- Core CPI inflation for the UK is at 1.3 per cent for September
- House prices rise in August on back of stamp duty holiday
- Commentators expect monetary stimulus over the winter
Year-on-year headline and core consumer prices index (CPI) inflation in the UK economy rose to 0.5 per cent and 1.3 per cent, respectively in September. Figures published on Wednesday morning reflected the modest late summer recovery in transport services and lingering benefits to the services sector of the government’s Eat Out to Help Out scheme.
Further Covid-19 misery is in store, however, which may lead to central bank action before winter is out. In the view of Jon Cunliffe, chief investment officer at Charles Stanley: “With the economic recovery faltering in the wake of further Covid-related restrictions to free movement, we expect further QE [quantitative easing] from the Bank of England at next month’s Monetary Policy Committee meeting and during 2021.”