Investing.com - Consumer price inflation (CPI) in the UK hit a fresh five-year high in September, official data showed on Tuesday.
In a report, the UK Office for National Statistics (ONS) said the rate of consumer price inflation rose from the year before by a seasonally adjusted 3.0% last month, after increasing 2.9% in August.
That was in line with forecasts and was its highest level since the spring of 2012.
Month-over-month, consumer price inflation rose 0.3% in September, also in line with consensus and compared to the 0.6% gain registered in the previous month.
The ONS indicated that the main contributors to the increase in the rate were rising prices for food and recreational goods, along with transport costs, which fell by less than they did a year ago.
“These upward effects were partially offset by downward contributions from a range of goods and services, in particular clothing prices, which rose by less than they did a year ago,” the ONS said.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 2.7% last month, holding steady as expected at August’s reading.
The retail price index (RPI) increased by 3.9% in September, unchanged from the previous month’s rise. Analysts had expected inflation to increase to 4.0%.
Month-on-month, RPI increased by just 0.1% in September, compared to a 0.7% advance in the prior month. Economists had forecast a 0.3% gain.
Core RPI increased at an annualized rate of 4.1% in September, unchanged from the prior month while below forecasts for an increase to 4.2%.
Month-on-month, core RPI increased 0.1% last month, compared to August’s 0.7% rise.
The data also showed that the house price index rose 5.0% in September, below forecasts for a gain of 5.4% and following a 4.5% increase a month earlier. August’s data was revised from an initial 5.1% rise.
Following the report, GBP/USD traded at 1.3276 from around 1.3281 ahead of the release of the data, EUR/GBP was at 0.8866 from 0.8864 earlier and GBP/JPY changed hands at 148.90, compared to 148.92 previously.
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