UK CPI ticks lower in October, core figures disappoint

The UK consumer prices failed to keep up its upward march and dropped sharply in October, coming in at 0.9% versus September’s +1.0% and missed estimates of a 1.1% reading, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge also dropped in Oct to +1.2 y/y versus 1.5% last. Markets had predicted the core figures to show an increase of +1.4%.

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

ONS reports, “Although the rate was slightly lower than in September 2016, it remained higher than the rates otherwise seen since late 2014. The main downward contributors to the change in the rate were prices for clothing and university tuition fees, which rose by less than they did a year ago, along with falling prices for certain games and toys, overnight hotel stays and non-alcoholic beverages.”