City Index: Inflation figures ‘slightly stronger than expected’

Much has been made in recent weeks of a potential rise in inflation in the UK thanks to the falling value of the pound as markets come to terms with the UK’s exit from the European Union.

Now, top CFD broker CityIndex says that the latest inflation figures were ‘slightly stronger than expected’ as the headline rate rose to its highest level since March 2016.

Rising costs of oil, clothing and hotel prices push inflation to highest level since March

New figures show that the annual headline rate of inflation in the UK rose to 1.5 per cent in September, in line with expectations and the highest level since March 2016.

The rise is attributed to the increased costs of imports post-Brexit, particularly oil imports which are driving up the cost of motor fuel. The weak pound is also boosting the domestic tourism industry which has resulted in a rise in hotel prices.

CityIndex – one of the largest CFD brokers – says that inflation may not be as high as many analysts expected because supermarkets are currently unwilling to pass on rising prices to consumers. This was evidenced by the row between Unilever and Tesco that erupted recently over the cost of Marmite. The share prices of the major supermarkets has remained steady as analysts believe that keeping prices low and maintaining market share is currently a priority.

CityIndex – among the best CFD brokers – says that the pound has continued to recover as a result of the inflation figures while both the FTSE and GBP both rose as a result of the data. The top CFD broker suggests that the major European stock markets have benefited from recent central bank suggestions that inflation will be allowed to rise to help growth, which is favourable for share prices.

Compare Vetted Investing, Trading & Currency Accounts

Investing AccountsTrading PlatformsCurrency Transfers
Compare Investment Accounts

Compare Investment Accounts

Compare Trading Platforms

Compare Trading Platforms

Compare Currency Brokers

Compare Currency Brokers

Would You Like More Information On Featured Trading Platforms?

Visit IG

IG Reviews

Visit CMC

CMC Reviews

Visit Pepperstone

Pepperstone Reviews
Can't find what you are looking for? Visit our online trading provider comparison page.

Trading Risk Warning

ALL INVESTING INVOLVES RISK. Investing, Derivatives, Spread betting and CFD trading carry a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved.
ESMA & FCA Risk Warning – “CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 68-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Capital at risk”