The UK’s Consumer Prices Index (CPI) – which measures the average price of various goods and services – recorded a yearly change in September of 3.1%, just below analyst forecasts of a 3.2% advance.
While this is still a sticky inflation number, it is marginally down from the previous month’s rolling yearly figure of 3.2%. It is however unlikely to alter the widely expected view that Bank of England policymakers will hold off raising rates to 0.25% at their November meeting. Inflation begets rate rises and this is ultimately the only blunt tool to help cool it and the only tool left to policymakers if we are to believe their transient inflation messages of earlier this year.
The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.