UK Inflation Rate Holds Steady at 0.6% YoY in August


British consumer prices rose 0.6% in the year to August 2016, unchanged from July while markets were expecting a 0.7% gain amid a weaker pound. Transport prices rose further and cost of food fell at a slower pace while lower prices for housing and clothing weighed on inflation.

Compared with the same month a year earlier, prices rose for: Transportation (+1 percent from +0.2 percent in July); recreation and culture (+0.7 percent from +0.6 percent); restaurants and hotels (+2.3 percent from +2.7 percent); miscellaneous goods and services (+0.8 percent from +0.9 percent).

By contrast, downward pressure came from: housing and utilities (-0.1 percent, the same pace as in the previous month); food and non-alcoholic beverages (-2.2 percent from -2.6 percent); clothing and footwear (-1.2 percent from -0.7 percent) and furniture, household equipment and maintenance (-1 percent from -0.8 percent).

On a monthly basis, consumer prices rose 0.3 percent, following a 0.1 percent drop in July.

The core index which excludes prices of energy, food, alcohol and tobacco advanced 1.3 percent on the year.

ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/13/2016 9:14:52 AM