UK Inflation Records Surprise Dip In October

The UK inflation rate recorded a surprise dip last month, according to the latest figures from the Office Of National Statistics.

The underlying rate of inflation, which excludes mortgage interest payments, dropped to 2.7% in October, down from 2.8% in the previous month. The fall was mainly caused by a slower rise in house prices than a year ago.

The headline rate, which includes mortgage interest payments, dropped to 2.6%, down from 2.8% in September, its lowest level for almost a year. However, it remained just above the Government’s target of 2.5%.

The Harmonised Index of Consumer Prices, which is due to be adopted for the new inflation target, remained unchanged at 1.4% in September.

The all items Retail Prices Index for September 2003 was 182.6.

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