UK Inflation Rate Below Forecasts at 2.4%


Annual inflation rate in the United Kingdom was flat at 2.4 percent in October of 2018, the same as in September but below market expectations of 2.5 percent. Prices slowed for transport and food but rose faster for housing and utilities and recreation and culture.

Year-on-year, prices rose at a slower pace for transport (5.4 percent vs 5.6 percent in September), namely transportation services (3.1 percent vs 4.2 percent); restaurants and hotes (2.4 percent vs 2.5 percent); and food and non-alcoholic beverages (0.9 percent vs 1.5 percent, the lowest since February of 2017). Also, prices declined more for clothing and footwear (-1.1 percent compared to -0.4 percent) and were unchanged for miscellaneous goods and services (vs -0.3 percent). On the other hand, inflation accelerated for recreation and culture (3.2 percent vs 3 percent); housing, water, electricity, gas and other fuels (2.9 percent vs 2.7 percent), namely gas (7.6 percent vs 5.5 percent); and furniture, household equipment and maintenance (0.7 percent vs 0.5 percent). 

The consumer prices index including owner occupiers’ housing costs (CPIH) rose by 2.2 percent in October, the same as in September. 

The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, was flat at 1.9 percent, the same as in September and in line with market expectations.

On a monthly basis, consumer prices edged up 0.1 percent, the same as in September and below forecasts of 0.2 percent. Prices fell for transport (-0.4 percent) and food and non-alcoholic beverages (-0.2 percent) but rose for housing and utilities (0.6 percent) and education (2.1 percent).

UK Inflation Rate Below Forecasts at 2.4%


ONS | Joana Taborda | joana.taborda@tradingeconomics.com
11/14/2018 9:57:41 AM