UK inflation rate surges to 1.6%
The Consumer Prices Index (CPI) surged to 1.6%, 0.4% more than the previous 1.2% and 0.2% more than forecasted. This figure was the highest since July 2014. The depreciation of the pound seen after the Brexit vote is starting to have a significant impact on the economy, with the imported goods that pushed up the prices.
The Office for National Statistics explained that "the main contributors to the increase in the rate were rises in air fares and the price of food, along with prices for motor fuels, which fell by less than they did a year ago".
CPI index values, 1-month and 12-month rates: December 2015 to December 2016
UK
Index1 (UK, 2015 = 100)
1-month rate
12-month rate
2015
Dec
100.3
0.1
0.2
2016
Jan
99.5
-0.8
0.3
Feb
99.8
0.2
0.3
Mar
100.2
0.4
0.5
Apr
100.2
0.1
0.3
May
100.4
0.2
0.3
Jun
100.6
0.2
0.5
Jul
100.6
-0.1
0.6
Aug
100.9
0.3
0.6
Sep
101.1
0.2
1.0
Oct
101.2
0.1
0.9
Nov
101.4
0.2
1.2
Dec
101.9
0.5
1.6
Source: Office for National Statistics
Notes:
1. From February 2016, CPI and CPIH indices have been re-referenced and published with 2015=100. This does not impact on published inflation rates.
