Share Prices & Company Research

Press Release

16 October 2019

Inflation remains steady as real wages rise

UK consumer price inflation remained at 1.7% in September, below analyst expectations of 1.8%.

Andrew Feldhaus, Investment Manager at Redmayne Bentley, said: “Consumers should welcome the result as real wages continue to rise almost to pre-financial crisis levels, which will increase their purchasing powers. Additionally, The Bank of England has announced it may raise interest rates to push inflation to the desired 2% target, however such changes in monetary policy remain unclear as the Brexit outcome becomes more unpredictable and the global trend of cutting interest rates to counter the current economic slowdown continues.

“The downward contributions to change in inflation have largely been led by the fall in price of transport-related products, such as motor fuels and second-hand cars. Furthermore, the prices of gas and electricity still continue to contribute to lower inflation, despite few changes to Ofgem’s energy price caps set in April 2019. These downside movements were countered by restaurants and hotels, which have seen a 3.2% rise in prices over the past 12 months.”
Ends


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Inflation remains steady as real wages rise
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