United Kingdom: Inflation falls further below target in October
November 13, 2019
Consumer prices fell 0.2% in October compared to the prior month, contrasting September’s 0.1% increase. The fall was driven by lower prices for food, and housing and utilities.
Inflation fell to 1.5% from 1.7% in September, moving further below the Bank of England’s (BoE) 2.0% target and undershooting market expectations. Muted inflation was driven in part by low energy prices following changes to the price cap set by the energy regulator. Core inflation—which excludes food and energy costs—was stable at 1.7%.
Author: Oliver Reynolds, Economist