UK inflation drops less than expected to 3.2%

Food price rises are slowing but rate cut decision still several months away if figures remain where they are. UK consumer prices index (CPI) inflation slowed less than expected to 3.2% in March, raising the prospect that a rate cut will take longer than predicted. Although the March figure is the smallest monthly inflation rise for two-and-a-half years, it is …

UK inflation falls further than expected in November at 3.9%

‘The Bank of England now certainly faces a less daunting task’ The UK Consumer Prices Index (CPI) has dropped to 3.9% in the year to November 2023, according to data from the Office for National Statistics released today (20 December). The fall defied expectations, as economists had forecast inflation to decrease to 4.4% for the month from 4.6% in October …

State pension set to rise 8.5% as CPI inflation remains ‘steady’

UK inflation remained steady last month as prices rose 6.7% year-on-year meaning pensioners are likely to get a bumper 8.5% increase in their state pension next year under the triple lock policy. The Office for National Statistics (ONS) said on 18 October that prices had risen by 0.5% between August and September, matching market expectations. Core inflation, which excludes energy, …

Bank of England holds rates at 5.25% after inflation falls

MPC in split decision after inflation unexpectedly fell in August The Bank of England (BoE) has paused its hiking cycle and opted to keep interest rates at the current level of 5.25% after inflation unexpectedly fell in August. It was a tight split decision by the Bank, with five members of the Monetary Policy Committee voting to maintain the Bank …

Inflation sees surprise fall to 6.7%

The UK’s headline rate of inflation has nudged down, helped by an easing of food and accommodation prices. UK CPI inflation was reported at 6.7% for August, compared to the 6.8% recorded in July and consensus expectations of an uptick to 7.0%. The ONS data shows an even greater drop in the core inflation reading: annual core CPI (excluding food, …

UK inflation holds at 8.7% after two months of falls

Core CPI rose by 7.1% in the 12 months to May, up from 6.8% in April, and the highest rate since March 1992. CPI inflation was unchanged at 8.7% in May, despite two consecutive months of declining and an expected fall to 8.4%, renewing predictions of a 0.5% Base Rate hike at tomorrow’s MPC meeting. The latest ONS statistics show …