Retail inflation softens to 19-month low of 2.05% in January

The biggest monthly fall for gas prices since the 1980s helped drag down United Kingdom inflation to the lowest level in two years in January as the government's energy price cap came into effect.

The Consumer Price Index inflation rate for rural areas stood at 1.29%, while it was 1.50% in December 2018.

The industrial growth for November was revised downwards to 0.3 per cent from the provisional estimate of 0.5 per cent released last month.

Inflation was pulled lower by a decline in electricity, gas and other fuel prices between December and January, which was partially offset by lower air fares. In its February 7 policy statement, it projected consumer inflation at 3.2-3.4 per cent in the first half of next financial year, beginning April 1.

Last week the BoE said inflation was likely to fall below 2.0 percent in coming months before picking up again.

"The further falling back in inflation facilitates the Bank of England maintaining a "wait and see" approach on interest rates until after the United Kingdom leaves the EU", Howard Archer, chief economic adviser to the EY ITEM Club consultancy, said.

More news: United Kingdom unveils plan to ship new plane service to Pacific
More news: China trade talks resume
More news: Russell Westbrook ties Wilt Chamberlain's triple-double record

The convergence of the two measures, along with recent surveys from the central bank suggesting slowing inflationary expectations among households and industry, will be key for a clearer assessment of policy actions by the Monetary Policy Committee.

Analysts polled by Reuters had forecast January's annual increase in the consumer price index at 2.48 percent. Vegetables recorded a deflation of 13.32 per cent in January as against a decline of 16.14 per cent a month ago, while sugar and confectionery registered 8.16 per cent deflation as against 9.22 per cent deflation a month ago.

Mining sector output contracted by 1 per cent in December as against 1.2 per cent growth in December 2017, the data showed.

Inflation was dragged down by lower energy and fuel prices. The inflation was 5.07 per cent in January 2018. Prices of health related goods increased 8.93% while education related goods rose by 7.99%.

Economists had predicted growth of 2.0 per cent for December, according to a poll by Reuters.

Related Articles

  • The Division 2 Open Beta Accidentally Outed by Massive Entertainment Dev

    The Division 2 Open Beta Accidentally Outed by Massive Entertainment Dev

    Similarly, we can only make an educated guess, based on past events, as to what will be included in the forthcoming open beta. During a livestream , The Division 2 developers let it slip that they were "going to fix" a lot of bugs "for the open beta".
    Google's Pixel 4 will offer improved dual-SIM functionality

    Google's Pixel 4 will offer improved dual-SIM functionality

    For those who want to use dual SIM functionality to juggle a business and personal number, that's a pretty serious setback. Just as interesting, however, is the note that the Pixel 3 does have that as well but is limited to internal testing.
    Million Dollar Lottery Winner Shows Up In 'Scream' Mask To Hide Identity

    Million Dollar Lottery Winner Shows Up In 'Scream' Mask To Hide Identity

    I won!' From the day I found out that I won, I've been sick. 'So I'm looking at things that can turn over the money. Campbell reportedly purchased the ticket for $200 in Jamaican money, and took 54 days to claim the winning ticket.
  • Earth’s Ecosystems at Risk as Insects Dying at Record Rates

    Earth’s Ecosystems at Risk as Insects Dying at Record Rates

    The heavy use of pesticides, climate change and invasive species were also pinpointed as significant causes. 'It is very rapid. The researchers also note this is the first study of its kind to provide a global picture of insect decline.
    Bulldogs host unsafe  Lady Vols

    Bulldogs host unsafe Lady Vols

    MSU opened the fourth going four of five from the floor while UT went cold, hitting just one of three in the opening two minutes. As a result, their entire offense was about trying to push the ball in transition and hoping they could hit some outside shots.
    Cops Say Phone Records Jussie Smollett Provided Isn't Enough To Prove Assault

    Cops Say Phone Records Jussie Smollett Provided Isn't Enough To Prove Assault

    We're inclined to believe what he's selling but for some reason, a vast number of people are casting doubt on what he says happened .
  • Labor backdown on Medivac bill could be coming

    Labor backdown on Medivac bill could be coming

    Scott Morrison is significantly ramping up border security patrols and reopening Christmas Island to guard against a feared influx of asylum-seeker boats.

    Man Utd boss Solskjaer: PSG experience (& Kimpembe not seeing red) was difference

    The Norwegian had won 10 of his 11 games in charge of United before their defeat against PSG . The game was under control. "It has to be one that we're going to learn from".
    Why Kate Middleton had to apologise to BAFTA guests

    Why Kate Middleton had to apologise to BAFTA guests

    Kate Middleton and Prince William pose for a photo with their three children, George (right), Charlotte (middle) and Louis. Prince William wore a traditional black tuxedo but strayed from tradition slightly with a pair of black velvet loafers.
  • Republican leader says Senate will vote on Green New Deal

    Republican leader says Senate will vote on Green New Deal

    Republicans see the proposal as a big liability for Democrats, portraying it as a socialist plot to ban airplanes and cows. Four of the six witnesses stated that they traveled by airplane, the very means of transportation they hope to diminish.

    It’s battle time in the teaser of Akshay Kumar’s ‘Kesari’

    Soon after its release, the post of Khiladi Kumar started getting a lot of positive replies for the first synopsis of Kesari . In the first video, we can see the soldiers storming in and Akki standing there with a blood-tipped sword.
    Jennifer Lopez's Motown tribute was a Grammys 2019 low point

    Jennifer Lopez's Motown tribute was a Grammys 2019 low point

    Lo would be performing the tribute and by the time she took the stage, music fans were waiting to see if she would pull it off. When the Grammys announced that tonight's show would include a tribute to the music of Motown , it was fitting.