UK September Inflation Rate at Over 5-Year High

Consumer prices in the United Kingdom rose by 3 percent in the year to September 2017, as widely expected, following a 2.9 percent gain in the previous month. It was the highest inflation rate since April 2012, mainly due to rising prices of food, transport and leisure activities.

Year-on-year, prices rose further for: Food and non-alcoholic beverages (3 percent from 2.1 percent in August); transport (4.2 percent from 3.2 percent), in particular fuels and lubricants (6.1 percent from 5.1 percent); and recreation and culture (2.5 percent from 1.8 percent). Meanwhile, inflation slowed for housing, water, electricity, gas and other fuels (2.1 percent from 2.2 percent in August), restaurants and hotels (3.1 percent from 3.5 percent); clothing and footwear (3.3 percent from 4.6 percent); furniture, household equipment and maintenance (4 percent from 4.2 percent); miscellaneous goods and services (1.4 percent from 1.9 percent); alcoholic beverages and tobacco (4.3 percent from 4.5 percent); health (2.4 percent from 2.6 percent); communication (2 percent from 2.2 percent) and education (2.9 percent from 4.3 percent).

The consumer prices index including owner occupiers’ housing costs (CPIH) rose by 2.8 percent in September, up from 2.7 percent in August.

The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, stood at 2.7 percent in September, unchanged from the previous month's five-year high and in line with market consensus.

On a monthly basis, consumer prices rose 0.3 percent after increasing 0.6 percent in August and in line with market forecast. Prices rose sharply for clothing and footwear (3.9 percent) and fuels and lubricants (2.1 percent).

UK September Inflation Rate at Over 5-Year High

ONS | Joana Ferreira |
10/17/2017 9:00:15 AM