U.K. CPI reached its highest level in almost two years in September, rising to +1% on year from +0.6% in August and topping consensus of 0.9%. The U.K.’s Office of National Statistics says it hasn’t seen explicit evidence that the pound’s weakness has been affecting CPI, although it has had an impact on producer prices. “Even though 1% is still some way off the Bank of England’s 2% inflation target, the impact of currency changes works with a lag so further rises in CPI should be expected,” said Fidelity investment director Tom Stevenson. The pound was +0.4% at $1.2238 at the time of writing.
