Inflation: the key charts
Despite rising to 0.7% last month, UK inflation is still some way below the 2% target:
While this chart shows how clothing and food had the biggest upward contribution to the cost of living last month:
Introduction: Clothes and food prices lift inflation
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Britain’s inflation rate has nudged higher, lifted by rising clothing prices, food, and second-hand cars.
Figures released by the Office for National Statistics this morning show that the Consumer Prices Index rose to 0.7% in October, up from 0.5% in September. That’s the highest in three months, after the CPI fell to just 0.2% in August.
Economists had expected a smaller rise, to 0.6%.
Here’s the details:
- Clothing prices overall rose by 2.8% between September and October 2020, compared with a smaller increase of 0.9% between the same two months a year ago.
- Food prices….rose by 0.1% between September and October 2020, compared with a fall of 0.6% between the same two months a year ago. The largest upward contributions came from vegetables (including potatoes and tubers), and fruit.
Most of the upward contribution to clothes prices came from women’s clothing, the ONS says, with further smaller upward contributions from men’s and children’s wear.
The ONS’s deputy national statistician Jonathan Athow explains:
“The rate of inflation increased slightly as clothing prices grew, returning to their normal seasonal pattern after the disruption this year.”
“The cost of food also nudged up, while second-hand cars and computer games also all saw price rises. These were partially offset by falls in the cost of energy and holidays.
Elsewhere, European stock markets are expected to be subdued as investors ponder rising Covid-19 case growth and tighter restrictions.
Overnight, coronavirus cases in Tokyo have hit a record of 493, and South Australia has announced a six-day lockdown.
Bitcoin, meanwhile, remains on a tear – hitting a new three-year high of $18,000 overnight which puts its record high in sight…
- 7am GMT: UK inflation report for October
- 10am GMT: eurozone inflation report for October
- 10.30am GMT: Bank of England chief economist Andy Haldane speaks at The CityUK’s National Conference 2020
- Noon GMT: US weekly mortgage approvals
- 1.30pm GMT: US housing starts and building permits for October
- 3.30pm GMT: EIA weekly US oil stocks