British inflation holds at 0.6% despite Brexit vote

The 12-month Consumer Price Index rose by 0.6 percent in August, as rising food and transport prices were offset by the falling cost of clothing, wine and hotels

AFP September 13, 2016 17:37:18 IST
British inflation holds at 0.6% despite Brexit vote

London: Britain's annual inflation rate held steady last month, official data showed Tuesday, giving little indication that the post-Brexit collapse in the pound had lifted prices.

British inflation holds at 06 despite Brexit vote

Reuters

The 12-month Consumer Price Index rose by 0.6 percent in August, as rising food and transport prices were offset by the falling cost of clothing, wine and hotels, the Office for National Statistics (ONS) said in a statement.

CPI had also risen by 0.6 percent in the year to July, the ONS added. Market expectations had been for an August increase of 0.7 percent.

The ONS added that there was "little sign" of the plunge of the pound to 31-year lows, after the shock June 23 Brexit vote, being passed through to consumer prices.

The fall in the value of the pound makes British goods cheaper to export on the global market, but makes imported goods and products more expensive.

"Fuel costs falling more slowly than a year ago as well as rising food prices and air fares all pushed up CPI in August, but these were offset by hotels, wine and clothing leaving the headline rate of inflation unchanged," said Mike Prestwood, head of inflation at the ONS.

"Raw materials costs have risen for the second month running, partly due to the falling value of the pound, though there is little sign of this feeding through to consumer prices yet."

Updated Date:

also read

Govt efforts brought down inflation: Jaitley
Economy

Govt efforts brought down inflation: Jaitley

The wholesale price inflation in September dipped to five-year low of 2.38 percent, while the retail inflation eased to 6.46 percent, the lowest since the government started releasing the new series of Consumer Price Index (CPI) data in January 2012.

Feb retail inflation rises to 8.83% but veggies get cheaper
Economy

Feb retail inflation rises to 8.83% but veggies get cheaper

<br /><br /> Retail inflation, based on the Consumer Price Index, was 7.65 per cent the January, as per the government data release here on Monday.

Aam Aadmi inflation is 13.1%, and rural price rise is worse
Economy

Aam Aadmi inflation is 13.1%, and rural price rise is worse

The new Consumer Prices Index is showing rural inflation rising faster than urban prices - thanks to higher spending in rural areas