The rate of inflation jumped to 2.7% in October, driven in part by increases in the price of food and non-alcoholic beverages.
The figures released today by the Office for National Statistics (ONS) show the Consumer Prices Index (CPI) increased to 2.7% from 2.2% in September.
It is a higher than expected rise. Economists were expecting CPI would rise to between 2.3% and 2.5% in October.
The rise was mostly due to the increase in university tuition fees. However, this was offset slightly by a fall in electricity and gas bills and a drop in the prices of games, toys and hobbies.
The Retail Prices Index (RPI) inflation measure also increased, rising to 3.2% in October from 2.6% in September.
Capital Economics UK Economist Samuel Tombs said the rise is “not quite as bad as it looks” because it was driven by “the influence of temporary
factors”.
Tombs added he expected the “weakness of economic activity will bring inflation down again in time, potentially to a very low rate. We still expect inflation to fall back below its target towards the end of next year”.
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