United Kingdom Inflation Steady at 2.7% in September


In September, UK's Consumer Prices Index grew by 2.7 percent year-on-year, unchanged from August. The largest upward contribution came from air fares, though this was offset by a downward contribution from petrol and diesel prices.

An upward contribution to inflation from air fares and a counter-balancing downward contribution from the price of motor fuels were the only contributions of note. The contribution from air fares occurred because prices, overall, fell at a slower rate between August and September this year than they did between the same two months a year ago. 

The downward contribution from motor fuels was due to prices at the pump falling slightly between August and September this year compared with a rise in prices between the same two months a year ago. Petrol prices fell by 0.5 pence per litre between August and September this year, to stand at £1.37, compared with a rise of 3.9 pence per litre between the same two months a year ago.

Taking a longer term view, the three main contributors to the 12-month inflation rate in the last five years have been food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; and transport (including motor fuels).

ONS | Nuno Fontes | nuno@tradingeconomics.com
10/15/2013 9:41:07 AM