BUSINESS LIVE: Inflation slows to 4.6%; Experian profits jump; SSE boosts infrastructure investment

Published on: November 15, 2023

LIVE

By Live Commentary

Updated: 07:45 GMT, 15 November 2023

Consumer price inflation slowed to 4.6 per cent in the year to October, lower than forecasts of 4.8 per cent and down from 6.7 per cent in September, fresh data from the Office for National Statistics shows.

The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are Experian, SSE, Reckit, Fuller, Smith & Turner, and Capita. Read the Wednesday 15 November Business Live blog below.

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No more interest rate hikes needed but too soon for cuts

Emma Mogford, fund manager of the Premier Miton Monthly Income fund:

‘Today’s drop in CPI inflation is another data point which supports the idea that rates don’t need to go higher.

‘However, with core inflation still high, I don’t think we should expect a rate cut anytime soon. The fall in UK inflation, in line with other countries, will be positive for UK equities.’

Body Shop sold to private equity in £207m deal

The Body Shop has been sold to private equity for a valuation of £660million less than it was purchased for six years ago.

The bath and body retailer has been bought by Lloyds Pharmacy-owner Aurelius for £207million. This is a bargain price compared to the £870million Brazilian firm Natura & Co paid in 2017.

Although The Body Shop is a staple on the High Street with 250 stores in the UK, it has seen sales fall in recent months.

SSE boosts infrastructure investment

SSE has lifted its capital investment expectations by around £2.5billion to £20.5billion over a five-year programme.

The group said this reflects ‘increasing visibility over regulated networks spend and associated supply chain costs’, with around 90 per cent of the boosted investment plan expected to be invested in electricity networks and renewables.

SSE’s half year earnings came in higher than expected as the British power generator and network operator enjoying a lower than forecast effective rate of tax for the fiscal year.

The company reported adjusted earnings per share of 37 pence, above its forecast of at least 30 pence, and reaffirmed fiscal year 2024 adjusted profit expectations of 150 pence apiece.

Inflation slows to 4.6%

Sterling fell slightly against the dollar after publication of the data which showed key inflation measures watched closely by the BoE also falling by more than expected.

Core inflation, which strips out energy and food prices, fell to 5.7 per cent from 6.1 per cent, while service sector inflation also fell by more than the central bank had expected to 6.6 per cent from 6.9 per cent