ONS data released data showed that inflation has continued to decline, reaching a level not seen since March 2017. The main causes for the fall were clothing and footwear. Tobacco also made a significant contribution to the drop, because although the government increased tax duty on it in March 2017, it imposed no further rise in March 2018.
Published: 24 April 2018
UK inflation fell unexpectedly to 2.5 percent in the year to March, its lowest level in a year, and down from 2.7 percent in February. The slowdown was largely caused by clothing, tobacco and alcohol prices, which increased more slowly in March than they did a year ago.
Published: 19 April 2018
The drop in inflation revealed by ONS data is welcome news for the UK’s 4.8 million-strong self-employed population. ONS data released showed that inflation fell from 3 per cent in January to 2.7 per cent in February. At the Spring Statement the Chancellor announced that inflation was forecast to hit the target rate of 2 per cent by the end of the year.
Published: 3 April 2018
It could also suggest a quicker return to the Bank of England’s 2 percent target and may relieve some of the pressure for an interest rate hike. Wednesday’s unemployment and average wage data will be hotly anticipated. If wage rises show signs of picking up, we could at least find ourselves at a break even point in terms of living costs.
Published: 24 March 2018
There wasn’t much expectation that the second reading of February inflation in the Eurozone was going to change all that dramatically. But the 0.2 percent fall continues a pattern of declining inflationary pressure begun in November, which is beginning to look like a cause for some concern and must be giving European Central Bank (ECB) policymakers a headache.
Published: 17 March 2018
Inflation’s been a hot topic since the Brexit vote caused a sharp drop in sterling 18 months ago. But logic has always dictated that once the effect of the weaker pound had percolated into the real economy, it should then start to drop out of the year-on-year calculations 12 months later.
Published: 24 January 2018
There is little doubt that December’s fall in inflation is welcome given the pressures on households and stubbornly below inflation wage rises. But it is only a small fall and we’re not out of the woods yet. What remains to be seen is whether inflation has peaked or if there is more in the pipeline.
Published: 23 January 2018
There is little doubt that a fall in inflation is welcome given the pressures on households and anaemic wage growth. What remains to be seen is whether inflation has peaked or if there is more in the pipeline. It had been thought that inflation would peak at 3 percent in October only for the markets to be taken slightly by surprise when it continued to rise in November.
Published: 22 January 2018
In any case, it would have been an easy letter to write. The spike in inflation should be temporary, as the effect of the weaker pound filters through to prices. And the Bank has already responded, with Carney and colleagues raising interest rates last month.
Published: 25 November 2017