UK Inflation Remained at 3% in January

UK inflation stuck at its highest level for almost six years last month, continuing the squeeze on household budgets.

The consumer prices index (CPI) held steady at 3% in January for the second month running, according to the Office for National Statistics, confounding economists’ expectations that the rate would fall to 2.9% as the effects of the post-EU referendum drop in the pound begin to fade.



The reading comes after the Bank of England stoked speculation about a rise in interest rates from as early as May by suggesting last week that it would need to increase the cost of borrowing somewhat earlier and to a greater extent than previously expected. The figures show CPI sticking stubbornly above the Bank’s target rate of 2% set by the government.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza