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Highlights
- UK inflation eased to 10.1% in January from 10.5% in December.
- However, ONS noted that food inflation remained at a high of 16.7 in January.
- Chancellor Jeremy Hunt noted that while the inflation rates have come down, the fight is far from over.
In what could be a sign of cooling off, UK inflation witnessed a dip for a third consecutive month in January. However, despite the fall, it remains at a 40-year high. Last week, the Bank of England hinted that inflation in the UK is almost 'guaranteed to fall' unless there is any new, unexpected global event.
The inflation eased to 10.1% in January from 10.5% in December. This is significantly lower than the 11.1% recorded in October 2022. The Office for National Statistics (ONS) pointed out that the drop was largely on fuel and restaurants and hotel costs slowing.
However, ONS noted that food inflation remained at a high of 16.7% in January. Chancellor Jeremy Hunt, however, noted that while the inflation rates have come down, the fight is far from over. He added that higher inflation often strangles the growth path and adds to the cost-of-living crisis, and it is, therefore, one must ensure that the UK inflation continues to reduce in the coming months.
Helen Dickinson, chief executive of the British Retail Consortium, noted that the fight is still not over, and the rising prices are still squeezing many households. The cost of food still is high due to the ongoing crisis in Ukraine, pushing the prices higher due to the knock-on effect of high fertiliser and energy prices.
Amid this, let's explore three stocks on which investors can keep a keen eye.
Diversified Energy Company plc (LON: DEC)
Diversified Energy Company plc is primarily in the oil and gas-making business. The DEC on February 15 enjoyed a market cap of £ 897.76 million. The Diversified Energy Company plc shares were seen trading at GBX 105.60 and were down by -0.85% on Wednesday, February 15. The DEC had an EPS (earning per share) of -0.41 and was down by -9.36% and -7.29% on a YTD and one-year basis, respectively.
BAE Systems plc (BA.)
The FTSE-100 BAE Systems plc's market cap stood at £26,468.00 million as of February 15 15. The defence technology firm BA. had an EPS of 0.55 and a turnover (on the book) of £6,102,439.09. The BAE systems had one-year and YTD returns of 45.47% and 1.96%, respectively. The BA. stock on Wednesday was trading at GBX 872.80, which was up by 0.86%.
Standard Chartered plc (LON: STAN)
The FTSE 100-listed Standard Chartered plc's market cap stands at £20,888.51 million as of February 15. STAN stocks on Wednesday were trading at GBX 723.60, up by 0.28%. Standard Chartered stock offered one-year and YTD returns of 31.66% and 16.39%, respectively.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
