The annual inflation rate in the United Kingdom declined to 2.1 percent in December 2018 from 2.3 percent in the previous month, in line with market expectations. It was the lowest inflation rate since January 2017, mostly due to lower cost of petrol and air fares. Inflation Rate in the United Kingdom averaged 2.58 percent from 1989 until 2018, reaching an all time high of 8.50 percent in April of 1991 and a record low of -0.10 percent in April of 2015.
Inflation Rate in the United Kingdom is expected to be 2.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in the United Kingdom to stand at 2.10 in 12 months time. In the long-term, the United Kingdom Inflation Rate is projected to trend around 2.00 percent in 2020, according to our econometric models.