UK consumer price inflation doubled in December on higher transport and recreation costs, data released by the Office for National Statistics showed on Wednesday.

Inflation accelerated to 0.6 percent from 0.3 percent in November. The rate was above economists’ forecast of 0.5 percent.

Month-on-month, consumer prices advanced 0.3 percent, reversing a 0.1 percent drop in November and faster than the expected rate of 0.2 percent.

Excluding energy, food, alcoholic beverages and tobacco, core inflation increased to 1.4 percent from 1.1 percent in November. Core inflation was seen at 1.3 percent.

Costs of transport and recreation and culture advanced 1.9 percent and 2.6 percent, respectively. Food and non-alcoholic beverages prices dropped 1.4 percent and clothing and footwear prices were down 1.8 percent.

At the December monetary policy meeting, policymakers said inflation will rise quite sharply towards the target in the spring, as the VAT cut comes to an end and the large fall in energy prices earlier in 2020 drops out of the annual comparison.

Inflation is likely to rise to almost 2.5 percent in late 2021, Thomas Pugh, an economist at Capital Economics, said. However, economic slack will prevent inflation from spending much time above its 2 percent target in 2022.

Another report from the ONS showed that output prices dropped for the tenth consecutive month in December. However, the pace of decrease was the slowest since March 2020.

Output prices fell 0.4 percent annually, following a 0.6 percent drop logged a month ago. On a monthly basis, output price inflation held steady at 0.3 percent.

Economists had forecast output prices to fall 0.6 percent on year but to rise 0.2 percent on month in December.

At the same time, input price inflation turned positive for the first time since August 2019. Input prices rose 0.2 percent from last year, reversing a 0.3 percent fall in November. But the rate was below economists’ forecast of +1 percent.

On month, input prices moved up 0.8 percent, faster than the 0.4 percent increase in November and the expected 0.7 percent.

The material has been provided by InstaForex Company – www.instaforex.com

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.