Inflation in United Kingdom
United Kingdom - Inflation (end of period)
Inflation ticks up marginally in February
Consumer prices rose 0.5% in February over the previous month, contrasting January’s 0.8% decline. February’s reading was underpinned by higher prices for food and non-alcoholic beverages; clothing and footwear; and furniture, household equipment and maintenance.
Inflation inched up from 1.8% in January to 1.9% in February but remained marginally below the Bank of England’s (BoE) 2.0% target. Core inflation—which excludes food and energy costs—was also slightly below 2.0%.
Looking ahead, inflation is likely to stay close to the BoE’s target, with the tight labor market providing upward pressure. The outcome of the Brexit process is a key risk to the inflation outlook, as a no-deal Brexit could lead to a sharp currency depreciation and fan price pressures, even in the face of weaker domestic demand.
UK Inflation Forecast
According to the February Inflation Report, the Bank of England sees inflation at 2.0% in Q4 2019 and 2.1% in Q4 2020. FocusEconomics Consensus Forecast panelists expect inflation to average 2.0% in 2019 and 2.0% again in 2020.
United Kingdom - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||2.0||0.5||0.2||1.6||3.0|
5 years of economic forecasts for more than 30 economic indicators.
United Kingdom Inflation (eop) Chart
Source: Office for National Statistics (ONS).
United Kingdom Facts
|Bond Yield||1.15||-3.04 %||Mar 20|
|Exchange Rate||1.32||-0.35 %||Mar 20|
|Stock Market||7,291||-0.26 %||Mar 20|
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March 22, 2019
On 21 March the EU agreed to delay Brexit until 12 April to give the UK parliament more time to coalesce around a way forward.
March 21, 2019
At its meeting ending on 20 March, the Monetary Policy Committee (MPC) of the Bank of England (BoE) voted unanimously to keep the Bank Rate unchanged at 0.75%.
March 20, 2019
Consumer prices rose 0.5% in February over the previous month, contrasting January’s 0.8% decline.
March 19, 2019
In the November-January period, the unemployment rate reached a fresh multi-decade low of 3.9%, while the employment rate rose to a record high.
March 12, 2019
Industrial production rose 0.6% in January over the prior month according to the Office for National Statistics, contrasting December’s 0.5% decline.