UK September Inflation Rate Steady at Over 2-1/2-Year Low

The annual inflation rate in the United Kingdom was at 1.7 percent in September 2019, unchanged from the previous month and slightly below market expectations of 1.8 percent. It remained the lowest inflation rate since December 2016, amid a slowdown in cost of transport, as fuel prices dropped the most since August 2016.

Year-on-year, food and non-alcoholic beverages inflation was steady (at 1.8 percent); while prices slowed for transport (0.6 percent compared to 1.4 percent in August), mainly due to fuel (-2.1 percent, the biggest fall since August 2016); housing, water, electricity, gas and other fuels (2 percent compared to 2.4 percent); miscellaneous goods and services (1.7 percent compared to 1.8 percent); and alcoholic beverage and tobacco (3 percent compared to 3.3 percent). In addition, cost of clothing and footwear declined 1 percent, after dropping 0.9 percent in August. On the other hand, cost increased further for furniture, household equipment and maintenance (1.9 percent compared to 0.8 percent); recreation and culture (1.4 percent compared to 1.2 percent); restaurants and hotels (3.2 percent compared to 2.8 percent); health (2.6 percent compared to 2.4 percent); communication (4.1 percent compared to 3.6 percent); and education (3.2 percent compared to 3.1 percent).

The consumer prices index including owner occupiers’ housing costs (CPIH) stood at 1.7 percent in September.

The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, went up to 1.7 percent from a near 3-year low of 1.5 percent in August.

On a monthly basis, consumer prices advanced 0.1 percent, easing from a 0.4 percent rise in the prior month and below forecasts of a 0.2 percent gain.

UK September Inflation Rate Steady at Over 2-1/2-Year Low

ONS | Stefanie Moya |
10/16/2019 8:48:58 AM