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MNI BRIEF: UK CPI Exceeds Forecasts; Hits Near-Decade High

(MNI) London

UK CPI rose by even more than elevated expectations in October, hitting an annual rate of 4.2%, exceeding the 3.9% predicted by analysts and Bank of England staff and well above the 3.1% pace recorded in September. That's the highest rate of inflation since November of 2011.

The recent surge in energy prices drove much of the surge. Electricity, gas and other fuels accounted for 0.63 percentage points to the change in CPI, while motor fuels added another 0.1 percentage point.

Core CPI rose to an annual rate of 3.4%, the highest rate since April of 2011. RPI surged to an annual rate of 6.0% from 4.9% in September, the fastest pace since April of 1991.

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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