UK inflation unexpectedly falls to 19-month low
By Benjamin Chiou
Date: Wednesday 20 Sep 2023
(Sharecast News) - UK inflation unexpectedly fell in August, with the core measure of price growth slowing dramatically, adding to hopes that the Bank of England's next interest-rate hike could be its final one in the current cycle.
The year-on-year change in the consumer price index (CPI) eased to 6.7% last month, from 6.8% in July and surprising economists who had forecast a slight tick-up to 7.1%.
This was the lowest level for annualised inflation since February 2022, partly due to a slowdown in food and non-alcoholic beverage price growth.
Core inflation, which excludes the more volatile items like food and energy, dropped to 6.2% in August, from 6.9% the month before and well below the 6.8% reading expected.
"While this dip in inflation eases the pressure somewhat on the Bank of England to raise rates once more, it likely still remains poised to pull the trigger on another 25 basis points interest rate hike tomorrow," said Richard Carter, head of fixed interest research at Quilter Cheviot.
"If this proves to be the case, many will be asking when enough is enough. The BoE has had a tough task in navigating its fight against inflation, and this morning's figures suggest it may finally be having a real impact."
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN