UK inflation at highest for 2 years | Debt Advice Foundation

UK inflation at highest for 2 years

Inflation was at its highest in December since July 2014

 
Inflation rose to 1.6% between December 2015 and December 2016, a sharp rise when compared with a 1.2% rise between November 2015 and November 2016.

Inflation was at its highest in December since July 2014

 
Inflation rose to 1.6% between December 2015 and December 2016, a sharp rise when compared with a 1.2% rise between November 2015 and November 2016.
 
Inflation is the rate at which the prices of goods and services bought by households rise or fall. A change of 1.6% over a year means that a “typical” basket of goods and services that cost households £100.00 in December 2015 would have cost them £1.60 more in December 2016.
 
The Office for National Statistics said that one of the main contributors to the rate increase was a rise in air fares. In 2016 air prices rose by 49% between November and December compared with a smaller rise of 46% in 2015. 
 
According to the BBC, economic forecasters have predicted that inflation could rise above the Bank's 2% target as a result of the pound's weakness since the Brexit vote.
 
A more detailed explanation on how inflation is calculated can be found below;
 

How is the Consumer Prices Index calculated?

Infographic by Office for National Statistics (ONS)

Helpine Logo
Helpline Callback

If you’re unable to call our free debt helpline number 0800 043 40 50 right now, you can fill in the form below and one of our advisors will call you back at a time of your choosing.

Call for FREE debt advice on


0800 043 40 50

Monday to Friday 8am to 6pm