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UK inflation falls slightly in October

The Consumer Prices Index – which measures changes in prices – fell by 0.1% in the year to October 2015, according to the Office for National Statistics.

Households have seen the prices they pay for goods and services remain largely unchanged over the last year.

This means that a basket of shopping that cost £100.00 a year ago would cost £99.90 now.

This is the same rate of inflation as seen in the year to September and continues the trend of negligible inflation that the UK has experienced since the start of 2015.

The news means it is unlikely the Bank of England will increase interest rates, with analysts not expecting a rise until some time next year.

The ONS said prices fuel prices fell by 14% on an annual basis, while food and drink prices fell by 2.7% in October and energy costs were 4.1% lower.

For most of the last 10 years (a short period in 2009 notwithstanding), core inflation has been lower than overall inflation. Since spring 2014, this picture has reversed due to the prices of many of the goods excluded from core inflation (notably motor fuel and food) falling.



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