Uk Consumer Prices Unexpectedly Slides to 2.4%

• Uk Consumer Prices Unexpectedly Slides to 2.4%

Cost of goods and services in the United Kingdom slid more than expected in September as prices of food decline, data showed on Wednesday.

The Consumer Price Index, which measures inflation rate, declined from 2.7 per cent recorded in August to 2.4 percent in September, the Office for National Statistics said on Wednesday.

Analysts had predicted 2.6 percent.

“The largest downward contribution came from food and non-alcoholic beverages where prices fell between August and September 2018 but rose between the same two months a year ago,” the ONS said regarding the drop.

“Other large downward contributions came from transport, recreation and culture, and clothing.”

“Partially offsetting upward contributions came from increases to electricity and gas prices.”

The Bank of England raised interest rates in August to curb inflation rate amid Brexit uncertainty. Making it the second hike in almost 10 years.

“UK inflationary pressure has eased after increasing for two consecutive months,” Miles Eakers, chief market analyst at foreign exchange group Centtrip, said following Wednesday’s data.”

“This should be welcome news for the Bank of England, as rising prices could trigger an interest rate increase, something the central bank looks set to avoid until after a Brexit agreement has been made.”

However, Brexit’s uncertainty weighed on the Pound outlook to trade below the 1.3100 levels against the U.S. dollar for the first time this week.