UK inflation rises to 3% in January

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The UK inflation has risen to 3 percent in January, outlining expectations and highlighting the challenge for the Bank of England because it is overwhelming prices and the weak economy.

The National Statistics Office said on Wednesday that the annual price increase in the forecast for 2.8 percent recorded in December and 2.8 percent recorded in December. It was also above the recent minimum of 1.7 percent in September.

Service inflation, the main system of underlying prices, increased from 5.7 percent in January to 5 percent in December, but was 8.2 percent of the economists’ expectations.

OnS Chief Economist Grant Fitsner says: “After reading this time last year, the cost of food and non -alcohol drinks increased, especially meat, bread and cereal. Private school fees were another reason, because the new VAT rule means that the price has increased by about 13% this month. ”

BOE said this month that the price pressure was “in the way of a riot” because it predicted that inflation was driven by higher global energy consumption, in the middle of the year, will rise to 3.7 percent in the middle of the year. The central bank has said that they were expected to return to 2 percent of its targets after the inflation.

In response to Wednesday’s statistics, Chancellor Rachel Reeves said: “My number one mission is to get more money in the People’s Pocket. We have seen in the wages of the year since the elections that inflation has grown at the fastest rate of the year – on average one thousand £ 1000 a year is worth $ 1000 – but I know that millions of families are still fighting to end. “

Data released on Tuesday showed that the UK’s strong wage increased bonus, excluding the bonus, increased by 5.7 percent in the annual rate within three months, and increased from 3..6 percent in three months.

However, economic growth has weakened, last week, after the previous quarter stagnation of government data, the marginal expansion of 0.1 percent within three months in three months showed.

On Tuesday, Boer Governor Andrew Bailey said the central bank was able to reduce interest rates three times since last summer due to the decline of inflation, and because “we face a weak growth environment in the UK”.

However, he added that the “challenge” for the BOE, as well as global uncertainty, had the expected growth of inflation and reiterated his intention to adopt the “slow and careful” method to reduce interest rates.