Analysts expect inflation to slip due to one-off utility bill factor
CONSUMER price inflation will have slipped in September, analysts said yesterday, ahead of data coming out tomorrow.
“Inflation should have fallen sharply in September,” said Vicky Redwood at Capital Economics, “Given that we have reached the anniversary of sharp rises in utility prices a year ago.” Redwood predicted the rate would dive to 1.9 per cent, from 2.5 per cent in August.
John Lonski and Ben Garber at Moody’s Analytics agreed the rate would come down, but forecast inflation of 2.2 per cent due to rises in food and oil prices over the past 12 months.
Bank of England officials including governor Sir Mervyn King have long put above-target inflation down to one-off factors, and predicted the rate would fall towards two per cent into 2013.