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Inflation remains static after sharp August fall: ONS

Inflation picked up sharply post June 2016, rising from 0.3% in May 2016 to 3.1% in November 2017.

Rozi Jones
|
16th October 2019
pound coins money scales balance business man hands
"UK inflation has been on a rollercoaster ride since the Brexit vote in 2016."

CPI inflation was 1.7% in September, unchanged from the previous month, according to the latest ONS statistics.

CPI inflation dropped sharply in August to 1.7%, down from 2.1% in July to the lowest level since December 2016.

CPIH inflation, The ONS' headline measure which includes owner occupiers’ housing costs, also remained unchanged at 1.7% in September.

The largest downward contributions to change in the CPIH inflation rate 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.

Andrew Evans, UK equity fund manager at Sanlam Investments, commented: “UK inflation (CPI) has been on a rollercoaster ride since the Brexit vote in 2016. Driven along by a dramatic shock fall in Sterling, inflation picked up sharply post June 2016, rising from 0.3% in May 2016 to 3.1% in November 2017. Since then, it has gently trended downwards to 1.7% in August 2017.

"A number of factors are keeping a lid on inflation: global growth appears to be slowing, and trade tensions have impacted demand globally. In addition, energy and commodity prices remain fairly benign for the most part. In spite of full employment in the UK, and real wage growth, inflation remains fairly steady and manageable.”

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