Consumer price inflation rose for the first time in 10 months in December, jumping from 3.9 to 4 per cent, fresh data from the Office for National Statistics shows. The rise was a shock against forecasts the rate would ease to 3.8 per cent and will give the Bank of England pause for thought as it considers interest rate cuts this year.
The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are BP, GSK, Haleon, 888, Mulberry, Pearson and Wizz Air. Read the Wednesday 17 January Business Live blog below.
Shock inflation print to ‘knock back expectations of an early interest rate cut’
Neil Birrell, chief investment officer at Premier Miton Investors:
‘Inflation in the UK jumped in December, meaning the annual rate rose to 4%. This is still well below the Bank of England’s forecasts in November but will nonetheless knock back expectations of an early interest rate cut.
‘The picture is still not clear overall, as this set of inflation data follows yesterday’s news that the annual increase in earnings is slowing nicely.
‘All eyes will remain on economic data until there is some certainty that we are heading back to target inflation levels.’
Inflation in shock rise to 4%
Consumer price inflation rose for the first time in 10 months in December, jumping from 3.9 to 4 per cent, fresh data from the Office for National Statistics shows.
The rise was a shock against forecasts the rate would ease to 3.8 per cent and will give the Bank of England pause for thought as it considers interest rate cuts this year.
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BUSINESS LIVE: Inflation rises to 4%; BP confirms Auchincloss as CEO; GSK sells Haleon stake
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