UK official annual inflation falls to 1.9%

With inflation low and British unemployment not yet below 7.0 per cent, the Bank of England is likely to keep interest rate at a record-low 0.50 per cent.

Britain's 12-month inflation slowed to 1.9 per cent in January, the lowest level for more than four years, official data shows.

In December, it had stood at 2.0 per cent, the Bank of England's target rate.

With inflation low and British unemployment not yet below 7.0 per cent, the Bank of England is likely to keep its main interest rate at a record-low level of 0.50 per cent this year, according to economists.

Britain is a member of the European Union but not of the eurozone, so retains responsibility for its monetary policy, and although the central bank has a high degree of independence it answers in the last resort to the government.

On a month-on-month basis, the Consumer Prices Index (CPI) fell 0.6 per cent in January, the Office for National Statistics added in a statement.


1 min read

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Source: AAP


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