UK Inflation Rate Eases from 6-Year High in December


The UK consumer price inflation eased to 3 percent in December 2017 from a near six-year high of 3.1 percent in the previous month, as widely expected.

Year-on-year, prices rose at a slower pace for: transport (3.8 percent from 4.5 percent in November), in particular spare parts and accessories (2.7 percent from 3.2 percent) and purchase of second-hand cars (0.5 percent from 0.8 percent); recreation and culture (2.7 percent from 3.1 percent); restaurants and hotels (3.1 percent from 3.2 percent); housing, water, electricity, gas and other fuels (2.3 percent from 2.4 percent); and food and non-alcoholic beverages (3.9 percent from 4.1 percent). Meanwhile, inflation picked up for miscellaneous goods and services (0.8 percent from 0.6 percent in November); clothing and footwear (3.1 percent from 3 percent); furniture, household equipment and maintenance (3.2 percent from 2.8 percent); and alcoholic beverages and tobacco (5.6 percent from 4.5 percent).

The consumer prices index including owner occupiers’ housing costs (CPIH) rose by 2.7 percent in December, compared to 2.8 percent in November.

The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, fell to 2.5 percent in December from a six-year high of 2.7 percent in November.

On a monthly basis, consumer prices rose 0.4 percent after increasing 0.3 percent in November, in line with market forecasts. Prices rose sharply for transport (2.2 percent), furniture, household equipment and maintenance (1.3 percent) and food and non-alcoholic beverages (0.6 percent).

UK Inflation Rate Eases from 6-Year High in December


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
1/16/2018 9:49:58 AM