UK Factory Prices Up By More Than 20%

British consumer prices rose last month at the fastest pace since June 2014 and are set to rise further, propelled by higher global oil prices and the Brexit-fuelled fall in the pound, official data showed on Tuesday.

Consumer prices increased by 1.8 percent compared with a year earlier, picking up from 1.6 percent in December, and prices paid by factories jumped by more than 20 percent.

The Bank of England expects inflation to approach 2.7 percent by the end of the year while many economists say it will go above 3 percent, putting to the test the BoE’s decision to keep interest rates at a fraction above zero.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.