MNI 5 THINGS: CPI Steadies Above BOE Target; Core Below 2%

By Jamie Satchi and Laurie Laird

     LONDON (MNI) - The following are the key points from inflation data

published Wednesday by the Office for National Statistics.

     - Consumer prices steadied at 2.4%, undershooting Bank of England

expectations, but remaining above the Bank's target for the twentieth straight

month.

     - House prices accelerated modestly, despite continued weakness in London.

Residential property costs fell by 0.3% in September, the third consecutive fall

and the longest stretch of declines since the three months to October 2009.

     - Fuel prices surged by an annual rate of 11.9%, but contributed just 0.03

percentage points to the change in the CPI, as prices were also rising in the

same month of 2017. The weight of fuel in the CPI basket has been reduced

slightly over the past year, which may limit its effect on broader price

changes.

     - Clothing and footwear prices fell by 1.1% over October 2017, the biggest

annual decline since August 2016. Despite this, there was no anecdotal evidence

of a promotion push across retailers in the run up to Black Friday, according to

an ONS official.

     - The fate of RPI remains up in the air, with a top official saying only

that the ONS awaits recommendations from a House of Lords review that was due at

the end of October.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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