UK Inflation Rises to 1.3% in October

UK inflation rose to an annual rate of 1.3% in October, up from 1.2% in the previous month, official figures show.

The slight increase moves the rate, as measured by the Consumer Prices Index (CPI), above its recent five-year low.

The Office for National Statistics (ONS), said the marginal rise was because transport costs fell by less than they did a year ago.

In addition, prices in the recreation and culture sectors rose, particularly for computer games and toys.

However, the price of food and non-alcoholic beverages fell by 1.4% in October, when compared with last year, marking the sixth consecutive month without a rise – the longest such period since 2000.

Furniture and household equipment prices also fell, by 1.1%, most notably three-piece suites and settees.

In a separate development on Tuesday, retail analysts Kantar Worldpanel said UK grocery sales had fallen for the first time in twenty years.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza