UK Annual Inflation Rate at 20-Month Low in November

The annual inflation rate in the United Kingdom fell to 2.3 percent in November 2018 from 2.4 percent in the previous month, in line with market expectations. It was the lowest inflation rate since March last year, mainly due to a slowdown in cost of transport; food and non-alcoholic beverages and recreation and culture.

Year-on-year, prices eased for transport (4.9 percent from 5.4 percent in October), namely operation of personal transport equipment (6.5 percent from 7.7 percent); food and non-alcoholic beverages (0.5 percent from 0.9 percent); housing, water, electricity, gas and other fuels (2.8 percent from 2.9 percent) and recreation and culture (2.5 percent from 3.2 percent). On the other hand, cost rose faster for restaurants and hotels (2.7 percent from 2.4 percent) and  miscellaneous goods and services (0.4 percent from a flat reading). Additionally, inflation was steady for furniture, household equipment and maintenance (at 0.7 percent, the same as in October) and cost of  clothing and footwear dropped less (-0.8 percent from -1.1 percent).

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

The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, rose by 1.8 percent, slowing from a 1.9 percent gain in October and in line with market consensus.

On a monthly basis, consumer prices advanced 0.2 percent, after rising 0.1 percent in the prior month and matching market forecasts. Prices rebounded for food and non-alcoholic beverages (0.1 percent from -0.2 percent in October); clothing and footwear (1.5 percent from -0.5 percent) and furniture and household equipment (0.2 percent from -0.1 percent). Meanwhile, prices continued to fall for transport (-0.4 percent, the same as in October).

UK Annual Inflation Rate at 20-Month Low in November

ONS | Stefanie Moya |
12/19/2018 10:01:43 AM