UK annualized CPI meets estimates in Sept, core figures disappoint

The UK consumer prices stagnated in the month of Sept, ticked slightly higher and matched estimates at 3.0% y/y, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge steadied in Sept, coming in at +2.7 y/y. Markets had predicted the core figures to come in a tad firmer at +2.8%.

On monthly basis, the UK inflation figures decelerated, coming in at 0.3% last month, as compared to 0.6% previous and expectations of 0.3%. 

ONS reports, “the main contributors to the increase in the rate were rising prices for food and recreational goods, along with transport costs, which fell by less than they did a year ago. These upward effects were partially offset by downward contributions from a range of goods and services, in particular clothing prices, which rose by less than they did a year ago.”