london (reuters) – the rate of inflation was held in october in the united kingdom at the level of the previous month, the bank of england, and economists expect it to reach a new peak, according to figures released tuesday by the national statistics office (nso).
compared with october 2016, consumer prices rose by 3.0%, while economists polled by reuters expect an average figure of 3.1%. excluding energy, food, alcohol and tobacco, the annual index is also maintained at 2.7 per cent, while economists expected 2.8%.
these figures are expected to increase the doubts of economists on the merits of the decision of the bank of england to raise interest rates, in a context of a weakening economy and the impact of the vote for an exit from the united kingdom to the european union last year was at its highest.
the governor of the boe, mark carney, indicated that the overshooting of the inflation target of 2% was due to a fall of more than 10% of the book in the voting for the brexit, which pushed up the prices of imported products.
uk inflation rose sharply relative to its rate of 0.5% in june 2016, at the time of the referendum, to reach its highest level since april 2012.
the nso has indicated that the stability of the inflation rate in october was the result of a fall in the price of fuel, which is offset by an increase in food prices.
inflation, as measured by the producer price is to drop to 2.8%, its lowest level since november 2016, while economists looked at 2.9%.
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Translated by forexguides.info Team