Wonderful Wefinda weekly news (Week ended 14 January 2011)

Base rate kept on hold but mixed messages in the economy
The Bank of England’s monetary policy committee voted this week to keep base rate at 0.5%. However, with inflation at 3.3% and expected to rise in the months ahead some economists are calling for base rates to be increased soon. Whilst this might help savers and act as a slight curb on inflation, an interest rate rise could also slow the economy and send us back towards recession.

Floods lead to concern for commodity prices
The Office of National Statistics reports that UK manufacturers saw commodity prices such as oil and wheat rise by and average of 12.9% in 2010. Whilst much of this rise has yet to be passed on to consumers it is debatable how long manufacturers can continue to carry such a rise particularly in the face of renewed price rises expected this year. The recent floods in Sri Lanka saw up to a fifth of its rice production under threat and will lead to pressure on world markets. In Australia, the floods have shut down many coal mines which will could lead to coal and coke prices soaring worldwide.

Default retirement age to be scrapped
The Government has announced the scrapping of the default retirement age, meaning that firms will no longer be able to force someone to retire when they reach 65. The changes are being phased in this year. Employees who reach the age of 65 between 6 April and the end of September and who receive compulsory retirement notification before the 6 April can still be compulsorily retired. After 5 April, no further notifications can be issued and employers won’t be able to retire anyone else due to age.

Winter flu advice
The Health Protection agency and Chief Medical officer are warning people to continue to be vigilant when it comes to seasonal flu. They are emphasising the importance of basic precautions such as covering your face with a hand when coughing and washing hands regularly. Employers are also reminded that they have a duty of care to staff and should take measures to try and prevent the spread of flu within the workplace. This includes having a policy of encouraging sick employees to stay at home.

So, what do we have to look forward to?
In Parliament on Wednesday there is a 10 minute rule motion on postal marketing and consumer protection. The Treasury select committee on competition and choice in banking grinds on with further hearings on Tuesday and Thursday whilst on Wednesday it looks at the effectiveness of HMRC. Business Innovation & Skills look at rebalancing the economy.

On 18 January we get to find out the latest RPI & CPI figures which will make interesting reading, particularly as they will include the pre-Christmas sales as retailers rushed to beat the VAT rise.

And finally
At Wefinda we like to help you to track down services that will make your business life easier so this latest invention really caught our eye. An inventor in America has made his own iPhone beer cannon. He’s linked an iPhone app to his beer cooler and now at the touch of a button he can choose the beer he wants and the cooler will fire it towards him using a compressed air cannon. If it catches on it may make office cooler gossip a thing of the past.