United Kingdom: Inflation remains stable in December
January 15, 2013
In December, consumer prices increased 0.5% over the previous month. The figure came in above the 0.2% rise recorded in November but matched market expectations. Higher prices for housing and household services, mostly reflecting increases in gas and electricity bills, were the most important drivers behind the monthly inflation figure.
Annual headline inflation remained steady at 2.7% for a third month in a row, which, nevertheless, represents the highest rate since May. In the full year 2012, inflation averaged 2.8%, which was below the 4.5% seen in 2011.
In its latest inflation report from November, the Bank of England expects inflation to average 2.5% in 2013, before moderating to 2.0% in 2014.