Three growth shares to buy for January

Highlights

• Inflation levels in the UK may continue to be high for longer than anticipated, according to the chief economist of BoE.
• Threadneedle Street has predicted that the headline inflation, which stood at a record-high level of 10.7% in November, would come down from mid-2023.
• City investors expect BoE to go for a rate hike again in its next meeting in February, raising it to 4%.

Even though wholesale energy prices have been declining over the past few weeks, the UK's inflation levels may continue to be high for longer than anticipated, according to the chief economist of the UK's central bank. While the country is on the verge of a prolonged recession, Threadneedle Street has predicted that the headline inflation, which stood at a record-high level of 10.7% in November, would come down from mid-2023.

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Huw Pill said that the contraction in the UK's economic growth and the significant reduction in European gas prices might aid in reducing the impact of the greatest levels of inflation witnessed in over four decades. Nevertheless, he added that the threats of "self-sustaining momentum" continued to be there, propelled by higher wage demand by employees and companies raising the prices of their goods in line with the soaring inflation levels.

The interest rate was hiked to 3.5% by BoE last month while inflation hit its greatest level since the early 1980s. City investors expect BoE to go for a rate hike again in its next meeting in February, raising it further to 4%. Amid the interest rate hikes, UK investors can keep an eye on growth stocks to strengthen their portfolios. Kalkine Media® here explores the three stocks trading on the London Stock Exchange.

ME Group International plc (LON: MEGP)

The returns given by ME Group International plc, a leading vending machine operator, stood at 86.10% and 8.26% on a one-year and YTD (year to date) basis, respectively, as of 12 January. At around 8:00 AM (GMT), as the market opened, MEGP shares were trading at GBX 120.00. The MEGP’s market cap stood at £453.66 million at the time of writing. Meanwhile, the group's EPS (earning per share) stood at 0.06.

Capricorn Energy plc (LON: CNE)

The returns given by Capricorn Energy plc, which is an FTSE250-listed oil and gas explorer and developer, stood at 27.46% and -6.04% on a one-year and YTD basis, respectively, as of 12 January. At around 8:00 AM (GMT), as the market opened, CNE shares were trading at GBX 246.00, surging by 2.40 points, or 0.99%. The CNE's market cap stood at £767.52 million at the time of writing. Meanwhile, the group's EPS stood at 1.81.

Nanoco Group plc (LON: NANO)

The returns given by Nanoco Group plc, which focuses on producing cadmium-free quantum dots, stood at 105.06% and -6.68% on a one-year and YTD basis, respectively, as of 12 January. At around 8:00 AM (GMT), as the market opened, NANO shares were trading at GBX 40.20. The NANO's market cap stood at £129.62 million at the time of writing. Meanwhile, the group's EPS stood at -0.01.