Inflation in United Kingdom

United Kingdom Inflation | Economic News & Forecasts

United Kingdom - Inflation

Inflation rises in April

Consumer prices rose 0.6% in April over the previous month, up from March’s 0.2% increase. April’s reading was underpinned by higher prices for housing and utilities, and transport.

Inflation increased from 1.9% to 2.1%, moving marginally above the Bank of England’s (BoE) 2.0% target but coming in slightly below market expectations of 2.2%. Core inflation—which excludes food and energy costs—was unchanged at 1.8%. April’s increase was likely driven in large part by the British energy regulator’s decision to increase energy prices by 10% from 1 April.

Looking ahead, while the energy price hike will provide some upward price pressure over the coming months, inflation is expected to remain close to the Bank’s target amid mild economic momentum.

UK Inflation Forecast

The Bank of England revised down its inflation projections in its May Inflation Report, and now sees inflation at 1.6% in Q4 2019 and 2.0% in Q4 2020. FocusEconomics Consensus Forecast panelists expect inflation to average 1.9% in 2019 and 2.0% in 2020.

United Kingdom - Inflation Data

2013  2014  2015  2016  2017  
Inflation Rate (CPI, annual variation in %)2.6  1.5  0.0  0.7  2.7  

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United Kingdom Inflation Chart

United Kingdom Inflation
Note: Annual variation of consumer price index (CPI) in %.
Source: Office for National Statistics (ONS).

United Kingdom Facts

Bond Yield0.84-3.04 %Jun 13
Exchange Rate1.27-0.35 %Jun 13
Stock Market7,369-0.26 %Jun 13

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