Skip to main content

UK inflation rate remains negative in October Bank of England governor Mark Carney has said it could be two years before inflation returns to its 2% target



UK inflation as measured by the Consumer Prices Index (CPI) remained at -0.1% in October, the Office for National Statistics has said.



The news will further dampen expectations of a rise in interest rates any time soon.
The Bank of England said earlier this month that the global economy was weakening, depressing inflation risks.
Following this report, many economists forecast that rates would not rise until well into next year.
October marked the first time consumer prices have fallen on an annual basis for two months in a row. The price of clothing rose last month, but this was offset by a fall in food, alcohol and tobacco.
The ONS said prices fuel prices fell by 14% on an annual basis, while food and drink prices fell by 2.7% in October and energy costs were 4.1% lower.
"This is now the ninth month running that CPI has been at or very closer to zero," ONS statistician Richard Campbell said.

Households have seen the prices they pay for goods and services remain largely unchanged over the last year. The Consumer Prices Index – which measures changes in prices – fell by 0.1% in the year to October 2015. This means that a basket of shopping that cost £100.00 a year ago would cost £99.90 now. This is the same rate of inflation as seen in the year to September and continues the trend of negligible inflation that the UK has experienced since the start of 2015.


Further Reading 

UK House Price Index September 2015


The European Union, monetary and financial stability, and the Bank of England - speech by Mark