The Consumer Prices Index (CPI) grew by 1.2% in the year to September 2014, down from 1.5% in August.
Falls in transport costs (notably sea fares and air fares) and prices for a range of recreational goods provided the largest contributions to the slowdown in the rate of inflation between August and September.
Housing & household services (including utility bills) accounted for a third of the rate of inflation in the year to September. If falling food and motor fuel prices were excluded, the rate of inflation would be a third higher.
1.2 percent is the lowest since September 2009, with core inflation rates sitting at a 5 year low.
Sterling down below 1.59660 against the dollar, slumping over 0.6 percent.
With food markets in price wars, food and non-alcoholic drinks fell by 1.4 percent, continuing this flat level since 2004.
Oil prices having fallen to a four-year low, and still falling to a possible $84, reflected in pump prices of 0.8 pence down. This particular commodity could be a target for speculative traders; selling short if the market rises above $90, or gaining profit below $90 for aggressive trade.
Producer Price Index PPI is also down 0.2 percent to -0.6 percent affecting consumer inflation.
Retail price index figures, RPI, stayed the same at 2.3 percent. Not surprising since the UK has experienced an extremely mild autumn affecting sales of interim and winter clothes collections.
Unemployment rates are issued tomorrow – 15 October.
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