The consumer price inflation in the UK slowed to 1.3 percent year-on-year in December 2019, the lowest reading since November 2016 and below market consensus of 1.5 percent, as prices rose at a softer pace for restaurants & hotels (1.6 percent vs 2.4 percent), transport (0.7 percent vs 0.9 percent), and food & non-alcoholic beverages (1.7 percent vs 2.1 percent). In addition, clothing & footwear prices dropped 0.8 percent, after being unchanged in November. The annual core inflation rate, which excludes energy, food, alcoholic beverages and tobacco, fell to 1.4 percent, also the lowest in nearly three years and below forecasts of 1.7 percent. Inflation Rate in the United Kingdom averaged 2.55 percent from 1989 until 2019, 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. source: Office for National Statistics
Inflation Rate in the United Kingdom is expected to be 1.40 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 1.90 in 12 months time. In the long-term, the United Kingdom Inflation Rate is projected to trend around 2.30 percent in 2020, according to our econometric models.