring you now to the Bank of England's decision to hold the interest rate at 5.25%.

Jonathan Bone, lead mortgage adviser atBetter.co.uk, criticises the decision:"Borrowers have waited three long years for inflation to return to the 2% target.

"Now that it's finally happened, the excitement has dampened as underlying price pressures in the economy have not slowed as quickly as expected, and the ongoing election likely hasn't helped either.

He says the Bank of England is "obstinate" and "unwilling to take action despite widespread criticism", adding: "Those with mortgages are desperate for relief."

Meanwhile, Tobias Gruber, chief executiveofMy Community Finance, says the decision means savers have more time to review their options.

He offers some advice to those looking around for savings options: "There are still excellent opportunities available for fixed-rate savings, with some providers offering interest rates of over 5%.

"If you don't need immediate access to your money, locking in a competitive fixed rate now can protect you from future base rate cuts."

The Bank of England's nine-person Monetary Policy Committee again voted 7-2 in favour of holding interest rates at 5.25%.

That's the same split as when the committee last met.

Reacting to the news, our economics and data editor Ed Conway says: "Everyone now is in a kind of holding pattern until August, when the next meeting takes place.

"That is the moment where people think there could be a cut.

"We're going to potentially be waiting until August and maybe even [as far away as] November - it really depends on what happens with the data."

As expected, the Bank of England has held interest rates at 5.25% for the seventh time in a row.

The Monetary Policy Committee's vote in favour of maintaining the 16-year high in rates had been widely expected by economists and financial markets.

What does the decision mean?

This will come as a blow to borrowers, who will continue to pay a high rate on any loans they take out - like mortgages.

It's not bad news for all, however, as higher interest ratesincrease the return on savings.

Mark Hicks, head of Active Savings at investment platform Hargreaves Lansdown, said: "Right now, you can still earn more than 5% on everything from easy access accounts to those fixed for up to two years.

"Unfortunately, most people won't be making anything like this, because high street easy access branch rates are far less generous, and in most cases, they pay less than inflation (currently 2%).

"At times like this it's key to check out the rates from online banks and savings platforms, which tend to pay more than the high street giants."

Check out our 6.36am post for our latest Savings Guide - as Savings Champion founder Anna Bowes gives her top three tips for savers right now.

The average first-time buyer needs a household income of more than £60,000 to get on to the property ladder, according to Zoopla.

It estimated that the typical first-time buyer needs £14,900 more than five years ago and £2,400 more than a year ago - a total of £60,600.

The analysis was based on average asking prices of first-time buyer homes for sale on Zoopla of around £250,000.

Those earning figures are based on having a 20% deposit to hand - it would likely need to be much higher if a first-time buyer did not have so much cash to put down up front.

Startlingly, in London, Zoopla found first-time buyers would need a household income of at least £103,000.

In Wales, they would need £38,800 and in Scotland £31,500, according to the calculations.

Izabella Lubowiecka, senior property researcher at Zoopla, said: "The challenges facing first-time buyers are not the same across the UK.

"Access to homeownership requires lower incomes in much of Wales, northern England and Scotland.

"The greatest challenges are in southern England, especially London where first-time buyers are already buying cheaper homes than the average in an effort to try and improve affordability."