UK inflation falls to 1.7% in August

Wednesday, 18. September 2019 10:31

Annual price growth in Britain dropped last month below the Bank of England's target and the core reading surprised even more to the downside. Recreation and culture added the biggest negative contribution, followed by clothing and footwear. Airfares partly offset the impact, as did food and alcoholic drinks. The year-over-year rate decreased to 1.7%, the lowest point since December 2016, from 2.1%. The underlying measure also lost 0.4 percentage points, to 1.5%. It was last weaker in November 2016.

Consumer prices still gained 0.4% last month alone after coming in flat in July. Monetary guardians have a price stability goal set at 2%. The national CPIH index, which includes the so-called owner occupiers’ housing costs, gained 1.7% from August 2018 against 2% registered for July.

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