UK Inflation Increases
UK Inflation Rises to 1.9% up from 1.8% in January and above expectations which were set at a steady 1.8%. Commenting on the report ONS’s Head of Inflation Mike Hardie said:
“The rate of inflation is stable, with a modest rise in food as well as alcohol and tobacco offset by clothing and footwear prices rising by less than they did a year ago.
“While average UK house prices increased over the year, the rate is down from last month, and is at its lowest in almost six years. London property prices continued to fall, seeing their steepest drop since the end of the financial crisis, with Wales, the East Midlands and the West Midlands driving the overall growth.”
The near future might see some further increases but with longer term economic forecasts glum any price increases may be short lived. The BoE has warned that inflation may occur as a result of low productivity, increasing wages and if we avoid a no-deal scenario interest rates could be used to stifle prices. Currently the BoE will have their hands tied, premature moves to a Brexit deal are unlikely so all we can do is sit tight and let the political turmoil continue!