UK CPI rises above expectations in September, highest in 2 years

The UK consumer prices accelerated on yearly basis in September, coming in at 1% versus August’s +0.6% and outpaced forecasts of a 0.8% reading, the Office for National Statistics (ONS) revealed on Tuesday. The rate in September 2016 was the highest since November 2014.

While the core inflation gauge also edged +1.5% higher in Sept versus 1.3% last. Markets had predicted the core figures to show an increase of +1.4%.

On monthly basis, the UK inflation figures also bettered expectations, rising +0.2% last month, as compared to +0.3% seen previously, and +0.1% forecast.

ONS reports, “The main upward contributors to change in the rate were rising prices for clothing, overnight hotel stays and motor fuels, and prices for gas, which were unchanged, having fallen a year ago. These upward pressures were partially offset by a fall in air fares and food prices.”