The rate of CPI inflation rose to 2.7% in October of 2012, up from 2.2% the month bebefore.
CPI 2012
CPI long-term
The inflation rate of U.K. was about 2.7% in December of
2012. Historically, from 1989 to 2012, the U.K.
inflation rate averaged 2.81%, reaching an all time high of 8.5% in
April of 1991 and a record low of .5% in May of 2000.
There are few opinions on what causes the inflation. Some
view that inflation is caused when there is too much money in circulation. Some
say that the inflation is purely caused by more demand for goods than can be
met by the available supply. And the last cause can be number of factors,
including increases in workers’ wages, increase in raw material prices, and
increase in import prices.
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