UK inflation holds steady at 2.4% in October

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The UK inflation be worthy of remained steady at 2.4% in October, confounding analyst expectations of a highland to 2.5%.

The Consumer Prices Index (CPI) figure included falls in food and clothing gets, but rising utility bills and petrol prices, said the ONS.

The inflation twig comes a day after data showed that wages were go by 3.2% – the fastest pace in nearly a decade.

Core inflation also held constant at 1.9% in October.

That figure strips out the out the effects of energy, viands, alcohol and tobacco prices.

Has inflation peaked?

Inflation hit a five-year strident of 3.1% in November 2017, as the inflationary effect of sterling’s decline after the June 2016 Brexit preference hit its peak.

However, it is still above the Bank of England’s 2% quarry.

The ONS’s head of inflation, Michael Hardie, said: “Prices paid by consumers go oned to rise at a steady rate, with falls in food and clothing reimburse by rising utility bills and petrol, as crude [oil] prices continued to ascent.”

The Bank of England expects inflation will drift lower, but look forwards to have to raise interest rates in coming years to keep inflation at or contiguous its target figure.

How were different retail sectors affected?

Grub prices cooled off. The cost of oils and fats dropped by 6.3% compared with the former month, while milk, cheese and eggs prices were down 1.4%.

Inclusive food and non-alcoholic drink prices dropped by 0.2% in October. Outfitting and footwear also dipped by 0.5%.

But gas and electricity prices both jumped by 2%, while solution fuels soared by 7.2%.

How have manufacturers fared?

Looking at the latest age, for manufacturers, the cost of raw materials was 10% higher than in October 2017.

And makers increased the prices they charged by 3.3% year-on-year compared with 3.1% the above-mentioned month.

How have house prices been affected?

The ONS said clan prices in September rose by an annual 3.5% against 3.1% in August.

But prizes in London fell for a third month running, down by 0.3%.

What does this connote for interest rates?

Analysis by economics correspondent Andy Verity

There may not participate in been a change in the inflation rate, but there has been a change in beliefs regarding when interest rates are likely to rise. In the City, the flutter now is that the next upward move by the Bank of England is more qualified than not to come as early as next May.

That would take the accredited rate to the giddy heights of 1%.

But is by no means obvious that rates see fit have to rise soon to tame inflation. If you strip out volatile ingredients like food and fuel, so-called “core inflation” remains repressed at 1.9%.

Even though wages are rising more strongly, there’s Lilliputian sign that prices are rising to compensate for those higher expenditures – rather, competition is holding prices down. Then again, the Bank of England has achieved no secret of its desire to “normalise” rates, so the markets may be right.

Is there a Brexit banker?

According to Laith Khalaf, senior analyst at Hargreaves Lansdown: “Brexit is noiselessness the elephant in the room when it comes to the future path of inflation, and hence of monetary policy.

“That’s because the pound now waxes and wanes with the Brexit arrangements, and that has a big impact on how much UK consumers pay for imported goods.

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