Core inflation rises slightly

Overall annual inflation from September’s Consumer Price Index shows a jump from 2.2% in August to 2.6% in September.  If we look at the 85% of the index that excludes mortgage interest and energy products the increase was from 0.3% to 0.4%.

Although the headline rate of inflation is 2.6%, the majority is provided by two categories that make up 15% of the index.  Both energy products and mortgage interest contributed 1.1 percentage points to overall rate, leaving 0.4 percentage points for the remaining 85% of the index.

Here are the contributions for all categories in the CPI.

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