Great Britain. Inflation in September 2023 above expectations

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Inflation in Great Britain in September 2023 was 6.7 percent, year-on-year, the British Statistics Office reported on Wednesday. The price growth rate remained at the same level as in August, meanwhile analysts expected further deceleration in inflation. The core inflation rate excluding food and energy prices decreased less than expected.

The market consensus, i.e. the median of analysts’ forecasts, assumed a drop in inflation to 6.6%. Every year. Meanwhile, official data showed that the annual price increase remained at 6.7%, which is the lowest level since February 2022.

“CPI inflation stopped falling and in September it was slightly above economists’ expectations,” wrote Jacek Rzeźniczek, an analyst at stooq.pl, in a commentary.

Inflation in the UK

New data show that the increase in service prices accelerated to 6.9 percent in September. with 6.8 percent in August.

Moreover, core inflation – excluding food and energy prices – fell less than expected to 6.1%. in September from 6.2 percent in August.

Data worse than expected mean that it is uncertain whether the Bank of England – as in September – will leave interest rates at 5.25%. The next meeting is scheduled for November 2. Interest rates did not change in September after an unexpected drop in inflation in August.

Inflation in the UK is still well above the Bank of England’s inflation target of 2%. At its peak in October last year, inflation reached 11.1%. Inflation will remain above target until early 2025, according to the Bank of England’s August forecasts.

Main photo source: EPA/ANDY RAIN



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