Uk Inflation For January Unchanged

last updated on

Uk Inflation For January Unchanged

UK Inflation For January Remains Unchanged At 4.0%

The official data shows that the inflation rate in the United Kingdom during January remained unchanged, with a reading of 4.0%. This was a relief for the UK's Prime Minister and the central bank (BoE) as the national elections are just around the corner.

According to the forecasts, the annual inflation was expected to touch 4.2% in January. However, a reading of 4.0% shows that inflation is still under the central bank's control.

Uk'S Interest Rate At 16-Year High

In October 2022, the UK's consumer price inflation (CPI) jumped to 11.1%. Since then, the inflation print has dropped and eventually touched 4.0% this month.

Several experts believe this downward trend in the UK's CPI will likely continue in the next few months. This will also open the doors to the first rate cut after the long, multi-year rate hike campaign. As things stand right now, the interest rate in the UK is at 16 years high.

After the UK's CPI print, the GBP turned weak against the EUR and the USD as there's now a higher chance of rate cuts. Despite the increased odds, theoretical concerns about animation from the BoE remain.

As per the results, there is a 72% chance that June's meeting will yield the first rate cut. A few days earlier, the odds were only 40%, which suggests the changed landscape.

According to EY ITEM Club's chief advisor, the recent inflation date will reassure that the time for rate cuts is right.

Later today, Andrew Bailey from the Bank of England will speak & and will likely share hints about any monetary policy changes.

If we look at the core inflation without including the energy, food, & and other volatile items, the reading was 5.1% with no change from the last.

However, the services inflation jumped from 6.4% to nearly 6.5%, with a change of +0.1%. Despite the uptick, the jump in services inflation was not as big as the BoE's expectations.

Trending Stories