Market of the borough of fruit and vegetable stands on August 27, 2024 in London, United Kingdom. Borough Market is a retail food market and a producer market in Southwark. It is one of the largest and oldest food markets in London, with a market on the site going up at least in the 12th century.
Mike Kemp | In pictures | Getty images
The UK inflation rate increased sharply to 3% in January, which was higher than analysts’ expectations, according to data published by The Office For National Statistics (ONS) on Wednesday.
The economists interviewed by Reuters expected a reading of 2.8% in the twelve months until January.
The consumer price index (IPC) of Great Britain fell to a level less than 2.5% in December, the growth in basic price also slowing down.
Central inflation, which excludes the more volatile prices of energy, food, alcohol and tobacco, increased by 3.7% in the 12 months until January, which was up 3 , 2% the previous month. In particular, the annual rate of basic services increased from 4.4% to 5.0%, according to the ONS.
“Inflation has increased sharply this month at its highest annual rate since March of last year. It was the lowest decline in January since 2020, “said Grant Fitzner on Wednesday, the chief economist of the ONS.
“After the fall of this time last year, the cost of food and non -alcoholic drinks increased, especially meat, bread and cereals. [a sales tax] The rules meant that prices increased by almost 13% this month, “he said, In comments on the social media platform X.
Responding to the latest data, the British Chancellor Rachel Reeves said that the supply of economic growth and “to get more money in the pockets of people” were her priorities, while recognizing that “millions of families still have to badly to reach both ends “.
THE British book was not changed compared to the dollar after the data press release, trading at $ 1,2615.
Slow growth
The last seap of the ICC inflation was not surprising, but it was bigger than everyone planned, Ruth Gregory, deputy chief economist in the United Kingdom in Capital Economics, noted on Wednesday.
“It is not a secret for anyone that the increase in energy prices will push the inflation of the IPC over 3% in the next 7 months. We will doubt that this will prevent the bank from further reducing Rate. -It declared in comments by email.
“The risk is that the increase in inflation turns out to be more persistent and the rates are reduced more slowly than expected, or not as far,” added Gregory.
