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Inflation

United Kingdom Inflation Rate 1989-2018

The UK consumer price inflation eased to 3 percent in December 2017 from a near six-year high of 3.1 percent in the previous month, as widely expected. Prices rose at a softer pace for transport, recreation and culture, housing and utilities, and food and non-alcoholic beverages. Inflation Rate in the United Kingdom averaged 2.58 percent from 1989 until 2017, 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.

Consumer prices index (CPI) is the government's preferred measure of inflation. It is used for international comparison and the government inflation target for the Bank of England Monetary Policy Committee. It is available as an index from January 1997, with estimates back to 1988. It excludes mortgage interest payments and council tax. As of the 2010 budget, CPI as part of the triple-lock, is used to index state pensions in place of RPI.

Why is inflation important?

Keeping a healthy cash flow throughout your life is essential and one of the biggest risks to capital is inflation risk. It is important this is taken into account with our recommendations and considered when discussing your attitude to investment risk within our client meetings.

(Source: Trading Economics)

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Inflation

Consumer Price Index (CPI) The annual inflation rate in the United Kingdom fell to 1.8 percent in January 2019 from 2.1 percent in the previous month and below market expectations of 1.9 percent. It was the lowest inflation rate since January 2017, mostly due to a slowdown in cost of electricity, gas and other fuels. Inflation Rate in the United Kingdom averaged 2.58 percent from 1989 until 2019, 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

Inflation Rate in the United Kingdom is expected to be 1.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, they estimate Inflation Rate in the United Kingdom to stand at 2.00 in 12 months time. In the long-term, the United Kingdom Inflation Rate is projected to trend around 2.00 percent in 2020, according to our econometric models.
What is the Consumer Price Index (CPI) The CPI is a measure of consume…