September’s CPI figure is the fourth time in five months that Bulgaria registered negative CPI growth (in August, monthly and annual consumer prices were flat).
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Commenting on what the fall in inflation could mean for both United Kingdom interest rates and the pound, Peter Cameron, associate fund manager at EdenTree Investment Management, says: ‘Inflation is back in negative territory again and it’s very unlikely that we’ll see the Bank of England (BoE) raise interest rates this side of Christmas. The forecasts of the 20 economists polled ranged between 3.6 per cent and 5.0 per cent. Accordingly, the annual rate of infation based on the final index stood at -4.00% as compared to -4.05% reported on that date, it added.
The BOE said last week that its near-term outlook for inflation had weakened since August and that price growth will probably stay below 1 per cent until spring 2016.
The ONS said the UK’s consumer price index was weaker in September due to a smaller than usual rise in clothing prices and falling motor fuel prices.
The CPI rose 0.4 percent in the year to the September quarter, following a 0.4-percent increase in the year to the June 2015 quarter.
Official figures showed inflation was -0.1% in September, down from zero in August, pulled lower by cheaper fuel prices.
The producer price index fell 5.9 percent from a year ago, in line with expectations and the same rate of decline as in August, which was the biggest drop since the depths of the global financial crisis in 2009.
The WPI trend is in line with the retail CPI inflation which inched up to 4.41 per cent in September from 3.74 per cent in August with food inflation rising to 3.88 per cent from 2.2 per cent.
The producer price index (PPI) fell 5.9 per cent, extending its streak of negative readings to 43 months, the National Bureau of Statistics (NBS) said.
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“Core inflation, which strips out a few of the more volatile factors putting downward pressure on the headline rate, remains a steady 1%”. However, the price of jute sacking bag (6 per cent), gunny and hessian cloth (4 per cent), jute sacking cloth (3 per cent) and jute yarn (2 per cent) moved up.
