In­fla­tion due to reach 2% with a fourth month of price growth

Belfast Telegraph - Business Telegraph - - Analysis & Company Report - BY BEN WOODS

IN­FLA­TION is fore­cast to come in just shy of the Bank of Eng­land’s 2% tar­get when of­fi­cial fig­ures are re­leased to­day.

The Con­sumer Price In­dex (CPI) mea­sure of in­fla­tion is ex­pected to hit 1.9% in Jan­uary, as ris­ing food and fuel prices pushes the cost of liv­ing be­yond 1.6% in De­cem­ber.

The move would see CPI reach its high­est level since June 2014 and mark its fourth con­sec­u­tive month of price growth.

How­ever, Alan Clarke, head of Euro­pean fixed in­come strat­egy at Sco­tia­bank, said a jump in petrol prices could be enough to push CPI to 2% in Jan­uary.

Data re­leased by the RAC at the be­gin­ning of Fe­bru­ary showed fuel prices reached a two-year high last month, with petrol and diesel in­creas­ing by an av­er­age of 2p a litre at the pumps.

Bal­loon­ing im­port prices trig­gered by the Brexit-hit pound are also ex­pected to bump up prices as com­pa­nies pass on their soar­ing costs to con­sumers. In­fla­tion last reached 2% in De­cem­ber 2013.

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