United Kingdom Inflation

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United Kingdom: Inflation inches up in October

November 18, 2014

In October, consumer prices rose 0.1% over the previous month, which was slightly up from the flat reading observed in the previous month. October’s figure was mainly driven by higher prices for transport as well as for recreation and culture, which offset lower prices for furniture and household goods as well as for clothing and footwear.

Annual inflation inched up from 1.2% in September to 1.3% in October, thus breaking a chain of three consecutive drops. October’s figure came in slightly above market expectations, which had the inflation remaining at 1.2%. Annual average inflation inched down from September’s 1.8% to 1.7% in October, and now stands at its lowest level since July 2005.

In its latest inflation report from November, the Bank of England projected that inflation would average 1.5% in 2014 and 1.2% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 1.6% in 2014, which is down 0.1 percentage points from last month’s forecast. For 2015, the panel forecasts that inflation will average 1.8%, which is also down 0.1 percentage points from last month’s estimate.

Author:, Senior Economist

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United Kingdom Inflation Chart

United Kingdom Inflation October 2014 0

Note: Annual and monthly variation of consumer price index in %.
Source: Office for National Statistics (ONS) and FocusEconomics calculations.

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