The UK’s Consumer Price Index rose 20 basis points above expectations to 5.4% in the 12 months to December 2021, according to the Office for National Statistics, reaching its highest level since March 1992.
The largest contributors to the 12-month uptick came from housing and household services, and transport, which rose by 1.31 and 1.29 percentage points respectively. On a monthly basis, CPI rose by 0.5% between November and December, compared to a monthly rise of 0.3% in December's data. Alan Custis, managing director and UK equity portfolio manager at Lazard Asset Management, said the view that the current high readings are transitory "is starting to sound a bit hollow". "With the employment data from yesterday proving to be surprisingly strong, wage growth seems to be being baked ...
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