Inflation in UK Outpaces Europe, Prices Index (CPI) — Hit 3 Percent, Its Highest For Five Years

Growth in consumer prices including owner occupiers’ housing costs remained at the same rate of 2.8% for October 2017.

Growth in input prices for UK manufacturers is slowing rapidly, in line with an unwinding of the sterling depreciation effect on import prices seen during 2016.

Food prices are increasing across all main classes of product, including dairy products, which have seen recent wholesale shortages.

Goods price inflation has been increasing compared with other European countries, and is associated with higher import-intensive products bought in the UK such as food and clothing.

Retail energy prices for consumers do not always closely follow producer prices for the same products, but this is likely to be due to complex regulatory structures, pricing strategies and environmental and tax policies present in these markets.

Flat sales dominate property transactions in London but average price growth across all property types in London has been slowing from mid-2016, reversing previous trends.

Contributions to the 12-month growth rate in the food category of the Consumer Prices Index including owner occupiers’ housing costs:

Image: UK Food Price Increases, January 2015 to October 2017. Figures ONS. 

ABC Note: The Bank of England has announced that the old £10 notes, featuring Charles Darwin, must be spent before 1 March next year! The old paper notes will no longer be legal tender after that date, but can still be exchanged by the Bank after the cut-off date.