United Kingdom Inflation

United Kingdom

United Kingdom: Inflation eases to a record low level in December

January 13, 2015

In December, consumer prices were flat over the previous month, which was up from the 0.3% drop reported in the November. December’s figure was mainly driven by lower prices for gas and electricity,

Annual inflation fell from 1.0% in November to 0.5% in December, which marked the lowest rate on record. December’s figure came in below market expectations, which had inflation falling at 0.7%. Annual average inflation inched down from November’s 1.6% to 1.5% in December, and now stands at its lowest level since March 2005.

In its latest inflation report from November, the Bank of England projected that inflation would average 1.2% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 1.6% in 2015, which is down 0.1 percentage points from last month’s forecast. For 2016, the panel forecasts that inflation will average 1.8%.

Author:, Senior Economist

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United Kingdom Inflation Chart

United Kingdom Inflation December 2014

Note: Annual and monthly variation of consumer price index in %.
Source: Office for National Statistics (ONS) and FocusEconomics calculations.

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