Inflation falls close to target
THE headline rate of inflation has fallen to its lowest level for almost three years.
CPI inflation was recorded at 2.2% in September, down from 2.5% in August.
Coverage of the inflation data is brought to readers of TheBusinessDesk.com in partnership with stockbrokers Redmayne-Bentley.
The fall takes the headline rate close to the Bank of England’s 2% target and increases the likelihood that the Monetary Policy Committee will endorse a fresh round of quantitative easing.
Third quarter growth figures out later this month are also likely to weigh heavily on the MPC’s deliberations.
Inflation is now at its lowest level since November 2009 and has fallen dramatically in the last 12 months from 5.2% last September.
Phillip Wong, from Redmayne-Bentley, said: “The Bank of England’s target rate inflation figure of two per cent appears to be in sight as CPI fell to 2.2% in September, its lowest level in three years, and RPI fell to 2.6%.
“This offers further credence to additional QE measures next month and will be a much needed measure following recent growth downgrades on the UK economy by the IMF. News that energy prices will increase yet again from the big providers could however, help push the figure back up again.”
