Thursday, October 19, 2017

“No clear evidence” of Brexit’s effect on inflation says ONS

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UK inflation reduced slightly last month, dropping from 1 per cent in September to 0.9 per cent.

New figure from the Office of National Statistics shows that last month‘s inflation was below economists predictions of 1.1 per cent.

Despite stating that there was “no clear evidence” the devaluation of the pound was yet effecting retailer‘s prices, the ONS‘s Producer Prices Index (PPI) shows that manufacturers were feeling the strain with a 12.2 per cent price hike.

The latest report from the manufacturing industry supports this data, revealing that since the referendum prices of purchasing costs had risen by the highest amount in the surveys history.

“After initially pushing up the prices of raw materials, the recent fall in the value of the pound is now starting to boost the price of goods leaving factories as well,” ONS head of inflation Mike Prestwood said.

“However, aside from fuel, there is no clear evidence that these pressures have so far fed through to the prices in shops.”

The footwear and clothing sectors reportedly had the biggest positive impact on inflation figures, rising by just 0.2 per cent compared to 2.3 per cent last year.

Food and non-alcoholic beverages also made an impact on the Consumer Price Index (CPI) as the price wars ensure prices continue to decrease.

Mark Carney of the Bank of England has warned UK shoppers that inflation is predicted to rise by 2.7 per cent next year.

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