UK inflation lowers to 2.5% in December

Down from 2.6% in November The UK Consumer Prices Index (CPI) dropped to 2.5% in December, below FactSet’s consensus of 2.8% for the month. According to data from the Office for National Statistics today (15 January), the downward trend was driven by restaurants and hotels, with the latter recording a 1.9% decline in prices over the month, as opposed to …

UK inflation jumps to eight-month high of 2.6%

The rise means it is unlikely the Bank of England will cut rates later this week, analysts say. UK inflation jumped to 2.6% in November, its highest level in eight months. The rise in the Consumer Price Index, from 2.3% in the previous month, was due to higher petrol and clothing prices, according to the Office for National Statistics (ONS). …

Inflation rises to 2.3% as energy bills grow

Jump in bills drives slight increase in CPI growth in October, with Bank likely to stick to cautious approach to rate cuts. UK inflation rose slightly more than expected to 2.3% in October on the back of a jump in energy prices.  Consumer Price Index (CPI) growth had slowed to 1.7% the previous month, raising some hopes of quicker than …

Bank of England reduces interest rates to 4.75%

Industry experts predict further reductions in the months ahead but say the Budget may slow the pace of future cuts. The Bank of England’s Monetary Policy Committee has voted 8–1 to reduce Bank Rate from 5% to 4.75%. One member preferred to maintain Bank Rate at 5%. The MPC last reduced interest rates from 5.25% to 5% in August, the …

Below-expected inflation paves the way for two interest rate cuts this year

September marks the first-time inflation has been below the Bank of England’s 2% target since April 2021. CPI inflation has fallen from 2.2% in August to 1.7% in September, below the Bank of England’s 2% target and below economists’ forecasts of 1.9%. After hitting the Bank of England’s 2.0% target in May and June, inflation rose to 2.2% in July …

Bank of England votes 8-1 to hold interest rates at 5%

Many economists predict that a further rate reduction will come at the Committee’s meeting in November. The Bank of England’s Monetary Policy Committee has voted 8-1 to hold Bank Rate at 5%. One member preferred to reduce Bank Rate by 0.25 percentage points, to 4.75%. The MPC reduced interest rates last month from 5.25%, the first cut since March 2020. …