The rate of prices in United Kingdom remained on the same level in January, matching the inflation record tallied last December despite a significant drop on the overall prices of foods as pressure from domestic issues continued to weigh in on the British economy.
According to the figures from the Office for National Statistics, the country’s inflation for January was steady at 3%, missing analysts’ forecast of a slight dip at 2.9%.
The consumer price index reached its highest peak in five years last November when it ended at 3.1% level, buoyed by the slowdown in economic growth in UK.
Based from the experts, domestic cost pressures have produced long term effects to the overall prices in the UK as the British pound suffered a steep decline in the past months due to the aftermath of the controversial Brexit vote.
But with Brexit pressure slowly fading out and sterling starting to catch up with its rivals like the euro and the US dollar, the core inflation could be going down in the next few months.
The Bank of England has already announced its target of 2% inflation in the next two years, faster than its initial goal of reducing overall inflation in three years, now that the British pound has returned back to 1.40-level.
Food prices slid down from 3.4% last December to 3.2% in January while income remained a big concern as squeeze on wages has been extended to a year.