U.K. Inflation Nears Three-Year Low

By Trey Thoelcke Published Oct 16, 6:25AM EDT

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The U.K. Office for National Statistics (ONS) said today that inflation in the country fell to its lowest level in almost three years in September. Annual consumer price inflation slowed to 2.2% last month, in line with economist forecasts. That was the slowest pace of increase since November 2009, and it followed August’s 2.5% reading. Retail price inflation, which includes some housing and tax costs, slipped from 2.9% to 2.6%.

“The rate of inflation has now more than halved since its peak last September, bringing welcome relief to the budgets of families and businesses,” a finance ministry spokesman said.

However, inflation remains above the Bank of England’s 2% target. Furthermore, hefty price increases were announced recently by four of Britain’s six largest energy suppliers but have yet to kick in. Last month’s reading was lower due largely to a sharp rise in gas and electricity prices that drove inflation to a peak of 5.2% in September 2011.

Separately, the ONS said factory gate inflation rose to 2.5%, which was higher than analyst forecasts of 2.2%. Input prices declined 1.2%, as the price of oil and imported metals fell. And house prices grew 1.8% on the year in August, which was down from a 2% increase in July.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.