Pedestrians go through dignifiedly decorated luxurious shopping at Burlington Arcade in London, Great Britain, on Monday, December 4, 2023, inflation in British stores fell to the 17-month lowest level, when retailers are fighting to attract buyers before the key holiday period. Photographer: Jason Alden/Bloomberg by Getty Images
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According to data published by the National Statistics Office (ONS), the inflation rate in Great Britain increased rapidly to 3%, achieving the above expectations of analysts.
Economists surveyed by Reuters expected a reading of 2.8% in twelve months to January.
The consumer price indicator (CPI) in Great Britain fell to the lower than expected 2.5%in December, and the increase in basic prices also slowed down.
Basic inflation, which excludes more unstable energy, food, alcohol and tobacco, increased by 3.7% in 12 months to January, which increased from 3.2% in the previous month and meant the highest rate since April 2024, ONS said, that the rate increased from 4.4% to 5.0%.
ONS was found on Wednesday that the biggest contribution up to a monthly change in CPI comes from transport, food and non -alcoholic beverages. The biggest contribution down, comes from housing and home services, Noticed in a press release.
Responding to the latest data, the Chancellor of Great Britain Rachel Reeves said that providing economic growth and “gaining more money in people's pockets” was her priority, while considering that “millions of families are still fighting to end the end with the end.”
. British pound Not much changed compared to the dollar after data release, trading at USD 1.2615.
The UK inflation rate reached over three years of the lowest level of 1.7% in September, but monthly prices have increased since the higher fees for fuel costs and fees for services growing than the price of goods.
Earlier in February slow growth and A recent decrease in inflation caused the Bank of England To achieve your first reduction in interest rates this yearLowering its reference rate to 4.5%.
The central bank signaled further finishing of the rate, but noticed that higher global energy costs and regulated price changes It is expected that in the third quarter 2025“Even as the underlying domestic inflationary pressure they should disappear even more.” Boe expects inflation rates Stay back to the goal 2% to 2027..
In addition to the list of price growth prospects, the Central Bank also reduced the Economic Growth Forecast of Britain from 1.5% to 0.75% this year by half.