Forex News

UK consumer prices slide to the lowest since 2016

UK consumer prices slide to the lowest since 2016

U.K. consumer prices fell to the lowest level since 2016, data from the Office for National Statistics showed Wednesday.

The CPI inflation measure recorded 1.7 percent rise in the year ended August, coming below forecasts of 1.8 percent, decelerating from 2.1 percent in July. The fall from 2.1 percent to 1.7 percent is the largest since late 2014.

The slowdown in inflation was triggered by computer game and clothing prices, the ONS said.

“The largest effect came from computer games, with prices overall falling by 5.0% between July and August 2019,” the ONS explained. “Clothing prices rose by 1.8% this year compared with a larger rise of 3.1% a year ago.”

The annual core CPI reading also retreated to 1.5 percent from a prior of 1.9 percent. That was beneath analysts’ projections of 1.8 percent.

As of 08:45 GMT, the pound traded lower versus the U.S. dollar at 1.2443, ahead of the awaited Federal Reserve rate decision later in the day.

Share Article