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UK CPI FALLS FURTHER BRINGING STERLING DOWN

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UK CPI FALLS FURTHER BRINGING STERLING DOWN

Oct 14 2014, 12.02pm GMT

Stock.com

Consumer Price Inflation, September 2014

Key points from Office for National Statistics

  • 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.

More information

  • 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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