November 16, 2023 (MLN): The UK’s inflation rate dropped to the lowest level in two years in October, with the Consumer Prices Index (CPI) clocking in at 4.6% YoY, as compared to 6.7% in the previous month, according to the latest data issued by National Statistics.
On a monthly basis, CPI remained unchanged in October 2023, as compared to an increase of 0.5% MoM in the previous month and 2% MoM in October 2022.
The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 4.7% YoY in October 2023, down from 6.3% YoY in the previous month.
While on a sequential basis, the CPIH rose by 0.1% MoM in October 2023, compared with a rise of 1.6% MoM in October 2022.
The largest downward contribution to the monthly change in both CPIH and CPI annual rates came from housing and household services, where the annual rate for CPI was the lowest since records began in January 1950.
The second-largest downward contribution to the monthly change in both CPIH and CPI annual rates came from food and non-alcoholic beverages where the annual rate was the lowest since June 2022.
Moreover, Core CPI, which excludes energy, food, alcohol, and tobacco rose by 5.7% YoY in October 2023, down from 6.1% YoY in September.
Similarly, the Core CPIH rose by 5.6% YoY in October 2023, down from 5.9% in the previous month.
