Proactive Investors - Good morning. Just released, figures from the Office for National Statistics show the consumer price index rose by 6.7% in August, down from 6.8% in July, and well below City expectations for a rise to 7.1%.
On a monthly basis, CPI rose by 0.3% in August, compared with a rise of 0.5% in August 2022.
Core CPI (excluding energy, food, alcohol and tobacco) rose by 6.2% in the 12 months to August, down from 6.9% in July, again well below City expectations.
Annual inflation slowed slightly in August 2023:▪️ Consumer Prices Index including owner occupiers’ housing costs rose by 6.3% in the 12 months to August, down from 6.4% in July
▪️ Consumer Prices Index (CPI) rose by 6.7%, down from 6.8% in July
➡️ https://t.co/Ve9iV25p0e pic.twitter.com/TCZp8gJ0yV
— Office for National Statistics (ONS) (@ONS) September 20, 2023
The ONS said the the largest downward contributions to the monthly change in both CPIH and CPI annual rates came from food, where prices rose by less in August than a year ago, and accommodation services, where prices can be volatile and fell in August.
Rising prices for motor fuel led to the largest upward contribution to the change in the annual rates.
The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 6.3% in the 12 months to August 2023, down from 6.4% in July.
The fall will put pressure on the Bank of England to stop raising interest rates and keep them at 5.25 per cent on Thursday.
Futures are now pointing to a bright start by the FTSE 100 which was earlier indicated to open lower.