Uk Inflation Rate

UK inflation unexpectedly jumps to 3%, reaching a 10-month high in Jan

Services inflation - a key gauge of price pressures for the central bank - stood at 5.0 per cent in January compared with 4.4 per cent in December, the ONS said

Bank of England cuts rates to 4.5%, sees higher inflation, weaker growth

Bank of England Governor Andrew Bailey said the BoE would be "monitoring the UK economy and global developments very closely and taking a gradual and careful approach to reducing rates further"

UK inflation unexpectedly eases in Dec, could reduce pressure in bond mkts

Inflation in the UK unexpectedly fell in December, a move that will likely fuel pressure on the Bank of England to cut interest rates again next month. The Office for National Statistics said Wednesday that inflation, as measured by the consumer prices index, was 2.5% in the year to December, largely as a result of easing price pressures in the services sector, which accounts for around 80% of the British economy. That was down from 2.6% the previous month. Economists had expected no change in the annual rate. Though inflation has fallen, it remains above the Bank of England's target of 2%. If the Bank of England decides to cut its main interest rate from 4.75%, it could well ease the pressure in British government bond markets, which have been volatile in recent weeks. The uptick in the interest rate investors are charging the British government to lend money over 10 years hit a 16-year high in recent days, piling pressure on Treasury chief Rachel Reeves to cut spending or raise

MPC minutes: Das urges focus on restoring inflation-growth balance

Policy priority should be on restoring the inflation-growth balance, said Shaktikanta Das, former Reserve Bank governor, while voting for a status quo on the short-term lending rate earlier this month. Das, and three other members of the rate-setting panel -- Monetary Policy Committee -- voted in favour of keeping the repo rate at 6.25 per cent, while the other two members favoured reduction in the rate. In its December bi-monthly monetary policy, the Reserve Bank of India (RBI) kept repo rate unchanged but cut the cash reserve ratio that banks are required to park with the central bank, as it did a balancing act between inflation management and supporting economic growth. With India's GDP seeing a sharper-than-anticipated dip in the July-September period to 5.4 per cent -- its slowest pace in seven quarters -- inflation on the uptick and rupee under pressure, the RBI had few choices to make. "The policy priority at this critical juncture has to be on restoring the inflation growth

UK inflation rises by 2.3% in October, again more than BOE's expectation

The increase was the biggest month-to-month rise in the annual CPI rate since October 2022

UK inflation rises 2.2%, remains slightly less than expected in July

When the BoE cut interest rates from a 16-year high of 5.25 per cent at the start of this month, it said May and June's 2 per cent inflation readings probably marked a low point for inflation

UK faces fiscal hole if Labour govt grants above-inflation pay awards

Independent pay review bodies that represent more than 1.8 million teachers and National Health Service workers have recommended pay increases of about 5.5%, according to the Times

UK inflation stays at 2% target in June, leaving rate cut on 'knife edge'

Inflation in the UK held steady at the Bank of England's target rate of 2% in the year to June, official figures showed Wednesday, in a development that could be enough for policymakers to cut borrowing costs next month. The Office for National Statistics said the largest upward contribution to the annualized inflation rate came from restaurants and hotels, with some economists attributing the increases to Taylor Swift's tour of the U.K. The biggest downward contribution came from clothing and footwear, with widespread sales during the month. The flat reading compared to June a year ago was a tad higher than expected. Most economists had anticipated a modest decline to 1.9%. The last time inflation was at 2% was in July 2021 before prices started to shoot up, first as a result of supply chain issues during the coronavirus pandemic and then because of Russia's invasion of Ukraine, which pushed up energy costs. Financial markets think it's going to be a close call as to whether the B

BoE may keep interest rate at 16-yr high of 5.25% despite inflation fall

Any hopes the governing Conservative Party may have of the Bank of England cutting its main interest rate from a 16-year high of 5.25 per cent Thursday are expected to be dashed even though inflation in the UK has fallen to its target rate for the first time in nearly three years. Official figures on Wednesday showed that inflation, as measured by the consumer prices index, fell to 2 per cent in the year to May from 2.3 per cent the month before, with food prices providing the biggest downward contribution. That's the first time since July 2021 that inflation has been at the bank's target. Despite the welcome decline, some policymakers on the bank's Monetary Policy Committee appear to be still concerned over the scale of price increases in the crucial services sector and the pace of wage increases, which raise the risks of an inflation rebound if interest rates are cut too soon. That is why an interest rate cut tomorrow is still very unlikely, said Luke Bartholomew, deputy chief ..

High cost of living bites UK. Many believe election won't change anything

Dominic Watters watches his gas and electricity metre like a hawk. He topped it up a few days ago, but now there's just 1.85 pounds (USD 2.40) of credit left. That may determine what kind of dinner he and his teen daughter get tonight, he says. Watters, a campaigner for better access to nutritious food, is a single dad in Canterbury in southern England who relies on government welfare. He knows microwave meals don't compare to home-cooked dinners, but sometimes he simply cannot afford to use the gas stove or oven. It's become more and more of a struggle, especially for single parents on benefits, he said. It leaves you feeling stranded. It doesn't allow you enough to pay for fresh fruit and vegetables, and also to pay for the gas and electric to cook the food. Since calling a general election for July 4, British Prime Minister Rishi Sunak has been at pains to repeat a key message on the campaign trail: The economy is turning a corner. Inflation is down. Things are looking up. That'

UK inflation falls to 2.3%, lowest in 3 years but still above BoE's target

Inflation in the UK fell sharply to its lowest level in nearly three years in April on the back of big declines in domestic bills, official figures showed on Wednesday. The Office for National Statistics said inflation, as measured by the consumer prices index, fell to 2.3 per cent in the year to April, down from 3.2 per cent in March. That is the lowest level since July 2021 when the global economy was still being held back by the coronavirus pandemic. The fall also takes inflation nearer to the Bank of England's target rate of 2 per cent and is likely to pile pressure on its nine-member rate-setting panel to cut interest rates from the current 16-year high of 5.25 per cent. The next rate meeting is on June 20 and many economists think the bank will cut borrowing costs. However, others think that ongoing concerns on the panel over the scale of price rises in the crucial services sector and the pace of wage increases, which raise the risks of an inflation rebound if interest rates a

With inflation falling fast, will Bank of England quickly cut rates?

Much of the drop in headline consumer price inflation - from a peak of 11.1 per cent a year and a half ago - is due to falling energy prices which are beyond the BoE's control

BoE likely to move closer to first rate cut since 2020 as inflation falls

The big question for investors is whether the BoE suggests that a cut could come in June - when the European Central Bank has already signalled it will reduce borrowing costs

Bank of England's rate cut plan set to differ from Federal Reserve's

Ahead of Thursday's decision, Governor Andrew Bailey has distanced Britain from resurgent consumer price pressures in the US, pointing to strong evidence of UK inflation receding

UK retail sales stagnate in March despite easing inflation, shows govt data

Friday's figures contrasted with some business surveys that showed a pick-up in retail sales in March

UK inflation steady at 4% in Jan as lower food prices offset energy costs

Inflation in the U.K. held steady at 4% in January as lower food prices helped offset an increase in energy costs, official figures showed Wednesday. The reading was better than expected as most economists expected inflation to rise modestly to around 4.2%. The Office for National Statistics said the monthly drop in food prices of 0.4% was the first since September 2021. Still, inflation remains double the Bank of England's target rate of 2%. The Bank of England has managed to get inflation down from a four-decade high of more than 11%, by raising its main interest rate aggressively from near zero to 5.25%. It has held the rate there since August and there are hopes that cuts may soon be on the agenda. Inflation was first stoked by supply chain issues during the coronavirus pandemic and then Russia's full-scale invasion of Ukraine, which pushed up food and energy costs. While the interest rate increases have helped in the battle against inflation, the squeeze on consumer spending

UK inflation rate rises to 4% in December for first time in 10 month

Wednesday's figures showed that core inflation - which excludes volatile food, energy, alcohol and tobacco prices - was 5.1% in December, the same rate as November

Big UK inflation drop bolsters bets on Bank of England cuts early next year

The annual rate of increase in consumer prices dropped to 3.9% from 4.6% in October, pushed down in part by cheaper petrol, for its lowest reading since September 2021

UK inflation falls by more than anticipated to 2-year low of 3.9% in Nov

Inflation in the UK as measured by the consumer prices index eased back to its lowest level in more than two years, official figures showed Wednesday, in a development that is likely to bolster speculation that the Bank of England may start cutting interest rates sooner than expected. The Office for National Statistics said inflation dropped to 3.9 per cent in the year to November, its lowest level since September 2021, from 4.6 per cent the previous month. That decline was bigger than anticipated in financial markets. The agency said the biggest driver for the fall was a decrease in fuel prices after an increase at the same time last year. Food price inflation also contributed to the decline. Last week, the Bank of England left its main interest rate at a 15-year high of 5.25 per cent, where it has stood since August following the end of nearly two years of hikes. Bank Gov. Andrew Bailey said interest rate policy would likely have to remain restrictive for an extended period of ...

UK businesses grow for first time in three months, but high rates weigh

Britain's economy has suffered from the highest inflation rate among big, rich countries and gross domestic product failed to grow in the third quarter