ONS: Inflation Holds at 2.4%

The UK inflation rate remained steady at a rate of 2.4% last month, despite analyst predictions of an increase to 2.5%.

Key points from the ONS consumer price inflation publication include:

• The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.2% in October 2018, unchanged from September 2018.

• The large downward contributions to the change in the 12-month rate from food and non-alcoholic beverages, clothing and footwear, and some transport elements were offset by upward contributions from rising petrol, diesel and domestic gas prices.

• Other smaller upward contributions came from items in the miscellaneous goods and services, recreation and culture, and communication sectors.

• The Consumer Prices Index (CPI) 12-month rate was 2.4% in October 2018, unchanged from September 2018.

Business Growth Expert and Yomdel CEO, Andy Soloman, commented:

“It's good news as far as today's inflation announcement is concerned. A hike would have resulted in further pleas for an interest rate hike, perhaps, schadenfreude like, even from the Bank of England Governor himself once again, a dynamic that would be terrible news for British business and for the consumer. Assuming wage growth continues its upward trajectory, consumer confidence will stay positive. We’ve seen the affordability of borrowing start to decrease and come the new year, we could see inflation continue to climb, resulting in a bleak January for those who have whittled away their nest eggs under the influence of mulled wine and mince pies.”

Source : Insight DIY Team

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