FOREX TradingCharts.com

Financial News: UK Inflation Accelerates More Than Forecast

UK Inflation Accelerates More Than Forecast

11/20/2024 - 03:00:00 (RTTNews)

(RTTNews) - UK consumer price inflation accelerated more than expected in October, lowering the chances of a rate cut at the upcoming monetary policy meeting in December.

The consumer price index rose 2.3 percent on a yearly basis, following September's 1.7 percent increase, which was the lowest since April 2021, the Office for National Statistics reported Wednesday. The rate again exceeded the Bank of England's 2 percent target and also remained above economists' forecast of 2.2 percent.

Core inflation that strips out prices of energy, food, alcohol and tobacco, edged up unexpectedly to 3.3 percent from 3.2 percent in September. The core rate was seen at 3.1 percent.

"While inflation is down considerably from this time last year, the larger than expected uptick in October highlights the continuing price pressures in the economy," British Chambers of Commerce Head of Research David Bharier said.

At the November meeting, the Bank of England had reduced its benchmark rate for the second time this year citing continued progress in disinflation but suggested that further easing is set to be gradual due to the upward impact on inflation from the Autumn budget.

The bank had lowered the Bank Rate by a quarter-point to 4.75 percent this month. The BoE had projected headline CPI inflation to rise to 2.5 percent by December.

The next monetary policy announcement is due on December 19. Policymakers are likely to be more cautious on further easing as inflation moved above the target.

Driven by higher electricity and gas prices, housing and household services provided the largest upward contribution to the annual inflation in October, the ONS said. Meanwhile, the biggest offsetting downward contribution came from recreation and culture.

The annual decline in goods prices slowed to 0.3 percent from 1.4 percent. Meanwhile, services inflation rose to 5.0 percent from 4.9 percent.

On a monthly basis, the CPI climbed 0.6 percent after remaining unchanged in September.

Another data from the statistical office showed that input prices fell 2.3 percent on a yearly basis in October, down from a revised drop of 1.9 percent in September.

Monthly input prices gained only 0.1 percent in October, reversing September's revised fall of 0.5 percent. Prices were expected to climb 0.5 percent.

Factory gate prices were down 0.8 percent in October compared to a revised fall of 0.6 percent a month ago.

Monthly output prices were flat in October after posting a revised decline of 0.4 percent in September. Economists had forecast a 0.1 percent fall.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2024 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Singapore Inflation Data Due On Monday (05 hr(s), 47 min(s), 15 sec(s) ago)
(RTTNews) - Singapore will on Monday release November numbers for consumer prices, highlighting a ...Full Story»

U.S. Consumer Sentiment Improves In Line With Preliminary Estimate In December (13 hr(s), 05 min(s), 15 sec(s) ago)
(RTTNews) - The University of Michigan released a report on Friday showing consumer sentiment in t ...Full Story»

U.S. Consumer Prices Inch Higher In November, Annual Growth Accelerates Slightly Less Than Expected (13 hr(s), 36 min(s), 15 sec(s) ago)
(RTTNews) - Consumer prices in the U.S. crept slightly higher in the month of November, according ...Full Story»

Slovenia Producer Prices Fall At Slower Rate (13 hr(s), 50 min(s), 15 sec(s) ago)
(RTTNews) - Slovenia's producer prices continued their declining trend in November, figures fr ...Full Story»

Croatia Jobless Rate Rises To 5.0% (14 hr(s), 05 min(s), 15 sec(s) ago)
(RTTNews) - Croatia's unemployment rate increased for the second straight month in November, f ...Full Story»

Denmark Economy Grows Less Than Estimated In Q3 (14 hr(s), 23 min(s), 15 sec(s) ago)
(RTTNews) - The Danish economy expanded less than initially estimated in the third quarter, the ...Full Story»

U.S. Consumer Prices Inch Up Slightly Less Than Expected In November (14 hr(s), 38 min(s), 15 sec(s) ago)
(RTTNews) - Consumer prices in the U.S. crept slightly higher in the month of November, according ...Full Story»

Sweden Producer Prices Rise, Retail Sales Growth Remains Stable (14 hr(s), 46 min(s), 15 sec(s) ago)
(RTTNews) - Producer prices in Sweden increased for the first time in three months in November, wh ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Singapore Inflation Data Due On Monday

12/22/2024 - 17:33 PM (RTTNews)
(RTTNews) - Singapore will on Monday release November numbers for consumer prices, highlighting a ...Full Story>>

U.S. Consumer Sentiment Improves In Line With Preliminary Estimate In December

12/20/2024 - 10:15 AM (RTTNews)
(RTTNews) - The University of Michigan released a report on Friday showing consumer sentiment in t ...Full Story>>

U.S. Consumer Prices Inch Higher In November, Annual Growth Accelerates Slightly Less Than Expected

12/20/2024 - 09:44 AM (RTTNews)
(RTTNews) - Consumer prices in the U.S. crept slightly higher in the month of November, according ...Full Story>>

Slovenia Producer Prices Fall At Slower Rate

12/20/2024 - 09:30 AM (RTTNews)
(RTTNews) - Slovenia's producer prices continued their declining trend in November, figures fr ...Full Story>>

Croatia Jobless Rate Rises To 5.0%

12/20/2024 - 09:15 AM (RTTNews)
(RTTNews) - Croatia's unemployment rate increased for the second straight month in November, f ...Full Story>>

Do not sell my personal information

Copyright © 2024. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.