Economy UK inflation rate edges up from 5-year low

UK inflation rate edges up from 5-year low

Bank of England Governor Mark Carney holds a press conference on the quarterly report on the country's economy at his office in London, Wednesday Nov. 12, 2014. Carney says inflation is "more likely than not" to continue to fall below one percent in the next six months and that growth will be slightly weaker due to a global slowdown. (AP Photo/Stefan Rousseau, Pool)
Bank of England Governor Mark Carney holds a press conference on the quarterly report on the country’s economy at his office in London, Wednesday Nov. 12, 2014. Carney says inflation is “more likely than not” to continue to fall below one percent in the next six months and that growth will be slightly weaker due to a global slowdown. (AP Photo/Stefan Rousseau, Pool)

(AP) — The rate of inflation in Britain has edged up slightly to 1.3 percent in October, but remains well below the Bank of England’s target of 2 percent for the 11th month in a row.

The Office of National Statistics says the annual rate of consumer price inflation rose from a five-year-low of 1.2 percent in September.

Intense price wars among supermarkets put downward pressure on food, clothing and gas prices.

Chris Williamson, the chief economist of Markit, says prices look set to drop further in coming months, with oil and commodity prices falling.

Williamson says the Bank of England is concerned that low inflation could turn to deflation, “inducing another economic slump as consumers defer purchases in the hope of lower prices in the future.”

Previous articleKerry condemns Jerusalem synagogue attack
Next articleNokia bounces back with launch of Android tablet

2 COMMENTS

  1. I just want to tell you that I am newbie to blogging and certainly enjoyed your blog. Almost certainly I’m likely to bookmark your site . You surely have incredible stories. Bless you for sharing your blog.

Comments are closed.