Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
(Corrects October headline inflation to 4.6% (not 4.7%))
UK inflation slowed markedly in October, the Office for National Statistics said Wednesday, with headline inflation dropping to 4.6% y/y, down from 6.7% in September. Core inflation also slowed, but at a gentler pace, dipping to 5.7% y/y.
It was the biggest fall in annual headline CPI from one month to the next since April 1992 and the first time below 5% since October 2021.
“Inflation fell substantially on the month as last year’s steep rise in energy costs has been followed by a small reduction in the energy price cap this year. Food prices were little changed on the month, after rising this time last year, while hotel prices fell, both helping to push inflation to its lowest rate for two years," ONS Chief Economist Grant Fitzner said.
“The cost of goods leaving factories rose on the month. However, the annual growth was slightly negative, led by petroleum and basic metal products.”The sharp slowdown to below 5% will come as no surprise to the Bank of England -- Governor Andrew Bailey had pointed to such a decline recently, highlighting the quarterly change in electricity caps as a driving factor. The fall also makes it more likely Prime Minister will hit his key pledge of halving inflation -- he would need price growth to be below 5.1% across Q4.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.