Latest News

UK inflation rate unexpectedly holds at 4% in January

0

UK inflation rate unexpectedly holds in January in relief for BoE By Reuters

Breaking News

‘;

Economic Indicators

Published Feb 14, 2024 07:03
Updated Feb 14, 2024 07:35

© Reuters. Road construction workers carry out work outside the Bank of England in the City of London financial district in London, Britain, February 13, 2024. REUTERS/Isabel Infantes/File Photo

LONDON (Reuters) -British consumer price inflation unexpectedly held steady at an annual rate of 4.0% in January, unchanged from December, the Office for National Statistics said on Wednesday in a boost for the Bank of England.

Economists polled by Reuters had forecast an increase to 4.2%. Inflation is expected to fall further in the coming months.

Core inflation, which excludes volatile food, energy, alcohol and tobacco prices, was also unchanged at 5.1%.

But services inflation – an indicator of domestic price pressures which is closely watched by the BoE as it considers when to start cutting interest rates – rose to 6.5% from 6.4% in December.

The BoE fears rapid wage growth – which makes up much of the inflation rate in the services sector – could add more inflationary pressure across the economy.

Data published on Tuesday showed regular wages rose by an annual 6.2% in the last three months of 2023, the slowest increase in over a year but about double the pace the BoE views as consistent with getting inflation back sustainably to 2%.

“Inflation never falls in a perfect straight line, but the plan is working, we have made huge progress in bringing inflation down from 11%, and the Bank of England forecast that it will fall to around 2% in a matter of months,” British finance minister Jeremy Hunt said.

Prices for food and non-alcoholic drinks were 6.9% higher in January than a year earlier, down from December’s 8.0% rise.

Sterling weakened against the dollar and the euro immediately after the inflation data was published.

Wednesday’s stable British inflation data followed a higher-than-expected increase in price growth in the United States announced on Tuesday.

UK inflation rate unexpectedly holds in January in relief for BoE

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Stocks extend slide; dollar rides Treasury yields higher

Previous article

Pound Sterling Dips Against Euro and Dollar After Inflation Undershoot

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News