UK inflation hits 1%

Inflation has reached an almost two year high in the UK, following a release of data from the Office for National Statistics. The department reported that the cost of clothing, fuel and hotels were among the leading contributors to the rise in the Consumer Price Index (CPI) that has marginally exceeded forecasts. Apparently, the rise was offset by a fall in food prices, despite the likelihood they will rise in the near future, and so too by cheap air fares. This comes after the Bank of England announced that it is willing to tolerate ‘a bit’ of overshoot in the UK’s 2% annual inflation target. This move upwards, fuelled by the fall in Sterling, represents an expected sustained reversal of the downward trend in annual inflation that has persisted since 2011.