UK Inflation Slows in September

In September, the UK inflation rate, measured by the Consumer Price Index (CPI), rose by 1.7%, down from 2.2% in August, according to the Office for National Statistics.  

This increase was lower than the predicted 1.9%, staying below the Bank of England’s 2% target. 

Core Inflation Misses Estimates

Core inflation, which excludes food and energy, grew by 3.2% in September compared to 3.6% in August, missing the expected 3.4%. 

Service sector inflation dropped to 4.9% in September from 5.6% in August, falling below the important 5% mark. 

Month-over-Month Inflation Stalls

The month-over-month CPI remained flat at 0% in September, after a 0.3% rise in August, while the market had expected a 0.1% increase.  

Given the lower-than-expected inflation data, there is speculation that the Bank of England might consider a rate cut in the coming weeks to support the economy.