Home » Currency Note » Currency Note » Currency Note GBP » GBP: inflation drops to a two-year low of 1.8%

The biggest monthly drop in the price of gas since the 1980s helped drag inflation down to 1.8% in January – the lowest level in two years. That the cost of things has fallen will be welcome news for British households who have felt the effects of austerity, but it is worth bearing in mind that real wages are still 5% lower than they were in 2008. Other contributors to the drop included lower petrol prices and a drop in the cost of hotel rooms. There are some who believe inflation will continue to drop, which would be even better news for consumers.

A no-deal Brexit is still on the table according to the government, as the ERG refuses to support May’s motion on Brexit tonight. They are unhappy that no deal is implicitly ruled out in the motion, which they believe removes the UK’s negotiating leverage in Brussels. That the UK appears to not have any negotiating leverage anyway is moot in these uncertain times. May history show what happened over the past two years and who is responsible.

Today is a quiet one for UK economic data, but there will no doubt be plenty to talk about as the Commons prepares for another Brexit vote. It only remains for us to wish you a Happy Valentine’s Day.

Find out how we can help you

Let us know a little more about your upcoming currency exchange needs. We aim to take the uncertainty away by providing guidance on which services suit your individual requirements. You can then rest, assured your money is not at the mercy of the currency markets.

Protect against risk

Avoid losing money and protect against currencies moving against you.

Dedicated trader

Dedicated currency trader working with you to get the best value for your money.

Secure and efficient transfers

Secure, quick and efficient transfers. Authorised by the FCA.

  • We handle your data with care and only ever as outlined in our Privacy Policy.

Keep up to date

Get regular, jargon-free currency market updates delivered directly to your inbox.

  • We handle your data with care and only ever as outlined in our Privacy Policy.

Refer a friend or business

Recommend our services to your friends, family or colleagues and earn great rewards.