United Kingdom: Inflation stays below the Bank of England’s target in September
Consumer prices increased 0.1% in September compared to the previous month, down from August’s 0.4% growth. September’s rise was largely due to higher prices for clothing and footwear, and furniture, household equipment and maintenance.
Inflation was stable at 1.7% in September, remaining below the Bank of England’s (BoE) 2.0% target and market expectations of 1.8%. Low fuel prices kept a lid on inflation in September. Core inflation—which excludes food and energy costs—rose to 1.7% from 1.5% in August.
Our panelists see inflation staying close to target going forwards, supported by a solid labor market, although, as with other economic indicators, Brexit developments will have a key bearing.