UK Inflation Rate at Record Low


British annual inflation rate eased to 0.3 percent in January of 2015 from 0.5 percent in the previous month, reaching the lowest on record. Falling prices for motor fuels and food were the main contributors to the slowdown.

Year-on-year, the largest downward pressures came from transport prices (-2.8 percent), food and non-alcoholic beverages (-2.5 percent) and miscellaneous goods and services (-0.4 percent). Prices of recreation and culture decelerated (0.1 percent) while housing and utilities prices rose 1 percent.

Upward pressures came from furniture and household equipment (0.8 percent), clothing and footwear (1.4 percent), alcoholic beverages and tobacco (3.3 percent) and education (10 percent).

On a monthly basis, consumer prices fell 0.9 percent in January, the largest monthly fall since January of 2001. Main downward contributions came from transport prices (- 2.0 percent). The average petrol price fell by 8.5p per litre and the average diesel price fell by 7.3p to 115.6p. Cost of food and non-alcoholic beverages fell by 0.7 percent, mostly due to milk and fruits and recreation and culture prices fell by 0.9 percent. 

ONS | Joana Taborda | joana.taborda@tradingeconomics.com
2/17/2015 9:53:17 AM