As many of you will be aware in the UK, due to the current financial climate inflation has been steadily increasing over the last 12-24 months putting pressure on the Bank of England to increase interest rates. It is still unclear as to whether this will be the case (although it is looking increasingly likely). However, what we do know is, due to current inflation levels and the generous triple-lock State Pension guarantee, those in receipt of their State Pension will see a 3% increase from April 2018.
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? Keep...
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