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MNI BRIEF: No Scares For BOE As UK Inflation Holds Steady

(MNI) London

UK annual inflation was unchanged in September at 6.7%, the Office for National Statistics said Wednesday, just a touch above analyst expectations, as higher fuel and hotel costs weighed against falling food and drink costs.

“After last month’s fall, annual inflation was unchanged in September. Food and non-alcoholic drinks prices eased again across a range of items with the cost of household appliances and airfares also falling this month. These were offset by rising prices for motor fuels and the cost of hotel stays," ONS Chief Economist Grant Fitzner said.

Core inflation slowed modestly, falling to 6.1% from 6.2% in August, despite an uptick in services prices to 6.9%.

The data was largely in line with Bank of England forecasts and, along with the modest loosening of the labour market seen in Tuesday's data, the MPC will be given added ammunition for a further pause on interest rate hikes at its November meeting.



MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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