Investing.com – Consumer price inflation in the U.K. rose more-than-expected in September, matching a record high hit in September 2008, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation accelerated to 5.2% in September from 4.5% in August.
Analysts had expected U.K. consumer prices to rise at a rate of 4.9% in September,
Month-over-month, consumer price inflation rose 0.6%, above expectations for a 0.4% increase.
The rate of inflation was more than double the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by a seasonally adjusted 3.3% in September, up from 3.1% in August and above expectations for a 3.2% increase.
The retail price index rose 5.6% in September, up from 5.2% in the previous month and higher than expectations for a gain of 5.4%.
Following the release of that data, the pound turned lower against the U.S. dollar, with GBP/USD dipping 0.04% to trade at 1.5738.
Meanwhile, European stock markets were sharply lower. The FTSE 100 fell 1.25%, the EURO STOXX 50 dropped 1.3%, France’s CAC 40 tumbled 1.85%, while Germany's DAX retreated 1%.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation accelerated to 5.2% in September from 4.5% in August.
Analysts had expected U.K. consumer prices to rise at a rate of 4.9% in September,
Month-over-month, consumer price inflation rose 0.6%, above expectations for a 0.4% increase.
The rate of inflation was more than double the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by a seasonally adjusted 3.3% in September, up from 3.1% in August and above expectations for a 3.2% increase.
The retail price index rose 5.6% in September, up from 5.2% in the previous month and higher than expectations for a gain of 5.4%.
Following the release of that data, the pound turned lower against the U.S. dollar, with GBP/USD dipping 0.04% to trade at 1.5738.
Meanwhile, European stock markets were sharply lower. The FTSE 100 fell 1.25%, the EURO STOXX 50 dropped 1.3%, France’s CAC 40 tumbled 1.85%, while Germany's DAX retreated 1%.