UK Inflation Rate Rises To Highest Since June 2014

Consumer prices in the United Kingdom rose by 1.8 percent in the year to January 2017, following an 1.6 percent gain in the previous month but below market expectations of 1.9 percent increase. Still, it was the highest inflation rate since June 2014, mainly boosted by rising cost of fuel.

Main upward pressure came from: Transportation (5.7 percent from 3.7 percent in December) boosted by motor fuels (16.8 percent from 10 percent); recreation and culture (0.9 percent, the same as in December); restaurants and hotels (3 percent from 2.8 percent); housing and utilities (0.6 percent from 0.4 percent); and miscellaneous goods and services (0.8 percent from 1 percent).

By contrast, prices of food and non-alcoholic beverages fell 0.5 percent, the smallest drop since July 2014, following a 1.1 percent decline in December.

On a monthly basis, consumer prices went down 0.5 percent after rising by 0.5 percent in December and in line with market consensus. Prices fell sharply for: Clothing and footwear (-4.2 percent); furniture, household equipment and maintenance (-2.5 percent); recreation and culture (-0.7 percent); and transport (-0.6 percent).

The core index which excludes prices of energy, food, alcohol and tobacco increased by 1.6 percent on the year, the same as in December and below market consensus of 1.8 percent gain.

UK Inflation Rate Rises To Highest Since June 2014

ONS | Joana Ferreira |
2/14/2017 9:51:05 AM