Preview: UK Inflation to Ease in November Consumer price inflation in the UK is expected to have slowed down again in November, after it temporarily ticked up the month before on higher transport costs. Inflation rate in the UK has been slowing sharply over the last three years, falling from 5.2% in September 2011 down to 1.3% in October this year. In November, economists expect the headline rate of CPI to have eased back to 1.2%, down from a temporary rise of 1.3% in October, when higher prices of transport and motor fuels pushed the overall index up. The Office for National Statistics (ONS) is releasing fresh data on Tuesday, December 16, at 9:30 AM GMT. The Bank of England (BoE) forecasts the headline CPI to slow even further to 1%, or even below, at some point over the next six months, necessitating an open letter to Chancellor George Osborne. As for the medium-term outlook, the BoE expects the CPI rate to remain at around 1% in the first quarter of next year, before crawling up to 1.1% in the second quarter of 2015. It then estimates inflation at 1.6% in the first quarter of 2016, down from the 1.7% it estimated in August. From the fourth quarter of 2016 onward, the outlook remains broadly unchanged when compared with the previous forecast, with CPI at around 2% in three-years time. read more : forex-tsd/financial-news-analytics/123518-gbpusd-news-28.html#post718803
Posted on: Mon, 15 Dec 2014 18:26:37 +0000
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