Inflation in United Kingdom

United Kingdom Inflation | Economic News & Forecasts

United Kingdom - Inflation

Inflation comes in at highest level in over four decades October

Inflation came in at 11.1% in October, up from September’s 10.1% and above market expectations. October's result represented the highest inflation rate since 1981. The reading was driven largely by higher regulated energy prices, as Ofgem’s energy price cap rose by 25% from September to October.

Annual average inflation rose to 8.2% in October (September: 7.6%). Meanwhile, core inflation was stable at 6.5%.

Finally, consumer prices rose 1.97% in October over the previous month, picking up from September's 0.50% rise. October's jump marked the highest reading since April.

On the implications of the reading for monetary policy, analysts at Nomura said:

“The outsized rise in CPI inflation and strong momentum in core prices, alongside evidence […] of a tight labour market, supports our view of the Bank of England making another bold move in December. We are looking for a 75bp hike.”

FocusEconomics Consensus Forecast panelists expect inflation to average 6.6% in 2023, which is unchanged from last month’s forecast, and 2.5% in 2024.

United Kingdom - Inflation Data

2015   2016   2017   2018   2019  
Inflation Rate (CPI, annual variation in %)0.0  0.7  2.7  2.5  1.8  

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United Kingdom Inflation Chart

United Kingdom Inflation
Note: Annual variation of consumer price index (CPI) in %.
Source: Office for National Statistics (ONS).

United Kingdom Facts

Value Change Date
Bond Yield0.83-3.04 %Jan 01
Exchange Rate1.33-0.35 %Jan 01

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