United Kingdom: Inflation edges down in August
September 17, 2013
In August, consumer prices rose 0.4% over the previous month, which came in above the flat reading tallied in July. The figure, however, undershot market expectations of a 0.5% increase. The reading was mostly the result of a rise in prices for clothing and footwear as well as transport.
Despite the monthly increase, annual inflation edged down from 2.8% in July to 2.7% in August. Meanwhile, annual average inflation remained stable over previous month at 2.7% in August.
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 2.7% in 2013, which is unchanged from last month's forecast. For next year, the panel forecasts inflation to average 2.4%.
Author: Dirina Mançellari, Senior Economist