UK Economy - Inflation Rises to 4%

The annual rate of inflation in the UK has edged higher to 4% in the year to December 2023 and there are worries that the widening conflict in the Middle East will bring about another external inflationary shock - making it harder for UK inflation to fall back to target and perhaps delaying cuts in interest rates by the Bank of England.

This Guardian analysis piece looks at how today's news on inflation might muddy the waters in relation to monetary policy, although the consensus is rates are still going to fall throughout 2024, albeit perhaps slightly later in the year and with fewer rate cuts, potentially four rather than five.

Meanwhile in Nigeria ....

Nigerian inflation has risen to nearly 30% in Nigeria, with food prices driving the rise in inflation. Even more remarkably in this context, the central bank hasn't set interest rates since the appointment of a new Governor, Olayemi Cardoso , in September.

Given the circumstances, you would have expected interest rates to rise, and soon.