17 January 2024

For the first time since February 2023, inflation has risen once again. The Office for National Statistics data series puts CPI inflation at 4%.

This is a 0.1 percentage point change from last month’s figures. While this is not a huge change, it may have some impact on the Bank of England’s Monetary Policy Committee’s decision to increase or lower the bank rate. The bank rate is next due to be reviewed on 1 February 2024.

This may also be disappointing news for any business looking to use the December figures of inflation in determining January pay awards. Does this indicate the levelling off of inflation at roughly 4% per year, or can the Bank of England get this back down to their targeted 2%?

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