2021.10.2006:58:00UTC+00UK Inflation Slows Slightly In September

UK consumer price inflation slowed slightly in September, the Office for National Statistics said Wednesday.

Consumer price inflation slowed slightly to 3.1 percent from 3.2 percent in August. Economists had forecast the rate to remain unchanged at 3.2 percent.

Inflation remained well above the central bank's 2 percent target.

On a monthly basis, the consumer price index gained 0.3 percent, following August's 0.7 percent increase. Prices were forecast to grow 0.4 percent.

Core inflation that excludes energy, food, alcoholic beverages and tobacco, slowed to 2.9 percent from 3.1 percent in the previous month.

As the inflation is still above the 3.0 percent rate the Bank of England forecast back in August, it is unlikely to significantly reduce expectations that the BoE will raise interest rates before the end of the year, Paul Dales, an economist at Capital Economics, said.

Another report from the ONS showed that output price inflation accelerated to 6.7 percent in September from 6 percent. The rate was slightly weaker than the 6.8 percent economists had forecast.

On month, the output prices gained 0.5 percent but weaker than the prior month's 0.7 percent increase. Prices were forecast to climb 0.5 percent.

At the same time, input prices grew at a faster pace of 11.4 percent in September following the 11.2 percent rise in August. Economists had forecast the rate to ease to 11.6 percent.

Month-on-month, input prices moved up 0.4 percent versus 0.5 percent a month ago, while economists forecast the rate to advance to 1 percent.