🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UK inflation jumps to 1.5 pct in Oct, as expected

Published 11/17/2009, 04:31 AM
Updated 11/17/2009, 04:33 AM

LONDON, Nov 17 (Reuters) - Britain's inflation rate accelerated in October, as expected, after a sharp fall in transport costs last year was not repeated, official data showed on Tuesday.

The Office for National Statistics said consumer price inflation rose to 1.5 percent last month, in line with the consensus forecast, from a five-year low of 1.1 percent in September.

The figures are unlikely to cause undue concern to Bank of England policymakers whose quarterly forecasts last week showed a sharp pick-up in near-term inflation.

Some economists reckon inflation could even hit 3 percent at the start of next year as a temporary cut in value-added tax is reversed.

The ONS said October's pick-up was due to the statistical impact of a record fall in fuel prices in October 2008 not being repeated this year.

The largest upward effect within transport came from fuels and lubricants where prices fell by 0.7 percent on the month in October but fell 6.1 percent last October.

The price of second-hand cars rose at the fastest annual rate on record at 13.2 percent. Air fares also put upward pressure on the index.

Retail Price Inflation, a gauge that includes housing costs and is used as the basis for many wage deals, came in at -0.8 percent from -1.4 percent in September.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.