Is Inflation in the Matrix? U.K. Holds Steady at 4%

The Matrix of Inflation

Hold on to your red pills folks because U.K. inflation is holding steady at 4% year on year. The matrix of rising prices for furniture and household goods food and non alcoholic beverages is keeping us firmly trapped in the world of expensive living.

Negative Territory Strikes Back

After December's surprise increase the headline consumer price index has returned to negative territory with a fall of 0.6%. It seems we're in for another rollercoaster ride folks. Buckle up!

Economists Get Waking Up Call

Economists polled by Reuters got a rude awakening as their consensus forecast of 4.2% year on year for January and 0.3% for the month proved to be as reliable as a blue pill. Looks like we're in for a reality check Neo.

Office for National Statistics Drops the Knowledge

"The largest downward contribution came from furniture and household goods and food and non alcoholic beverages," says the Office for National Statistics. Looks like Morpheus needs to find a better source for his red leather coat.

Core CPI Plays Hide and Seek

The closely watched core CPI figure which excludes volatile items came in at an annual 5.1% falling short of the consensus estimate. Looks like the elusive Mr. Anderson is still playing hard to get.

"The Plan is Working," says Finance Minister

While inflation may not be bending to our will like a spoon in the Matrix U.K. Finance Minister Jeremy Hunt insists that "the plan is working". Don't worry folks we'll soon be dodging bullets in slow motion. Just give it a few more months.