UK CPI unexpectedly eases to 2.4% y/y in September

  • UK CPI unexpectedly eases to 2.4% y/y in September

UK CPI unexpectedly eases to 2.4% y/y in September

Nigeria's Consumer Price Index (CPI), otherwise referred to as inflation rate for goods and services, rose for the second time in two months after 18 months of consecutive decline.

"We expect headline inflation to hover around 2 per cent over the coming year, but upside risks have increased", economists at Capital Economics wrote in a recent report.

The consumer price index (CPI) rose 2.5 percent from a year earlier, in line with expectations of 2.5 percent and accelerating from August' s 2.3 percent gain.

"Coupled with the gradual up-tick in wages, the slowing rise in prices will deliver a boost to consumers' real take-home pay packets, which will also be welcome news for retailers", Tej Parikh, a senior economist at lobby group the Institute of Directors said.

The Consumer Prices Index fell to 2.4 per cent from a six-month high of 2.7 per cent in August, the Office for National Statistics said in a statement.

Combined with the pay growth figures for British workers, which showed average weekly earnings rising at the fastest rate in nearly a decade, the latest snapshot for United Kingdom inflation suggests pressure on households is beginning to fade two years on from the European Union referendum.

Still, the wage growth of 3.1 percent remained meagre by historical standards when adjusted for inflation.

Consumer price inflation hit a five-year high of 3.1 percent in November, when the inflationary effect of the pound's tumble after Brexit vote in June 2016 reached its peak.

Prices of raw materials rose 7.3 per cent in September from a year earlier, down from a 7.8 per cent increase in August, according to the statistics bureau.

Ferry prices also fell from a surprisingly high summer peak, while the cost of going to the theatre dropped compared to an increase a year ago.

"The urban inflation rate increased by 11.70 percent (year-on-year) in September 2018 from 11.67 percent recorded in August 2018, while the rural inflation rate increased by 10.92 percent in September 2018 from 10.84 percent in August 2018".

Manufacturers increased the prices they charged by 3.1 percent compared with 2.9 percent in August, again stronger than all forecasts in the poll that had pointed to a 2.9 percent increase.

On a monthly basis, the PPI picked up to 0.6 percent from 0.4 percent in August.