Economic data released today, Wednesday, showed an increase in the rate of inflation in Britain during last January for the first time in six months, which boosts expectations that the Bank of England will cut interest at a time Later this year.
The British National Statistics Office indicated today, Wednesday, that consumer prices increased by 1.8% during last January, compared to the same month last year, which is the highest level since last July, on the back of high energy and car fuel prices and a slowdown in the frequency of airline tickets decline . The core inflation rate that excludes the most volatile food and energy prices during the past month was 1.6%.
For its part, reported, "Bloomberg" news that the current rise in the rate of inflation will turn out to be temporary, as inflation is expected to decline during the second quarter of this year, and will remain below the target of the Bank of England, which is 2% during the next two years.
At the same time, expectations of low inflation will make it easier for the Bank of England to cut rates to stimulate the British economy if the need arises, in light of critical trade talks with the European Union, while UK monetary policy makers are not expected to cut rates at the moment. In light of the low unemployment rate and improved confidence in the British economy since Prime Minister Boris Johnson won in the early general elections held last December.
The rise in the rate of inflation came in January, due to the high prices of gas and electricity compared to the same month last year, which had witnessed the introduction of new official prices for these commodities.
Car fuel prices also increased during the past month by nearly 2%, while the price of plane tickets fell, compared to last year.
