skip to main content
Find Insight DIY on
* * *

UK DIY News

Inflation rose by 0.3% in January

Coins and upwards arrow

UK inflation edged up to a 12 month high in January, as a fall in petrol prices eased.

Inflation, as measured by the Consumer Prices Index, rose by 0.3%. It was helped by smaller falls in food and fuel prices than a year ago.

Annual inflation has been below the Bank of England's 2% target for two years, and last year it was zero.

The BoE said earlier this month that it expected inflation to stay below 1% this year.

North Sea oil prices dropped to a 12 year low of $27.10 last month and have almost halved over the past 12 months.

But the Office for National Statistics measure of fuels and lubricants costs was only 7.3% lower than in January 2015, the smallest drop since November 2014.

Continuing low inflation makes the chance of an interest rate rise in the near future unlikely.

Few economists expect the BoE to raise rates before late this year at the earliest, and some analysts see a risk that the BoE could instead have cut to rates below the record low of 0.5% where they have been for almost seven years.

Financial markets do not currently expect interest rates to rise until the end of the decade due to concerns including a global economic slowdown and continuing low oil prices.

Source : BBC News
www.bbc.co.uk/news/business-35586431

16 February 2016

Related News

view more UK DIY News
*

Insight provides a host of information I need on many of our company’s largest customers. I use this information regularly with my team, both at a local level as well as with our other international operations. It’s extremely useful when sharing market intelligence information with our corporate office.

*
Paul Boyce - European CEO, QEP Ltd.
Newsletters

Don't miss out on all the latest, breaking news from the DIY industry