United Kingdom Inflation Rate at 13-Month Low in October
In October, UK’s consumer prices index (CPI) grew by 2.2 percent, down from 2.7 percent in September. The largest contributions to the fall in the rate came from the transport (notably motor fuels) and education (tuition fees) sectors.
11/12/2013 10:27:49 AM
The slowdown in inflation came primarily from price movements in two sectors – transport and education. Transport prices fell 0.3 percent, down from +1.1 percent last month, while education cost decelerated to 10.3 percent, down from 21.4 percent in September.
In the transport sector the main downward contribution came from prices for petrol and diesel, with reports of price cuts at many of the major supermarket chains on the back of decreases in wholesale prices. Air fares and prices for second hand cars also contributed to the slowdown in inflation.
Consumer prices of goods slowed to 1.7 percent, from 2.1 percent in the previous month, while services annual inflation was recorded at 2.7 percent, down from 3.4 percent in September.
Prices of fuels and lubricants reported a sharp drop of 4.2 percent, down from 1.6 percent fall last month.
Cost of food and non-alcoholic beverages decelerated to 3.9 percent, down from 4.3 percent a month earlier.
On a monthly basis, prices slowed to 0.1 percent, from 0.4 percent in September.