UK Inflation Rate

worldtraveller

The Consumer Prices Index (CPI) rose by 1.6% in the year to December 2016, compared with a 1.2% rise in the year to November.

The rate in December was the highest since July 2014, when it was also 1.6%.

Price movements for the majority of the broad groups of goods and services acted to increase the rate between November 2016 and December 2016.

The main contributors to the increase in the rate were rises in air fares and the price of food, along with prices for motor fuels, which fell by less than they did a year ago.

CPIH (not a National Statistic) rose by 1.7% in the year to December 2016, up from 1.4% in November.

ONS

davomcdave

That's the impact of the drop in the pound.

I think that there's a year to go of direct price rises as a result of the fall.

mayonnaise

Excellent news.
Good news for our waistlines.

Rejoice.

ruggedtoast

Sterling rapidly approaching parity with the euro. Will be chaos when it falls below.

davomcdave

ruggedtoast wrote: »

Sterling rapidly approaching parity with the euro. Will be chaos when it falls below.

Why do you think that? Maybe the chaos mark is .99 or 1.01.

Graham_Devon

Worth remembering that lowering interest rates and stimulating the economy with QE (as happened after the brexit vote) is designed to do this.

So while the vote for Brexit wil have impacted, it's worth remembering what the BOE have done to engineer this sort of response - as it seems to be widely forgotten.

Bob_Bank_Spanker_2

Closer to Carney's 2% target - a good thing, no?

AnotherJoe

ruggedtoast wrote: »

Sterling rapidly approaching parity with the euro. Will be chaos when it falls below.

Well, for a start its just veered upwards,and second there wont be any "chaos" because "1.00" is just a number like 0.99 or 1.01.
Nothing magical happens below 1 any more than it does above 1.

You aren't Tim Farron are you? He was speaking nonsensically just an hour ago
(about staying in the single market - way to go, just like being in the EU but worse.)

ps i see RPI was 2.5% so that's good for all those with NS&I bonds.

A_Medium_Size_Jock

Well with the average wage increase currently running at 2.5% according to the ONS that surely means that on average people are still ahead, yes?

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours

Masomnia

A_Medium_Size_Jock wrote: »

Well with the average wage increase currently running at 2.5% according to the ONS that surely means that on average people are still ahead, yes?

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours

Yes.

I'm pretty sure we get fresh figures tomorrow too.

Jon_B_2

Bob_Bank_Spanker wrote: »

Closer to Carney's 2% target - a good thing, no?

This is just the start. It'll be 3-5% by the end of the year I reckon.