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Economic News from the UK

20 Oct 2012

UK employment rose by, a very robust, 212,000 in three months to August to reach 29.59 million - slightly higher than its 2008 peak (and previous record high) of 29.57 million.

The unemployment rate fell from 8.1% to a 14-month low of 7.9%, with youth unemployment falling markedly, from 21.8% to 20.5%.

The share of part-time employment has increased since the 2008 peak. In the three months to August, 2012, it rose more than full-time employment again (125,000 compared to 88,000).

UK CPI inflation fell from 2.5% to a three-year low of 2.2% in September. It has fallen ten times in the last 12 months, after peaking in September 2011 at 5.2%. In the US, CPI inflation rose for the second-consecutive month at 2.0% from 1.7%, transport prices being the main contributor. US core inflation (which excludes food and fuel prices) rose modestly, from 1.9% to 2.0%.

The largest contributor to the fall in inflation was household utility bills, as last year’s September price rises fell out of the index. This downward impact was partly offset, by upward pressure from transport prices, mainly the  3.9p and 3.5p per litre rises in petrol and diesel prices, between August and September 2012. UK retail sales volumes (excluding automotive fuel) rose 0.6% in September, (slightly better than expectations of 0.3% growth).

In Q3 2012,year-on-year growth, in Chinese GDP, eased for the ninth time in ten quarters from 7.6% to 7.4%.

This news was kindly provided by the CBI, for further information, please contact: daniel.lee@cbi.org.uk

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