UK CPI edges higher in August, but misses estimates

The UK consumer prices showed no growth on yearly basis in August, staying unchanged at 0.6% seen a month before, although missed forecasts of a 0.7% reading, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge remained muted at 1.3% in August versus 1.3% last, also disappointing market expectations of a +1.4% rise.

On monthly basis, the UK inflation figures nearly missed estimates, rising +0.3% last month, as compared to -0.1% seen previously, and +0.4% forecast.

The ONS reports, “The rate is still relatively low in the historic context although it is above the rates experienced in 2015 and early 2016. The main upward contributors to change in the rate were rising food prices and air fares, and a smaller fall in the price of motor fuels than a year ago. These upward pressures were offset by falls in hotel accommodation prices, in addition to smaller rises in the prices of alcohol, and clothing and footwear than a year ago. “