The UK CPI remained unchanged from the previous month in September while consumer prices rose 3.0% y/y. The inflation rate in October pared September’s reading and remained at the highest level since April 2012.
The inflation rate for food and non-alcoholic beverages continued to increase to 4.1%, the highest since September 2013. Rising food and, to a lesser extent, recreational goods prices provided the largest upward contributions to inflation growth rate on monthly basis October 2017.
Rising food prices were largely compensated by falling fuel and furniture prices, along with owner occupiers’ housing costs, which remained unchanged on a month-to-month basis in October.
With the inflation rate at 3.0% y/y in October, this is what both markets and the Bank of England consider a peak in inflation, although rising oil prices might pass through into the inflation rate in coming months as well.
The transport and food and non-alcoholic drink prices have been important factors in driving the year-to-year changes in inflation already.
The core inflation though remained steady, rising 2.7% y/y in October, unchanged from September.
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