You are here: Home - Investing - Experienced Investor - News -

UK inflation falls to fresh record low in January

Written by: Scott Sinclair
Inflation fell to 0.3% in January, the lowest level ever recorded, as price growth continued to slump on the back of falling oil prices.

UK Consumer Price Index (CPI) inflation fell from 0.5 per cent in December to 0.3 per cent in January, slightly below the consensus forecast of a drop to 0.4 per cent.

December’s reading represented the joint-lowest level since the CPI index was established in 1989, with today’s reading marking the first time this measure of inflation has fallen below 0.5 per cent .

Falling prices for motor fuels and food were the main contributors to the latest slowdown, according to the Office for National Statistics.

The Retail Price Index (RPI) measure of inflation, meanwhile, rose by 1.1 per cent in the year ending January 2015, down from 1.6 per cent in December 2014.

Last week, the Bank of England warned the UK was sliding towards its first period of negative inflation in more than 50 years.

Governor Mark Carney said: “[Inflation] will likely fall further, potentially turn negative in the spring, and be close to zero for the remainder of the year.”

The Bank is predicting a sharper upwards recovery in the inflation rate, and still believes the measure will reach its 2 per cent target on a two-year time horizon.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week