london skyline

United Kingdom Inflation September 2018

United Kingdom: 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

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest