Consumer prices in the United Kingdom dropped 0.8 percent month-over-month in January of 2019, after increasing 0.2 percent in the previous month and compared with market forecasts of a 0.7 percent fall. It was the biggest decline in monthly inflation rate since January 2016, as prices declined for transport (-1.2 percent compared to 0.8 percent in December); and furniture and household equipment (-2.1 percent compared to 1.1 percent). Also, cost of food and non-alcoholic beverages slowed (0.1 percent compared to 0.9 percent) and prices of clothing and footwear fell further (-4.3 percent compared to -1.0 percent). Inflation Rate Mom in the United Kingdom averaged 0.21 percent from 1988 until 2019, reaching an all time high of 3.37 percent in April of 1991 and a record low of -0.94 percent in January of 2000.
Inflation Rate Mom in the United Kingdom is expected to be 0.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate Mom in the United Kingdom to stand at 0.20 in 12 months time. In the long-term, the United Kingdom Inflation Rate MoM is projected to trend around 0.50 percent in 2020, according to our econometric models.