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In a surprising turn of events, the latest inflation figures reveal a slowdown in the rise of consumer prices. According to the Office for National Statistics (ONS), The Consumer Prices Index (CPI) sat at 4.6% in October, down from 6.7% in September.
Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 4.7% annually to October 2023, marking a significant drop from the 6.3% reported in September this year. Looking into the figures, CPIH showed a modest 0.1% increase in October 2023. This contrasts with the 1.6% rise observed in October 2022.
Housing and Household Services:
A primary factor contributing to the downward trend in both CPIH and CPI annual rates was housing and household services. The annual rate for CPI in this sector hit its lowest point since records began in January 1950. The decline is a result of changes in housing markets, utility costs, and other household-related services.
Analysts suggest that the change in inflation rates, particularly in the housing sector, could be a result of various factors, including increased housing supply and potential shifts in consumer behaviour. The minimal monthly changes in CPIH and CPI for October 2023 indicate a potential stabilisation in the cost of living for consumers.
While these figures provide some optimism for consumers, economists continue to monitor the situation closely, considering the dynamic nature of the UK economic conditions. The role of housing and household services in this decline raises intriguing questions about the broader economic landscape and the factors influencing consumer spending.
However, it’s important for the government to stay watchful and keep up the efforts that led to this improvement. This way, the economy can return to normal without risking the progress made.
November’s rate of inflation will be announced on 20th December 2023.
Data Source: Office for National Statistics
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