Inflation in UK unexpectedly slowed in September, making many believe that the surge in data in August is due to temporary factors and that the overall trend of inflation in the coming period will be bearish.
According to the National Bureau of Statistics, the CPI rose 2.4% year on year, below expectations of 2.6% and 2.7% prior. Food prices were the main cause of slowing inflation growth, while home prices rose 3.2%, the slowest pace since August 2013.
Consumer inflation hit a five-year high of 3.1% in November, when the inflationary effect of the pound's fall after Britain's exit from the EU in June 2016 peaked. The Bank of England expects inflation to slow but it will stay above its 2% target in two years as it gradually raises borrowing costs.
