Markets
U.K. Inflation Improves Slight in December
- U.K. Inflation Improves Slight in December
Inflation rate in the U.K. eased for the first time in six months in December, following pound appreciation.
The consumer prices improved slightly from 3.1 percent in November to 3 percent in December, the Office for National Bureau of Statistics reported.
While the Bank of England predicted that inflation will slow to about 2.4 percent in 2018, the price pressures continued to hurt consumer buying power. However, the rising pound sterling value may partially ease price pressures if sustained.
“Clearly the pound’s weakness over the past 15 months has not been helpful” to the BOE, ex-Goldman Sachs economist Jim O’Neill said on Bloomberg Television. “If it were to rise further, it would make their job easier and importantly, it might help to indirectly stop this squeeze on the U.K. consumer.”