United Kingdom Inflation

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United Kingdom: Inflation ticks down in August

September 16, 2014

In August, consumer prices rose 0.4% over the previous month, which contrasted the 0.3% fall recorded in July and marked the highest increase in six months. August’s rise was mainly driven by higher prices for alcohol and tobacco as well as for clothing and footwear.

Annual inflation eased from 1.6% in July to 1.5% in August, which met market expectations. Annual average inflation inched down from July’s 2.0% to 1.9% in August, which is the lowest level since August 2005.

In its latest inflation report from August, the Bank of England projected that inflation would average 1.9% in 2014 and 1.8% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 1.8% in 2014, which is down 0.1 percentage points from last month’s forecast. For 2015, the panel forecasts that inflation will average 2.0%.

Author:, Senior Economist

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United Kingdom Inflation Chart

United Kingdom Inflation August 2014

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

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