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Inflation in the UK increased to 3 percent in January, surpassing expectations and emphasizing the challenge for the Bank of England because it struggles with permanent prices pressures and weakened economy.
The annual price growth rate was above 2.5 percent recorded in December, and 2.8 percent of the prognosis of economists surveyed by Reuters, the National Statistics Office announced on Wednesday.
In September it was also above a recent low than 1.7 percent.
Boe said this month that the pressures on the price were on the “uneven path”, as it predicts that inflation in the middle of the year would increase to 3.7 percent, fueled by higher global energy costs.
The Central Bank said he expects inflation to return to its goal of 2 percent later.
The data published on Tuesday showed a strong wage growth in the UK, excluding bonuses, increasing at an annual rate of 5.9 percent in three months to December, compared to 5.6 percent in three months to November.
But economic growth was weak, and the official data last week showed a marginal expansion of 0.1 percent in three months to December, after stagnation of the previous quarter.
On Tuesday, Boe Boe’s Governor said that the Central Bank had been able to reduce interest rates three times since last summer due to the fall in inflation and because we “face a weak growth environment in the UK”.
But he added that the expected increase in inflation was one of the “challenges” that was ahead of us, as well as global uncertainty, and reiterated his intention to take over “gradual and careful” approach to reducing interest rates.
This is a development story
