Ekonomické zprávy
17.11.2021

UK consumer price index rose to a 10-year high in October

A report published by the Office for National Statistics showed that in October, the consumer price index rose by 1.1% on a monthly basis after increasing by 0.3% in September. The latest change exceeded the forecasts of experts who expected CPI growth to accelerate to only 0.8%.

In annual terms, consumer prices increased by 4.2%, which is the highest value in 10 years. Thus, CPI growth accelerated compared to September (+3.1%) and turned out to be higher than expected (+3.9%).

The data also showed that in October, the Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 3.8% per annum compared with an increase of 2.9% in September. The reason for the acceleration of price growth was the increase in the cost of housing and communal services (+1.23%), transport (+1.08%) and restaurants and hotels (0.43%). On a monthly basis, CPIH increased by 0.9%.

Overall, the latest data will strengthen expectations that the Bank of England will raise interest rates next month and become the first of the world's largest central banks to do so after the pandemic.

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