In August, consumer prices increased 0.5% over the preceding month, which came in above the 0.1% rise seen in July but in line with market expectations. Higher prices for clothing and footwear as well as for transport, amid higher fuel costs and air transport fares, were the main drivers behind the monthly increase. Despite the monthly rise, annual headline inflation inched down from 2.6% in July to 2.5% in August, which was also in line with market expectations. Furthermore, the trend continues to point downwards, with annual average inflation moderating from 3.7% in July to 3.6% in August. Based on figures from its latest inflation report from August, the Bank of England expects inflation to average 2.7% this year, before moderating to 2.1% next year.
United Kingdom Inflation
Inflation resumes downward trend in August
September 18, 2012
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United Kingdom Inflation Chart
Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Office for National Statistics (ONS).
United Kingdom Economic News
October 18, 2016
In September, consumer prices increased 0.2% from the previous month, which came in below the 0.3% increase seen in the previous month.
October 8, 2016
In August, industrial production contracted 0.4% over the previous month in seasonally-adjusted terms, which contrasted the 0.1% increase recorded in July.
October 3, 2016
In September, the manufacturing sector recovered the ground it had lost after the EU referendum.
September 30, 2016
In September, home prices in the United Kingdom rose 0.3% over the previous month, which was below the 0.6% increase seen in August that had marked the highest reading in five months, according to the Nationwide Building Society (NBS).
United Kingdom: BoE keeps the Bank Rate unchanged in September and signals more policy easing later this year
September 15, 2016
At its meeting on 15 September, the Monetary Policy Committee (MPC) of the Bank of England (BoE) voted unanimously to keep the Bank Rate unchanged at 0.25%.