FTSE 100 climbs as UK inflation falls to 3-year low

<p>The FTSE 100 has climbed as inflation falls to a three-year low.</p>

The FTSE 100 has climbed in trading this morning (October 16th), as fresh data shows inflation has dropped to a three-year nadir of 2.2 per cent in September.

Most experts believed official figures from the Office for National Statistics released today would see consumer price index (CPI) inflation slide to this level from August's 2.5 per cent.

Retail price inflation – which includes some housing and tax costs – also dropped to 2.6 per cent from 2.9 per cent.

Some thought the CPI figure would dip lower than the government's two per cent target, while there are fears the respite may be short-lived, as energy bills start to rise this autumn.

The Office for Budget Responsibility expected September's CPI to be 2.6 per cent and under that estimate the benefit bill for 2013 stood at £183 billion – therefore, this latest report is good news for the chancellor.

At 10:30 BST, the FTSE 100 was 0.5 per cent higher to an index value of 5835.3 points.

Find the latest spread betting strategies for the FTSE 100 at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.