It’s probably a good sign for the Bank of England, which has been trying to lower inflation to the target rate of 2% by rising interest rates and increasing the cost of borrowing.
The Office for National Statistics (ONS) reported that in January, the consumer price index (CPI), a gauge of inflation, was 4%.
It is below the expectations of economists, including the Bank of England, and remains unchanged from December.
Economists surveyed by Reuters predicted an increase to 4.2%, compared with the central bank’s prediction of 4.1%.
The cost of used autos and an increase in the energy price cap both contributed to inflationary pressure.
But the CPI stayed unchanged thanks to the first monthly decline in food prices in almost two years.
Between December and January, food prices decreased by 0.4%, meaning that the overall rate of food inflation was 8%. Food inflation peaked at 19.2% in March of less than a year ago, a 45-year high.
According to the ONS, furniture and home products were also seeing price reductions.
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It’s probably a good sign for the Bank of England, which has been trying to lower inflation to the target rate of 2% by rising interest rates and increasing the cost of borrowing.
