Inflation highest since 2014
7th February 2017Inflation has reached its highest rate for two-and-a-half years, mainly as a result of the rising price of fuel, says the Office of National Statistics.
The weak pound is pushing the cost of imports up and is making the price of fuel more expensive. Fuel prices soared in January, rising 16.8 per cent year on year, the fastest increase since 2011.
The latest figures are below expectations of a 1.9 per cent rise but are edging closer to the Bank of England target of 2 per cent.
Earlier this month, the Bank forecasts inflation will rise above 2.7 per cent in a year’s time as Brexit pushes costs of imports higher.
According to the BBC, annual inflation as measured by the Consumer Prices Index (CPI) reached 1.8 per cent last month, the Office for National Statistics (ONS) said, up from a rate of 1.6 per cent in December.
It is the fourth consecutive month that the rate has risen and takes inflation to its highest since June 2014.
With the post-Brexit effect and Article 50 yet to be triggered as well as the adjustments to the dollar following the Trump administration we will wait to see the effects of further rises in inflation in the UK and the shifts in the global economy and impact on currency