In January 2024, the UK's inflation rate remained at 4.0%, staying below the 4.2% market expectation and nearly matching the two-year low from November. It was still twice the Bank of England's aim of 2.0%, though.
London, 14 February 2024
The rate of decreases in housing and utility prices slowed down (to 2.1% from 3.4% in December), mostly because of increases in gas and electricity prices as well as transportation costs (to -0.3% from -1.1%). Conversely, food and non-alcoholic beverages (6.9% vs. 8.0%) and furniture and household products (0.4% vs. 2.5%) had a strong slowdown in inflation.
miscellaneous goods and services was the only category where inflation increased (4.5% vs 4.3%). The yearly core inflation rate, which does not include volatile commodities like food and energy, remained stable at 5.1%, which is just lower than the 5.2% market estimate.
Forecast
In January of this year, the United Kingdom's inflation rate stayed at 4%. By the conclusion of this quarter, the UK's inflation rate is predicted by Trading Economics global macro models and analysts to be 2.70 percent. Their econometric models predict that the United Kingdom's inflation rate will eventually trend at 1.70 percent in 2025.
Source: Trading Economics