CPI Drops to 1.8%, Below Target

  • UK inflation hits two-year low in January
  • CPI 12-month rate fell to 1.8%
  • Below Bank of England’s target of 2%
  • RPI decreased to 2.5%
  • Largest downward contribution from electricity, gas and other fuels
  • Offset by air fares and ferry ticket prices
  • Shop price inflation increased to 0.4%
  • Fourth consecutive month of price increases

The UK’s Consumer Prices Index (CPI) fell to a two-year low of 1.8% in January, dropping from 2.1% in December 2018, according to the Office for National Statistics (ONS). This is below the Bank of England’s target of 2%. The Retail Prices Index (RPI) also decreased to 2.5%, down from 2.7% in December. Cheaper gas, electricity, and petrol contributed to the decline, partially offset by slower airfare drops and rising ferry ticket prices. Shop price inflation increased to 0.4% for the fourth consecutive month, marking the highest rate since April 2013.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about inflation rates, citing sources such as the Office for National Statistics (ONS) and the Bank of England. It presents relevant data and explanations from experts without any apparent bias or personal perspective.
Noise Level: 5
Noise Justification: The article provides relevant information about inflation rates and their contributing factors but lacks a deeper analysis or exploration of potential consequences or long-term trends.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses inflation rates and their impact on consumer prices, which can affect consumer spending and overall economic activity. This can influence interest rates set by the Bank of England and may have an impact on financial markets.
Financial Rating Justification: This article is relevant to financial topics as it discusses inflation rates and their effects on consumer prices, which can impact consumer behavior and potentially lead to changes in interest rates set by central banks. It also mentions shop price inflation, which can affect businesses’ profitability and consumer spending.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There are no extreme events mentioned in the article.

Reported publicly: www.retailsector.co.uk