UK Consumer Prices Rise Most Since 2012
2017年10月17日 - 05:45PM
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British consumer prices increased at the fastest pace in more
than five years in September, led by a weaker pound, adding to the
likelihood of a rate hike as early as the next month. Driven by
food and transport prices, inflation rose to 3 percent in September
from 2.9 percent in August, data from the Office for National
Statistics showed Tuesday.
The rate came in line with economists' expectations. The figure
was last higher in March 2012.
Month-on-month, consumer prices gained 0.3 percent in September,
as expected.
Meanwhile, core inflation that excludes energy, food, alcoholic
beverages and tobacco, held steady at 2.7 percent.
Data showed that the consumer price index including owner
occupiers' housing costs (CPIH) climbed 2.8 percent year-on-year in
September versus 2.7 percent in August.
ONS Head of Inflation Mike Prestwood said, "Food prices and a
range of transport costs helped to push up inflation in
September."
"These effects were partly offset by clothing prices that rose
less strongly than this time last year," he added.
At the Treasury Committee hearing on Tuesday, Bank of England
Governor Mark Carney said, "Inflation rising potentially above the
3 percent level in the coming months is something we have
anticipated."
He said it is more likely than not that he will write an open
letter to Chancellor Philip Hammond, explaining why inflation
exceeded the target by one percentage point.
The BoE is set to publish its next Inflation Report with the MPC
decision on November 2.
Further, Carney said the monetary policy is stimulative and
fiscal policy is restrictive. He also said that the UK faces a
variety of headwinds.
Today's data are consistent with the assessment that the
Monetary Policy Committee will raise interest rates in November,
but it won't be panicked into doing so by concerns about inflation,
Paul Hollingsworth, an economist at Capital Economics, said.
The EY ITEM Club on Monday urged the BoE to hold off from
lifting the interest rate until economic prospects look brighter
and there is greater certainty over the Brexit transition
arrangement.
Output price inflation slowed slightly to 3.3 percent, as
expected, from 3.4 percent in August, the ONS said in a separate
report on Tuesday.
On a monthly basis, output prices rose only 0.2 percent after
climbing 0.4 percent.
At the same time, annual growth in input prices remained at 8.4
percent. Meanwhile, monthly input price inflation eased notably to
0.4 percent from 2.3 percent.
UK house price inflation rose to 5.0 percent in August from 4.5
percent in July. Moreover, the latest rate of growth was the
highest since December 2016, when prices had risen 5.2 percent.
Measures of domestically generated inflation are consistent with
there still being some slack in the economy, BoE's newly appointed
deputy governor Dave Ramsden told lawmakers.
"They generally remain a little below levels consistent with the
2 percent target," he added.
"Despite continued robust growth in employment there is no sign
of second round effects onto wages from higher recent inflation,"
Ramsden said.
Ramsden pointed out the risk of Brexit uncertainty weighing on
business investment, causing it to could turn out weaker than the
central forecast of BoE.
If this were to happen then business investment growth would not
compensate for sluggish consumption growth, he added.
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