AIRLINK 74.85 Increased By ▲ 0.56 (0.75%)
BOP 4.98 Increased By ▲ 0.03 (0.61%)
CNERGY 4.49 Increased By ▲ 0.12 (2.75%)
DFML 40.00 Increased By ▲ 1.20 (3.09%)
DGKC 86.35 Increased By ▲ 1.53 (1.8%)
FCCL 21.36 Increased By ▲ 0.15 (0.71%)
FFBL 33.85 Decreased By ▼ -0.27 (-0.79%)
FFL 9.72 Increased By ▲ 0.02 (0.21%)
GGL 10.45 Increased By ▲ 0.03 (0.29%)
HBL 112.74 Decreased By ▼ -0.26 (-0.23%)
HUBC 137.44 Increased By ▲ 1.24 (0.91%)
HUMNL 11.42 Decreased By ▼ -0.48 (-4.03%)
KEL 5.28 Increased By ▲ 0.57 (12.1%)
KOSM 4.63 Increased By ▲ 0.19 (4.28%)
MLCF 37.80 Increased By ▲ 0.15 (0.4%)
OGDC 139.50 Increased By ▲ 3.30 (2.42%)
PAEL 25.61 Increased By ▲ 0.51 (2.03%)
PIAA 20.68 Increased By ▲ 1.44 (7.48%)
PIBTL 6.80 Increased By ▲ 0.09 (1.34%)
PPL 122.20 Increased By ▲ 0.10 (0.08%)
PRL 26.58 Decreased By ▼ -0.07 (-0.26%)
PTC 14.05 Increased By ▲ 0.12 (0.86%)
SEARL 58.98 Increased By ▲ 1.76 (3.08%)
SNGP 68.95 Increased By ▲ 1.35 (2%)
SSGC 10.30 Increased By ▲ 0.05 (0.49%)
TELE 8.38 Decreased By ▼ -0.02 (-0.24%)
TPLP 11.06 Decreased By ▼ -0.07 (-0.63%)
TRG 64.19 Increased By ▲ 1.38 (2.2%)
UNITY 26.55 Increased By ▲ 0.05 (0.19%)
WTL 1.45 Increased By ▲ 0.10 (7.41%)
BR100 7,841 Increased By 30.9 (0.4%)
BR30 25,465 Increased By 315.4 (1.25%)
KSE100 75,114 Increased By 157.8 (0.21%)
KSE30 24,114 Increased By 30.8 (0.13%)

imageLONDON: British inflation picked up slightly in October from a five-year low as fuel prices fell less strongly than a year ago, leaving the Bank of England under no pressure to start raising interest rates.

Consumer prices rose by an annual 1.3 percent in October, compared with 1.2 percent in September and in line with economists' forecasts in a Reuters poll, the Office for National Statistics said on Tuesday.

The ONS said food and non-alcoholic beverages fell 1.4 percent, marking the longest run of declining prices for those goods since 2000 as supermarkets engage in a price war.

Transport costs fell too but by less than they did a year ago, pushing up the overall yearly inflation rate. Price increases for computer games also pushed up inflation.

Core inflation, which excludes much of the effect of volatile food and energy costs, held steady at 1.5 percent.

The Bank of England said last week that inflation might fall to below 1 percent over the next six months and it expected annual price growth to hit its target of 2 percent only towards the end of a three-year outlook period.

Financial markets are expecting the BoE to start raising rates only in late 2015 or possibly later.

The ONS said prices at the factory gate fell 0.5 percent compared with October last year, indicating a lack of pressure on inflation in the pipeline.

Input prices for factories fell by 8.4 percent, the biggest decline since September 2009.

The fall in inflation in recent months has given some respite to British households with earnings rising by more than prices in September, a welcome turnaround for Prime Minister David Cameron ahead of May's national elections.

Separate data from the ONS on Tuesday showed house prices in Britain rose 12.1 percent in yearly terms in September, compared with an increase of 11.7 percent in August.

Other, more up-to-date surveys have shown the rapid pace of house price growth starting to cool.

In London, property prices jumped 18.8 percent in September, the ONS said.

Copyright Reuters, 2014

Comments

Comments are closed.