Inflation stays at 3.1%

Consumer price index (CPI) inflation remained at 3.1% in September, above the Bank of England’s official target, according to the Office for National Statistics.

Retail price index (RPI) inflation was 4.6%, almost unchanged from 4.7% in August.

The European Union’s CPI figure was 2% for the same period. (article continues below)

Upward pressures in the UK figure came from food as well as clothing and footwear, but the price of fuels, second-hand cars and air transport declined.

The stubbornly high level of inflation has led one member of the Bank’s Monetary Policy Committee, Andrew Sentence, to call for an interest rate rise.

However, the Treasury this week approved a new round of quantitative easing, sparking fears the buying power of sterling will fall and inflation will rise.