Throughout this article, the recent unexpected changes various UK inflation levels are summarized. More specifically, the CPI rose 1.9% year-on-year, after a rise of 1.8% from January of this year. Given that the inflation rate was expected to remain at its previous level, the article speculates that February's food, alcohol, and tobacco price hikes contributed to this unexpected increase. Core inflation rate was shown to slow to 1.8% from 1.9 the moth prior, which was also not anticipated. The article also mentions that the UK house price inflation decreased to 1.7%, making it the weakest rate since June 2013.
While this article does not explore possible causes and effects in detail, the unexpected nature of these statistics still fell within acceptable ranges. These general overall price level increases have unsurprisingly led to decreased sales of the affected products. Specifically regarding food, a no-deal Brexit’s possible effects on perishable goods will most likely include another price hike. It will certainly be interesting to see how these nations and their economies will continue to change within the next coming months, for a variety of reasons.
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