UK CPI softens in Oct, misses expectations

The UK consumer prices stagnated in the month of October, ticked slightly lower to 3.0%, missing estimates of 3.1% y/y, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge steadied in Oct, 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 slightly, coming in at 0.1% last month, as compared to 0.3% previous and expectations of 0.2%. 

ONS reports, “rising prices for food and, to a lesser extent, recreational goods provided the largest upward contributions to change in the rate between September 2017 and October 2017. The upward contributions were offset by falling motor fuel and furniture prices, along with owner occupiers’ housing costs, which remained unchanged between September 2017 and October 2017, having risen a year ago.”