The annual inflation rate in the United Kingdom jumped to 1.8% in January of 2020 from 1.3% in December and above market expectations of 1.6%. It is the highest reading in six months, mainly boosted by prices of transport (1.8% vs 0.7% in December), namely airfares (0.9% vs -8.5%); fuels and lubricants (4.7% vs 1%, the biggest rise since November 2018); housing and utilities (2% vs 0.4%), namely electricity (8.6% vs 3.3%); restaurants and hotels (2.2% vs 1.6%); and miscellaneous goods and services (2.4% vs 2.2%). Also, prices rebounded for clothing and footwear (0.2% vs -0.8%). In contrast, inflation eased for food and non-alcoholic beverages (1.4% vs 1.7%) and was steady for recreation and culture (1.5%). Core inflation which excludes energy, fuel, alcohol and tobacco, rose to 1.6% from 1.4% in December.
Inflation Rate in the United Kingdom averaged 2.55 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. source: Office for National Statistics
Inflation Rate in the United Kingdom is expected to be 1.40 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 1.90 in 12 months time. In the long-term, the United Kingdom Inflation Rate is projected to trend around 2.50 percent in 2021 and 2.30 percent in 2022, according to our econometric models.