Inflation in United Kingdom
United Kingdom - Inflation (end of period)
Inflation falls back in September
Consumer prices rose 0.1% in September over the previous month, down from August’s 0.7% rise. September’s figure was underpinned by higher prices for clothing and footwear; and education, which were partially offset by lower prices for food and non-alcoholic beverages; and transport.
Inflation in September fell to 2.4% from 2.7% in August, moving back towards the Bank of England’s (BoE) 2.0% target and undershooting analysts’ expectations of a decline to 2.6%. Core inflation—which excludes food and energy costs—also decreased. September’s figure suggests that August’s surprise uptick in inflation was simply noise, and not the start of a more sustained upturn in price pressures.
Looking ahead, the general trend for inflation is likely to be downward, as external factors which have generated price pressures in recent months—such as higher fuel prices and sterling weakness—fade. However, rising domestic cost pressures due to limited economic slack will likely slow inflation’s return to the BoE’s target.
UK Inflation Forecast
According to the August Inflation Report, the Bank of England sees inflation dipping to 2.3% in Q4 2018 and 2.2% in Q4 2019. Met the why particular Consensus Forecast panelists expect inflation to average 2.1% in 2019 and 2.0% in 2020.
United Kingdom - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||2.0||0.5||0.2||1.6||3.0|
5 years of economic forecasts for more than 30 economic indicators.
United Kingdom Inflation (eop) Chart
Source: Office for National Statistics (ONS).
United Kingdom Facts
|Bond Yield||1.18||-3.04 %||Dec 11|
|Exchange Rate||1.26||-0.35 %||Dec 11|
|Stock Market||6,722||-0.26 %||Dec 11|
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December 11, 2018
According to monthly GDP data released by the Office for National Statistics (ONS), economic activity rose 0.1% in October over the prior month in seasonally-adjusted terms, up from September’s flat reading.
December 11, 2018
Industrial production decreased 0.6% in October over the prior month according to the Office for National Statistics, down from September’s flat reading.
December 5, 2018
Growth in the UK services sector declined notably in November, with the IHS Markit/CIPS UK services Purchasing Managers’ Index (PMI) droppng from 52.2 in October to 50.4, markedly undershooting analysts’ expectations.
November 30, 2018
According to the Nationwide Building Society (NBS), house prices in the United Kingdom increased 0.3% in November compared to the previous month in seasonally adjusted terms, up from October’s flat reading.
November 29, 2018
The GfK consumer confidence indicator fell from minus 11 points in October to minus 13 points in November.