Sarah Davidson

January 19, 2016

Consumer price inflation rose by 0.2% in the year to December 2015, compared with a 0.1% rise in the year to November 2015, figures from the Office for National Statistics show.

Although this is the first month since January 2015 for which the rate has exceeded 0.1%, this continues the trend since early 2015 of the rate being very close to zero.

ONS head of CPI James Tucker said: “Today’s small rise in CPI was mainly down to air fares and motor fuels, partially offset by falls in alcohol and food prices.

“While this modest rise takes CPI to its highest level for 11 months, it is still at historically low levels.”

Calum Bennie, savings expert at Scottish Friendly, said: “While we have inched a small step further away from no-flation, we are still some way off the 2% target that the Bank of England is trying to achieve.

“As a result we are still likely to be waiting for some time before an interest rate rise is seriously considered, let alone implemented.

“If the cost of oil continues to drive down prices at the pumps and supermarkets continue their fight for market share with cheaper food, we can expect inflation to be hovering at this level for a while longer.”

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