United Kingdom: Inflation drops in October
November 12, 2013
In October, consumer prices expanded 0.1% over the previous month. The print was below both the 0.4% rise observed in September and the 0.3% increase the markets had expected. Higher prices for education as well as for clothing and footwear offset lower prices for health and transport.
Annual inflation dropped from 2.7% in September to 2.2% in October, its lowest rate in more than a year. Meanwhile, annual average inflation was unchanged over the previous month at 2.7%.
In its latest inflation report from August, the Bank of England projects inflation to average 2.9% this year, before moderating to 2.4% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 2.8% in 2013, which is unchanged from last month's forecast. For next year, the panel forecasts inflation to average 2.4%, which is unchanged from last month's forecast.
Author: Dirina Mançellari, Senior Economist