Investing.com - Consumer price inflation in the U.K. slowed to the lowest level since September 2012 last month, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price accelerated at a seasonally adjusted 2.2% in October, down from 2.7% in September.
Analysts had expected consumer price inflation to rise 2.5% last month.
Month-over-month, consumer price inflation increased by 0.1% in October, below expectations for a 0.3% rise.
The rate of inflation remains above the Bank of England’s 2.0% target, but the Bank of England will not be obliged to write to the Chancellor of the Exchequer, as the inflation rate is less than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 1.7% last month, the lowest since September 2009 and slowing from 2.2% in September.
Analysts had expected core consumer price inflation to rise 2% last month.
The retail price index rose 2.6% in October, below forecasts for a 3% increase, after rising 3.2% in September.
The data also showed that the house prices index climbed 3.8% last month, below expectations for a 4.1% gain and accelerating from a 3.7% increase in September.
Following the release of that data, the pound added to sharp losses against the U.S. dollar, with GBP/USD tumbling 0.77% to trade at 1.5866.
Meanwhile, European stock markets remained lower. London’s FTSE 100 fell 0.35%, the EURO STOXX 50 dipped 0.4%, France’s CAC 40 inched down 0.3%, while Germany's DAX slumped 0.25%.
In a report, the U.K. Office for National Statistics said the rate of consumer price accelerated at a seasonally adjusted 2.2% in October, down from 2.7% in September.
Analysts had expected consumer price inflation to rise 2.5% last month.
Month-over-month, consumer price inflation increased by 0.1% in October, below expectations for a 0.3% rise.
The rate of inflation remains above the Bank of England’s 2.0% target, but the Bank of England will not be obliged to write to the Chancellor of the Exchequer, as the inflation rate is less than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 1.7% last month, the lowest since September 2009 and slowing from 2.2% in September.
Analysts had expected core consumer price inflation to rise 2% last month.
The retail price index rose 2.6% in October, below forecasts for a 3% increase, after rising 3.2% in September.
The data also showed that the house prices index climbed 3.8% last month, below expectations for a 4.1% gain and accelerating from a 3.7% increase in September.
Following the release of that data, the pound added to sharp losses against the U.S. dollar, with GBP/USD tumbling 0.77% to trade at 1.5866.
Meanwhile, European stock markets remained lower. London’s FTSE 100 fell 0.35%, the EURO STOXX 50 dipped 0.4%, France’s CAC 40 inched down 0.3%, while Germany's DAX slumped 0.25%.