Daily Business Live

Inflation hits 9.1% | Springfield deal | JD Sports soars


7am: Inflation up

Petrol price

UK inflation rose to 9.1% in May, the highest rate in 40 years, according to new figures from the Office for National Statistics.

Chancellor of the Exchequer, Rishi Sunak said:  “I know that people are worried about the rising cost of living, which is why we have taken targeted action to help families, getting £1,200 to the eight million most vulnerable households. 

Rachel Reeves, Labour’s Shadow Chancellor of the Exchequer, said: “Over the last decade, Tory mismanagement of our economy has meant living standards and real wages have failed to grow.

“We need more than sticking plasters to get us back on course – we need a stronger, and more secure economy.”

The Bank of England has warned inflation is on track to reach 11% later this year amid soaring gas and electricity prices.

Union blames ‘corporate profiteering’

7am: Springfield acquisition

Springfield Properties has agreed to acquire the Scottish housebuilding business of Mactaggart & Mickel Group in a deal worth £46.3 million.

Full story here

7am: JD Sports Fashion profits soar

High street leisurewear company JD Sport Fashion said pre-tax profits before exceptionals in the year to 29 January shot up to £947.2 million against £421.3m last time. A total dividend of 0.35p is proposed (2021: 0.29p).

Helen Ashton, interim chair, said: “This was another period of outstanding progress with the Group delivering a record headline profit before tax and exceptional items … more than double the previous record of £438.8 million set in the period to 1 February 2020, which was the last completed financial year prior to the COVID-19 pandemic.

“This result demonstrates our capacity for growth in both existing and new markets, and the strength of our global proposition and consumer engagement in store and online.”

Global markets

Wall Street stocks rallied yesterday, making up some ground on recent losses ahead of today’s testimony by Fed Chair Jerome Powell before Congress. It is anticipated that he will outlay the central bank’s strategy to tackle inflation.

The Dow Jones advanced 2.15%, the S&P 500 was stronger, up 2.45%, whilst the Nasdaq climbed 2.51%.

In Asia, this morning, though, Japan’s Nikkei drifted 0.08% lower whilst Hong Kong’s Hang Seng fell 1.24% and the Shanghai Composite dipped down 0.31%.

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