2016.10.1805:02:00UTC+00U.K. Inflation Accelerates In September

U.K. inflation accelerated in September on higher clothing and transport costs, the Office for National Statistics said Tuesday.

Inflation rose to 1 percent from 0.6 percent in August. The rate was the highest since November 2014, when it was also 1.0 percent. Inflation was expected to climb to 0.9 percent.

Similarly, core inflation that excludes energy, food, alcoholic beverages and tobacco increased to 1.5 percent from 1.3 percent.

Another report from ONS showed that factory gate prices rose at a faster pace of 1.2 percent annually in September, following a rise of 0.9 percent in August.

This was the third annual increase since June 2014 and exceeded the expected rate of 1.1 percent.

On a monthly basis, output prices advanced 0.2 percent in September, in line with expectations.

Meanwhile, input price inflation eased more-than expected to 7.2 percent from 7.8 percent in August. Prices were forecast to gain 7.4 percent.

Month-on-month, input prices remained flat after rising 0.2 percent in the prior month. Economists had forecast a 0.4 percent increase.