In January, consumer prices added 0.1% over the previous month, which came in well below December's 1.0% price rise and in line with market analyst expectations. Nevertheless, as the figure exceeded the 0.2% price drop recorded in the same month last year, annual inflation rose from 3.7% in December to 4.0%, reaching its highest level since November 2008. The moderate monthly increase was influenced by an increase in the standard value added tax (VAT) rate, which rose from 17.5% to 20.0% on 4 January. That said, the most important drivers behind the increase were higher prices for alcoholic beverages and tobacco (+4.6% month-on-month), which were compensated by lower prices for clothing and footwear (-5.9% mom). In its latest inflation report, the Bank of England raised its inflation expectations from 2.8% in November to 4.3%.
United Kingdom Inflation
Inflation rises to highest level in over two years
February 15, 2011
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United Kingdom Economic News
October 21, 2016
Following nearly four months of little or no news regarding formal negotiations with the European Union, in early October, Prime Minister Theresa May finally shed some light on the Brexit timeline and announced that Article 50 of the Lisbon Treaty will likely be triggered before the end of March 2017.
October 19, 2016
In September, jobless claims increased by 700 from the previous month, according to the Office for National Statistics (ONS).
October 18, 2016
In September, consumer prices increased 0.2% from the previous month, which came in below the 0.3% increase seen in the previous month.
October 8, 2016
In August, industrial production contracted 0.4% over the previous month in seasonally-adjusted terms, which contrasted the 0.1% increase recorded in July.
October 3, 2016
In September, the manufacturing sector recovered the ground it had lost after the EU referendum.