Home Business NewsEconomic News UK inflation rate dipped to 0.9 per cent in October

UK inflation rate dipped to 0.9 per cent in October

by LLB Reporter
15th Nov 16 10:25 am

New figures show

The Consumer Prices Index, the benchmark that measures inflation in the UK, fell to 0.9 per cent last month from one per cent in September.

According to data from the Office for National Statistics, prices for goods leaving factories rose by 2.1 per cent, faster than expected and the biggest increase since April 2012.

“After initially pushing up the prices of raw materials, the recent fall in the value of the pound is now starting to boost the price of goods leaving factories as well,” ONS statistician Mike Prestwood said.

“However, aside from fuel, there is no clear evidence that these pressures have so far fed through to the prices in shops,” he said.

The Retail Prices Index (RPI), on the other hand, was unchanged from September at two per cent.

Chris Williamson, chief economist at IHS Markit said: “It’s therefore likely to be only a matter of time before price hikes in retailers’ supply chains start feeding through to the customer, as retailers seek to protect margins,” he said.

“The concern is that consumers are driving the economy at the moment, and higher inflation is starting to eat into people’s spending power, subduing consumer spending.”

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