2020.10.2109:37:00UTC+00UK Inflation Rises In September

UK consumer price inflation accelerated in September as restaurant and caf? prices increased, driven by the end of the Eat Out to Help Out scheme, the Office for National Statistics said Wednesday.

Consumer prices climbed 0.5 percent annually, faster than the 0.2 percent increase seen in August.

The rate came in line with expectations. Nonetheless, the rate is far below the central bank's target of 2 percent.

Month-on-month, consumer prices advanced 0.4 percent, offsetting a 0.4 percent fall in the previous month. Prices were forecast to gain 0.5 percent.

Excluding energy, food, alcoholic beverages and tobacco, core inflation increased to 1.3 percent from 0.9 percent a month ago.

Another report from the ONS showed that output prices continued to fall in September. Factory gate prices declined 0.9 percent on a yearly basis, the same rate as seen in the past three months and matched expectations.

Output prices dropped 0.1 percent on month, offsetting a 0.1 percent rise in August.

The ONS said the annual rate of input inflation continued to display negative growth for the eighth consecutive month. Input prices slid 3.7 percent from last year, but slower than the 5.6 percent fall a month ago. Economists had forecast an annual decrease of 5.5 percent.

On month, input prices grew 1.1 percent, in contrast to a 0.2 percent drop in August.