Soft CPI for May shows tariffs not yet overwhelming

The first inflation reading for May should be heartening, if not a little befuddling to policymakers with CPI coming in much softer than expected. May’s reading was, so far, the biggest test about the speed and magnitude to which tariffs are affecting consumer prices, and core goods prices overall showed little signs of firmness. The lack of tariff effects could plausibly reflect the front loading of inventories and attempts to push out price increases for as long as possible while firms wait to see how trade policy shakes out. Though trade rhetoric has de-escalated since Liberation Day, tar...

UK Spending Review: Boost in Public Spending Announced

In the Spending Review, the first multi-year assessment since 2021, Chancellor of the Exchequer Rachel Reeves announced that total departmental budgets for public services are set to grow by 2.3% in real terms. While the Chancellor suggested that the review includes efficiency savings, these may not be adequate to offset higher expenditures, especially in the face of economic shocks. This situation could lead to more constraints on day-to-day spending in other areas or prompt the Chancellor to consider further tax increases in the autumn budget to adhere to her “non-negotiable” fiscal rul...

第 899 条項：歳入拡大の手段か、それとも外国に税制変更を迫るものか