Inflation rates in Britain accelerated during the month of December to start a series of rises during this year, according to expectations. This comes in light of the recovery of the economy and the continuing fight against the corona pandemic, along with Britain's exit from the European Union.
The consumer price index in Britain rose by 0.3% in December from the previous reading, which fell by 0.1%, and expectations indicated a rise of 0.2%, while the annual index rose by 0.6% from a previous rise of 0.3%, and expectations indicated a rise of 0.5%.
As for the core CPI, it increased by 0.3% from a previous decline of 0.1%, expectations indicated a rise of 0.1%, while the annual core index increased by 1.4% from 1.1% and expectations of 1.3%.
The temporary retreat of travel restrictions led to an increase in tickets prices, along with a rise in global oil prices, which led to a surge in the price of fuel, clothes and other factors that contributed to high levels of inflation in Britain.
Inflation in Britain has remained below the Bank of England's 2% target since mid-2019, before the Corona pandemic pushed it to near zero as the economy slumped. But inflation is likely to pick up again as the impact of tax cuts on value added and other emergency pandemic measures fades from statistical comparisons, and due to Britain's less open new trade agreements with the European Union.
The pound sterling rose for the second session in a row against the dollar during today's trading, and recorded the highest level since the beginning of the week at 1.3699, after opening today's session at the level of 1.3623, approaching its highest level since May of 2018 at 1.3709.