UK Inflation Falls Below 2 Percent Target

The UK’s inflation rate, as measured by the Consumer Prices Index, fell to 2% in December, down from 2.1% the month before.

It is the first time inflation has been at or below the government-set target of 2% since November 2009.

The Office for National Statistics said the fall was caused by slower increases in the prices of food.

Inflation as measured by the Retail Prices Index (RPI) rose to 2.7% from 2.6% in November.

The ONS said the rise in prices of both food and non-alcoholic drinks was the smallest it had been since 2006.

Phil Gooding from the ONS told the BBC that a slowdown in the increase of fruit prices, particularly bananas and grapes, as well as meat prices helped to drive the fall in the inflation rate.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza