CPI Remains Subdued, Provides Breathing for.>

UK DATA: CPI Remains Subdued, Provides Breathing Space for BoE

-UK Sept CPI +1.7% y/y, unchanged from August

-UK Sept Core CPI +1.7% y/y vs +1.5% in Aug

-UK Sept RPI +2.4% y/y vs +2.6% y/y in Aug

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Inflation remained subdued in September, falling short of the 

Bloomberg median forecast of 1.8%, providing scope for the Bank of 

England to reduce interest rates should the economy falter later in the 

year. Declining costs for fuels and lubricants shaved 0.06 percentage 

points from the change in annual CPI, with petrol prices slipping by 1p 

per litre last month, compared to a 1.7p rise in September of 2018. Core 

CPI ticked higher, but remained comfortably below the Bank's 2.0% 

target. The outturn matched the forecast of Bank of England staff and 

members of the Bank's Monetary Policy Committee, who discussed the 

prospect of inflation hovering below target "over the remainder of 

2019," at the September rate-setting meeting.