UK inflation rate stays at 1.8 percent
October 17, 2007 - 0:0
The UK inflation rate remained unchanged at 1.8 percent in September, according to official figures.
The main upward pressure on the Consumer Prices Index (CPI) came from rising food prices, but these were offset by falling energy bills.The rate remains below the government's 2 percent target. Analysts say an imminent interest rate rise change is unlikely.
The RPI inflation measure -- which includes mortgage interest payments -- fell to 3.9 percent in September from 4.1 percent.
The single biggest factor increasing prices was food, adding 0.09 percentage points to the yearly CPI rate, even though vegetable prices fell.
Dairy products saw particularly sharp increases, increasing 6.3 percent in September.
The latest figures are unlikely to have an impact on the interest rate outlook.
Following recent turmoil in the credit markets, previous expectations that the Bank of England would raise interest rates to 6 percent from 5.75 percent have been questioned.
Analysts are now saying the UK interest rate will remain the same and could even fall.
Gas and electricity bills fell even as oil hovered around the 80 dollars a barrel mark for the month.
(Source: BBC)