UK Inflation Rate Below BoE’s Target


UK’s inflation rate fell for the first time in more than four years below the Bank of England's target level. The CPI rose by an annual 1.9 percent in January of 2014, down from 2 percent in December.

The fall in the rate resulted from price movements for recreational goods and services, furniture and household goods and alcoholic beverages and tobacco. These were partially offset by price movements for miscellaneous goods and services. Gas and electricity prices made very little contribution to the change in the CPI 12-month rate, with price rises and reductions resulting from the Energy Companies Obligation scheme largely cancelling each other out.

On a monthly basis, prices fell 0.6 percent in January.

The consumer price inflation that includes owner occupiers’ housing costs rose 1.8 percent in the year to January of 2014, down from 1.9 percent in December 2013.

ONS | Joana Taborda | joana.taborda@tradingeconomics.com
2/18/2014 9:44:07 AM