(MENAFN) According to official figures released by the Office for National Statistics (ONS), the rate of inflation in the UK has held steady at 4 percent, defying expectations of a rise as forecasted by economists.
The consumer price index (CPI), a widely used measure of inflation, remained unchanged at 4 percent in January, maintaining the same level recorded in December. This outcome contrasts with projections from various economists, including those at the Bank of England, who anticipated a slight increase in inflation.
Economists surveyed by a UK news agency had predicted a rise in the CPI to 4.2 percent, while the Bank of England had forecasted a slightly lower rate of 4.1 percent.
Despite expectations of upward pressure on inflation due to factors such as the energy price cap and increasing costs of second-hand cars, the CPI remained stable. Notably, a decrease in food prices for the first time in over two years contributed to the overall static inflation rate.
The decline in food prices, with a 0.4 percent drop from December to January, played a significant role in offsetting inflationary pressures in other sectors of the economy.
Despite this recent decline, food inflation remains relatively high at 8 percent, although it is notably lower compared to March of the previous year when it reached a 45-year high of 19.2 percent.
These fluctuations in food prices, along with other economic indicators, continue to shape the overall inflationary landscape in the UK, influencing consumer spending patterns and policy decisions by monetary authorities.
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