UK inflation accelerated more-than-expected to a three-month high in October driven by higher clothing and food prices, the Office for National Statistics reported Wednesday.

Consumer prices advanced 0.7 percent on a yearly basis in October, faster than the 0.5 percent increase logged in September. The rate was forecast to rise marginally to 0.6 percent.

Although inflation was the highest in three months, this was well below the Bank of England’s target of 2 percent.

The BoE expects inflation to remain at, or just above 0.5 percent during most of the winter, before rising quite sharply towards the target.

Month-on-month, consumer prices remained flat versus a 0.4 percent rise in September, and the expected drop of 0.1 percent.

Excluding energy, food, alcoholic beverages and tobacco, core inflation increased to 1.5 percent, while the rate was expected to remain unchanged at 1.3 percent.

Data revealed that prices of food prices increased in October from the previous month, but fell in the same period last year, due to higher demand for vegetables and fruits ahead of second lockdown.

Another report from the ONS showed that output prices declined for the eighth consecutive month in October.

Output prices decreased 1.4 percent annually but slower than the 1.7 percent drop seen in September. However, this was faster than economists’ forecast of 0.7 percent fall.

Output prices remained unchanged on month, in contrast to a 0.1 percent drop a month ago and a 0.1 percent rise expected by economists.

Input prices also continued its downward trend in October. Input prices were down 1.3 percent on year following a 2.2 percent decline a month ago. Prices were expected to decrease 2.5 percent.

Month-on-month, input prices gained 0.2 percent after rising 0.3 percent a month ago. Inflation was forecast to slow to 0.1 percent.

The material has been provided by InstaForex Company –

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.