UK Inflation Sets to Hit 11% in October
Amidst rising prices, analysts have projected that the inflation rate in the United Kingdom will spike further to 11% in October, according to ING economist James Smith note.
In a note obtained by MarketForces Africa, the firm said rising food and energy prices have taken UK inflation another leg higher. Headline consumer price index (CPI) had settled at 9.4% in June as petrol/diesel costs rose by almost 10% on the month, and food by over 1%.
According to the note, the latter is now running at almost 10% year-on-year and looks set to exceed 15% later this year given rapidly rising import costs. READ: Analysts See Inflation Slowdown as NBS Sets to Release Data
“The next rise in the household energy price cap, due in October, looks set to exceed April’s 54%, though the Office of National Statistics is still yet to decide whether the effect of the government’s £400 energy rebate will factor into the CPI numbers.
“Assuming it doesn’t, headline inflation is likely to peak at around 11.5% in October”. But while it will take some time for the headline numbers to hit a peak, core inflation may have already done so.
Core CPI slipped a tenth of a percentage point in June and ING economists think it’s likely to flat line/modestly fall back through the rest of the year.
There are further hints that some of the supply-driven aspects of inflation are cooling – demonstrated by another sharp fall in used car prices which are now almost 8% lower than their January peak. # UK Inflation Sets to Hit 11% in October
