You are here: Home - Uncategorized -

UK inflation climbs to 4%

Written by:

The UK inflation rate rose to 4.0% in January, double the government’s target and up from 3.7% the previous month.

This hike puts further pressure on the Monetary Policy Committee (MPC) to raise interest rates, although they were kept on hold at 0.5% last week.

Last month, consumer price inflation (CPI) reached its highest level since November 2008, largely as a result of the VAT jump from 17.5% to 20%, while oil, commodity and food prices also had an impact.

Meanwhile, inflation measured by the retail price index reached 5.1% last month, up from 4.8% in December.

Bank of England governor Mervyn King will once again be forced to write another letter to the government explaining what remedial action will be taken to bring inflation back to target levels.

Michael Hewson, market analyst at CMC, commented: “UK futures markets are already factoring in two to three 25 basis points rate hikes by year end and a figure anywhere above 4% could well bring forward the date of any potential first hike.”

Related Posts


Tag Box




Financial fitness

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.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
New tenant levels leap 37% in 2010

Demand for rental properties has rocketed in the last year, with the number of new tenants up 37% in 2010,...