Although the majority of the UK are still in deep shock regarding Sunday nights unexpected and traumatic events, today’s data releases serve to remind us that there is life beyond the grounds of Downton Abbey.
Recent figures compiled by the Office for National Statistics have shown that in September inflation dropped to the lowest level seen since November 2009. Though not as momentous as seeing the Dowager Countess of Grantham cry, this is still an important development for the UK as lower inflation will increase the Bank of England’s scope to extend its quantitative easing policy. Conversely, higher inflation would negatively impact the disposable income of Briton’s, which had only recently shown signs of improvement.
The ONS recorded that consumer price inflation for September met economist’s expectations, dropping from Augusts’ figure of 2.5 per cent to a near three-year-low of 2.2 per cent. Retail price inflation also dropped 0.3 per cent from August, hitting 2.6 per cent.
Separate reports showed that input prices dropped by more-than-forecast, falling by 1.2 per cent on the year rather than the expected 0.8 per cent. This was attributed to the decreasing costs of crude oil and imported metal. Factory gate inflation also increased on the year, reaching 2.5 per cent.
The ONS also recorded a 2.8 per cent increase in house prices for August, 0.2 per cent lower that the rise seen in July.
Although inflation hitting a near three-year-low sounds good on the surface, the figure did benefit from the dramatic hike in energy prices seen last year which pushed inflation to a peak of 5.2 per cent.
A separate survey published by YouGov yesterday showed that British citizens see increasing energy costs in the coming year as the primary threat to living standards. Further to this, the ONS commented that the consumer price inflation figure could experience a significant upward climb in the months ahead in light of the 6-9 per cent price increases planned by four of the UK’s most prominent energy suppliers.
As of 10.38
The Pound to Euro exchange rate is currently trading at 1.2378
The Pound to US Dollar exchange rate is currently trading at 1.6078
The Pound to Australian Dollar exchange rate is currently trading at 1.5674
The Euro to US Dollar exchange rate is currently trading at 1.2989
The Euro to Pound exchange rate is currently trading at 0.8077
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