Annual inflation rate in the United Kingdom slowed sharply to 0.2 percent in August of 2020 from 1 percent in July, compared to forecasts of a flat reading. It is the lowest reading since December of 2015, amid a big fall in prices in restaurants and cafes, arising from the Eat Out to Help Out Scheme (-2.8 percent vs +1.8 percent in July). Other downward contributions came from lower air fares (-20.6 percent vs -1.9 percent) and clothing prices (-1.6 percent vs a flat reading). The largest, partially offsetting, upward contributions came from games, toys and hobbies (3.8 percent vs 1.6 percent); accommodation services (-1.8 percent vs -3.8 percent); road transport services (9.8 percent vs 5 percent) and second-hand cars (5.2 percent vs 2.5 percent). On a monthly basis, consumer prices fell 0.4 percent, the biggest drop since January of 2019.
Inflation Rate in the United Kingdom averaged 2.52 percent from 1989 until 2020, reaching an all time high of 8.50 percent in April of 1991 and a record low of -0.10 percent in April of 2015. This page provides - United Kingdom Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. United Kingdom Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020. source: Office for National Statistics
Inflation Rate in the United Kingdom is expected to be 0.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in the United Kingdom to stand at 1.50 in 12 months time. In the long-term, the United Kingdom Inflation Rate is projected to trend around 1.90 percent in 2021 and 1.70 percent in 2022, according to our econometric models.