UK inflation slows more than forecast on food, transport


UK inflation slowed more than expected in September, dragged lower by the cost of food and transport fares. Annual consumer-price growth dip-ped to 2.4 percent from 2.7 percent in August, the Office for National Statistics said on Wednesday. The rate was lower than the median 2.6 percent forecast in a Bloomberg survey.
Downward pressure came mainly from food prices, which fell 0.2 percent on the month with chocolate and meat the key drivers. There was also pressure from ferry prices, clothing and recreation and culture such as theater tickets and computer games. These influences were partly offset by energy prices, with tariff hikes lifting electricity prices by 1.8 percent. Core inflation, which excludes some food, slowed to 1.9 percent in September. Inflation averaged 2.5 percent in the third quarter, in line with Bank of England forecasts. Signs of domestic cost pressures prompted officials to raise interest rates in August, but no further moves are expected before there is clarity on Brexit.

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