UK Inflation Rate Edges Up in October

British annual inflation rate accelerated slightly to 1.3 percent in October from 1.2 percent in the previous month. While an increase in the cost of alcoholic beverages and tobacco, recreation and culture drove consumer prices higher; cost of food and motor fuels fell.

Year-on-year, transport prices increased 0.5 percent in October, following a 0.1 percent rise in September. Cost of recreation and culture grew 1 percent, up from 0.7 percent in the previous month and prices of housing, water, electricity and gas edged up by 0.1 percent to 3.2 percent. Prices of alcoholic beverages and tobacco increased at a faster 5.2 percent (4.9 percent in September) and cost of restaurants and hotels went up slightly to 2.5 percent from 2.3 percent a month earlier.

In contrast, prices of food and beverages fell 1.4 percent, the same rate as in September and clothing and footwear cost dropped 0.2 percent.

On a monthly basis, consumer prices rose 0.1 percent after being flat in the previous period. The largest upward contribution came from prices for motor fuels – notably petrol and cost of recreation and culture (up 0.4 percent). The only notable downward contribution came from prices of furniture, household equipment and routine maintenance - overall, fell by 1.1 percent.

Annual core inflation, which strips out cost of energy, food, alcohol and tobacco, was recorded at 1.5 percent, the same rate as in September.

UK Inflation Rate Edges Up in October

ONS | Joana Taborda |
11/18/2014 11:11:34 AM