UK consumer price growth stabilised in September

Office for National Statistics said, the Consumer Prices Index (CPI) 12-month inflation rate was 1.7% in September 2019, unchanged from August 2019. Economists had expected a 1.8% increase.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.7% in September 2019, unchanged from August 2019.  The largest downward contributions to change in the CPIH 12-month inflation rate, between August and September 2019, came from motor fuels, second-hand cars, and electricity, gas and other fuels. These downward movements were offset by upward movements from furniture, household appliances, hotel overnight stays, and from recreation and culture items.

ONS also said, the headline rate of output inflation for goods leaving the factory gate was 1.2% on the year to September 2019, down from 1.7% in August 2019. The growth rate of prices for materials and fuels used in the manufacturing process was negative 2.8% on the year to September 2019, down from negative 0.9% in August 2019. Clothing, textiles and leather products provided the largest upward contribution to the annual rate of output inflation. Crude oil provided the largest downward contribution to the annual rate of input inflation.