Inflation Steady Over October
The latest data from the Office for National Statistics showed that UK CPI inflation remained unchanged over October. Headline inflation printed 2.4%, missing analyst expectations of a 2.5% print while core inflation remained unchanged at 1.9%, missing expectations of a 2% reading.
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The stagnation in inflationary momentum last month was due to price declines in food and clothing costs while the price of utility bills and petrol was seen rising. Food prices were the biggest drag on inflation this month with oil and fats falling 6.3% on the previous month while milk, cheese, and eggs were also down 1.4%. On the whole, food and non-alcoholic beverages were down 0.2% on the month while clothing and footwear fell 0.5%.
On the plus side, gas and electricity prices both increased by 2% with liquid fuels soaring higher at 7.2% on the month. Transport costs were also higher by 5.3% on the month, driven by increases in fuel prices.
Wages Hit Highest Levels in Ten Years
This data comes on the back of wage growth data released this week which showed wages rising at 3.2% over the three months to September, marking their fastest pace in ten years and up from 3.1% in the prior quarter. This is now the second consecutive month where wage growth has risen faster than the rate of inflation, which is good news for UK households.
House Prices Rise Again
Data released alongside CPI showed that house prices increased at 3.5% over the year to September, up from the prior 3.1% reading in August. Commenting on the data, the head of inflation at the ONS said:
“Prices paid by consumers continued to rise at a steady rate with falls in food and clothing offset by rising utility bills and petrol, as crude prices continued to rise… House price growth ticked up a little as increases in Wales, Scotland and the Midlands were to some extent offset by falls in central London.”