UK Inflation Rate Edges Down to 0.9% in October


British consumer prices rose 0.9 percent in the year to October 2016, compared with a 1 percent growth in the year to September and below market expectations of 1.1 percent gain. Prices for motor fuels, housing and furniture increased while cost of clothing fell.

Main upward pressure came from: Transportation (+2.3 percent from +1.2 percent in September) boosted by motor fuels (+4.7 percent from +1.4 percent); housing and utilities (+0.3 percent from +0.2 percent); and furniture, household equipment and routine maintenance (+0.1 percent from -1.4 percent). Additional gains came from: recreation and culture (+0.2 percent from +0.8 percent in September); restaurants and hotels (+2.6 percent from +2.9 percent); and miscellaneous goods and services (+1.1 percent from +1.3 percent).

By contrast, prices decreased for: Clothing and footwear (-0.7 percent from +1 percent in September); and food and non-alcoholic beverages (-2.4 percent from -2.3 percent the previous month).

On a monthly basis, consumer prices edged up 0.1 percent, following a 0.2 percent growth in September and missing market consensus of 0.3 percent rise.

The core index which excludes prices of energy, food, alcohol and tobacco advanced 1.2 percent on the year, the smallest gain since May.

ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/15/2016 10:08:41 AM