United Kingdom inflation steady at five-year high in October

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The spike in consumer price inflation was driven mostly by a doubling of vegetable price index to 7.47 per cent from 3.92 per cent in September, data released by the Central Statistics Office (CSO) showed.

Britain's annual inflation rate steadied at a five-year high of 3.0 percent in October as rising food prices offset falling motor fuel costs, official data showed Tuesday.

Similarly, rural inflation rose to 3.3 per cent from September's 3.15 per cent and August's 3.22 per cent, and urban inflation has gone up to 3.81 per cent as compared to 3.44 per cent in September and 3.35 per cent in August. However, fruits were comparably cheaper in October on sequential basis.

A study of government data suggests that the retail inflation would have been much higher if the price of pulses had not fallen by 23 per cent on account of bumper crop this year. It was (-) 22.51 per cent in September.

Separately on Tuesday, data from research group Kantar showed that United Kingdom grocery price inflation for the quarter ending November 5 stood at 3.4 percent, the highest level in four years.

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Both wholesale and retail prices edged up in the month of October led by firming up of food prices, especially in the vegetables segment, said FICCI President Pankaj Patel.

Prices of protein-rich items like eggs and milk (and its products) also increased.

Commenting on the Reserve Bank of India's (RBI) expected reaction to the inflation numbers released before its monetary policy review meet on December 6, Jaikishan J. Parmar, Research Analyst at Angel Broking, said: "Firstly, the CPI inflation is still well within the RBI comfort zone of 4 per cent".

In October, inflation rate for the food basket increased to 1.9 per cent from levels of 1.25 per cent in September.

Crude prices have rallied, sending Brent crude to its highest since June 2015, a worry given that India imports most of its energy needs.

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