UK inflation rises to 2.7%

UK Britain Union Jack Bunting 480

The UK consumer prices index (CPI) rate of inflation rose to 2.7 per cent in October, according to the Office for National Statistics.

CPI has risen by 0.5 per cent from 2.2 per cent in September, while the retail prices index (RPI) has also risen to 3.2 per cent in October, a rise of 0.6 per cent from 2.6 per cent in September.

Last month, CPI fell to its lowest level since November 2009.

Inflation has fallen markedly since its high in September 2011, but still remains above the Bank of England’s 2 per cent target. CPI reached a record high of 5.2 per cent in September 2011 while RPI stood at 5.8 per cent in September 2011, its highest point since June 1991.

The main upward pressure on CPI came from the education sector, with the ONS citing university tuition fees. Smaller upward contributions also came from food & non-alcoholic beverages and transport. These were partially offset by downward pressures from the housing & household services, recreation and miscellaneous goods & services sectors.

The largest upward pressure on RPI also came from university tuition fees, followed by food and housing. Fuel & light provided the largest downward pressure.